Take Two Wants To Borrow $200 Million
Industrygamers has come across a bit of news likely to send people absolutely rushing for the ‘wild speculation’ drawer of their overreaction shelves. After having lost 47 million during Q2, Take Two Interactive plans to $200 million in convertible senior notes that come due in 2016. The reason? “Net proceeds from the sale of the notes will be used for general corporate purposes, which may include acquisitions and other strategic investments.”
You know what this means? Diamond grills for everyone who’s been with the company for more than 5 years. But more seriously, learned speculation is that the vast conglomerate that owns everything from GTA to Civilization is planning to make a new acquisition. Wedbush Securities’ Michael Pachter says “”We think that an acquisition is imminent, and believe Take-Two is likely exploring an investment in the mobile or social games space. We note that digitally delivered content accounted for 25% of net revenue in Q2:12, and management consistently lists digital as a component of the company’s growth strategy.”
That’s a bold move for a company that only just fought off a hostile takeover attempt from Eletronic Arts back in 2009. My guess? They’re going to buy a company that makes mobile games for beepers. Totally old school.
Via VG 24/7