Take-Two prices public offering at $225 per share

Published 21/05/2025, 04:22
Take-Two prices public offering at $225 per share

NEW YORK - Take-Two Interactive Software, Inc. (NASDAQ: TTWO), a major player in the interactive entertainment industry, has announced the pricing of its public offering of 4,750,000 shares of common stock at $225.00 each. The company, known for its development and publishing of video games, stated that the offering is solely by the company, with no secondary sellers involved. The offering price comes as the stock trades near its 52-week high of $240.78, with InvestingPro data showing the stock currently appears overvalued based on its proprietary Fair Value model.

The transaction also includes an option for underwriters to purchase up to an additional 712,500 shares within 30 days. Should this option be fully exercised, Take-Two’s net proceeds are expected to rise from approximately $1.04 billion to about $1.19 billion after deducting offering expenses. The company has demonstrated strong market performance, with a 56.85% return over the past year and current market capitalization of $42.14 billion. According to InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ top stocks, Take-Two operates with a moderate level of debt and has seen significant revenue growth, reaching $5.63 billion in the last twelve months.

The company has earmarked the net proceeds for general corporate purposes, which may encompass repaying outstanding debt and financing potential acquisitions. The offering is anticipated to close on May 22, 2025, subject to the satisfaction of customary closing conditions.

J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are leading the offering as bookrunning managers. Wells Fargo Securities, BofA Securities, and BNP Paribas are also participating as joint bookrunning managers.

Take-Two has made these securities available through a shelf registration statement on Form S-3, filed with the Securities and Exchange Commission (SEC) on February 7, 2025. Interested parties are advised to read the prospectus included in the registration statement and other related documents for more detailed information about Take-Two and this offering.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such an offer or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Take-Two, based in New York City, is renowned for creating and distributing interactive entertainment globally, with notable products from its subsidiaries Rockstar Games, 2K, and Zynga. The company’s offerings span across console gaming systems, mobile devices, and PCs, available via physical retail, digital download, online platforms, and cloud streaming services. Its common stock is traded on NASDAQ under the ticker symbol TTWO. While currently not profitable over the last twelve months, InvestingPro analysis indicates that analysts expect the company to return to profitability this year, with 5 analysts recently revising their earnings estimates upward.

The information for this article is based on a press release statement from Take-Two Interactive Software.

In other recent news, Take-Two Interactive Software, Inc. announced a proposed underwritten public offering of $1 billion of its common stock, with an additional 30-day option for underwriters to purchase up to $150 million more. The company plans to use the proceeds for general corporate purposes, including debt repayment and potential acquisitions, although the offering’s completion is subject to market conditions. Following the announcement, Goldman Sachs raised its price target for Take-Two to $255, maintaining a Buy rating, citing strong performance in recent titles and future releases like Grand Theft Auto VI. TD Cowen also increased its price target to $249, highlighting the strong performance of NBA 2K and mobile games, despite the delay of GTA VI to fiscal year 2027. Meanwhile, BMO Capital Markets maintained an Outperform rating with a $236 target, emphasizing the robust growth of recurring consumer spending in the NBA 2K series and the anticipated impact of GTA VI’s release. These developments underscore a positive outlook from analysts regarding Take-Two’s financial trajectory and strategic initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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