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NEW YORK - Take-Two Interactive Software, Inc. (NASDAQ:TTWO), a prominent game developer and publisher with a market capitalization of $42 billion and an impressive 55% stock return over the past year, announced today its intention to conduct an underwritten public offering of $1 billion of its common stock. The company also plans to offer underwriters a 30-day option to purchase up to an additional $150 million in shares. According to InvestingPro data, the stock is trading near its 52-week high of $240.78.
The net proceeds from the offering are earmarked for general corporate purposes, which may include repaying debt and financing potential acquisitions. The company currently operates with $4.1 billion in total debt and maintains a moderate debt-to-capital ratio of 0.09. However, the completion of the offering, its final size, and terms are subject to market conditions and other factors, with no guarantees provided by the company.
J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC have been named as the lead bookrunning managers for the proposed offering. The securities will be issued under a shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC) on February 7, 2025, which includes a detailed prospectus.
Potential investors are advised to read the prospectus and related documents filed with the SEC for a more comprehensive understanding of Take-Two, its common stock, and the offering. The prospectus and the related prospectus supplement will be available through J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC or on the SEC’s website.
Take-Two Interactive, headquartered in New York City, is known for its development and publication of interactive entertainment products through its subsidiaries, including Rockstar Games, 2K, and Zynga. The company generates annual revenue of $5.6 billion and caters to a global market with products for console systems, mobile devices, and PCs, distributing both physically and digitally. While currently not profitable, InvestingPro analysis indicates that analysts expect the company to return to profitability this year. Get access to 12 more exclusive ProTips and a comprehensive Pro Research Report for deeper insights into Take-Two’s financial health and growth prospects.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities and specifies that any sale will be made exclusively through the company’s prospectus supplement and prospectus.
The information in this article is based on a press release statement from Take-Two Interactive Software, Inc.
In other recent news, Take-Two Interactive has garnered attention from several analyst firms following its fourth fiscal quarter 2025 earnings report. Goldman Sachs raised its price target for Take-Two to $255, maintaining a Buy rating, highlighting strong performance in recent titles and mobile gaming operations. TD Cowen also increased its target to $249, citing better-than-expected fourth-quarter bookings and maintaining a positive outlook despite the delay of Grand Theft Auto VI to fiscal year 2027. BMO Capital Markets retained an Outperform rating with a $236 target, emphasizing the company’s robust financial results and the anticipated mega-launch of GTA VI in May 2026.
Benchmark raised its target to $250, attributing the adjustment to Take-Two’s solid fiscal year-end performance and the success of its main franchises and mobile gaming sector. Raymond James echoed this sentiment, increasing its target to $250, while also maintaining an Outperform rating, focusing on the strong performance of NBA 2K25 and mobile games. The anticipation for Grand Theft Auto VI remains high, with the second trailer achieving a record-breaking 475 million views within 24 hours, underscoring the franchise’s cultural impact.
Take-Two’s management has expressed confidence in its operational strategy, supported by a robust content pipeline that includes upcoming titles like Mafia: The Old Country and Borderlands IV. The company’s recurrent consumer spending has exceeded expectations, contributing significantly to total net bookings. Analysts have noted that despite the GTA VI delay, Take-Two continues to hold a strong position in the gaming market, with the upcoming releases expected to enhance its financial trajectory.
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