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!
Hi guys.
Thanks as always 🙂
I played a lot of Magic the Gathering because a new expansion was released. And since wrath of the Koch king classic was released for WoW I got back to it for a lot of hours 🙂 I already wrote that to episode 663 which I listened directly before this episode 🙂
First of all: enjoy your holiday in LA Jonah!
Death stranding? Chapeau! I was so damn excited for this game and I was so hard disappointed … can’t remember whenever a game disappointed me that much. I think I managed to play 10 hours to give it a try, but I don’t think I will ever return to it 🙂
GTA6 Leak: I think the only GTA I played was the first one together with a friend sitting together and he played it, I watched it 🙂
KOF: isn’t there a new Street Fighter coming? I don’t know anything about KoF per Samurai showdown … only Street Fighter 🙂
Sorry that I can’t say so much this time, but I don’t know what to say regarding games I don’t know 🙂
Please stay healthy and keep on gaming!
Greetings from Germany
Ralf