It’s official, EA has given up their talks with Take-Two and, as a result, the stock of both companies is falling like a stone. While gamers may cheer knowing the Grand Theft Auto and 2K Sports product lines will continue to compete with EA products, share holders are doing a WTF?
Take-Two has had its share of financial difficulties, but nothing shakes up a stock more than a break in discussions when the words acquisition have been spoken. It causes uncertainty and lack of understanding on the part of the game industry and share holders. EA’s stock dropped 2.7% upon opening this morning but has begun to stablize as it’s clear EA isn’t in any financial peril from this breakup in discussion.
Take-Two’s stock, however, is in epic free fall with a 25% decline since the discussions ended. One theory is that, “is taking a huge beating as everyone and their mother tries desperately to sell the shares the figured EA was going to to buy.” (kotaku)
As the game industry gets more competitive, builds bigger bank-roll and becomes a staple entertainment icon there is always more business savvy people getting into the game trying to make a fast buck. In this case, the shareholders obviously aren’t pushing for Take-Two’s future decisions or product launches — this is the reaction of business folks trying to make money.
There is huge risk with block buster 100-million dollar titles and all the crazy hype involved with some of the biggest games in history. They break sales records, smoke box-office numbers and bring new gamers into the industry but it’s all at risk when money gets involved. One bad move and a company making a title like GTA can find themselves in financial peril.
With risk comes reward, but failure is always sneaking up around the corner so watch out!
The deal has been done, you can now officially call the company Activision Blizzard. Sure, the name is sorta lame but it does cover the bases… they’re Activision and they’re Blizzard; surely neither company wanted to lose their lively hood and branding.
Hi all.
Thanks for this episode! I really enjoy your podcast … already several years 🙂
I have a question, what I wanted to ask since several episodes: @Jonah: why do you start nearly every sentence with „Here is the thing“? Maybebi don’t get it, because I am not a native speaker, but it sounds „strange“ 🙂 no offense!!! *hug*
I would love, if you (all of you) could talk more about old games (gaming flashback) especially games you played during your youth. Which games fascinated you? Which games do you hate? Which games did you not finish because they are too difficult?
Did you ever think about playing games on twitch? Something like „let’s plays“?
Or do you sometimes play online games with your fans? Maybe a discord channel and play song Ames together?
I know you have family, and fans like me, who live in a different time zone, are nearly not able to participate, but in case of twitch, it would be possible to watch it afterwards 🙂
So far: please go on and do a lot more episodes! Thank you!
Greetings from Germany
Ralf