Take-Two reveals acquisition prices, hints at future lawsuits

SEC filing reveals cost of Irrational, Firaxis, Visual Concepts; hints at two states' investigations of Hot Coffee.

After much hand-wringing and executive-level drama, Take-Two Interactive's annual report for the year of the Hot Coffee scandal has finally been filed with the Securities and Exchange Commission. And while the company's financials are essentially unchanged from the preliminary figures given earlier, there were a few revelations to be found within the crevices of the company's 10-K filing.

First and foremost, the company laid out the legal web in which it now finds itself entwined. In addition to the ongoing investigation by the Federal Trade Commission Division of Advertising Practices, a lawsuit brought against the company by the families of slain police officers, and a recently filed suit from the city attorney of Los Angeles, Hot Coffee has led to three class-action complaints against the publisher in New York and Pennsylvania, and a similar complaint in Illinois. The annual filing also sheds light on another action in Delaware Chancery Court looking to compel the company to turn over books and records regarding Grand Theft Auto: San Andreas.

Perhaps most interesting among the legal proceedings listed in the filing is that the attorneys general from North Carolina and Connecticut have also asked Take-Two for documents relating to San Andreas, perhaps foreshadowing the arrival of more litigation in the company's future.

When it wasn't combating legal woes in 2005, Take-Two was purchasing developers at a steady clip, snatching up Irrational Studios, Gaia Capitol Group, and Visual Concepts before the October 31 end of its fiscal year.

While it wasn't announced until earlier this month, Take-Two purchased BioShock developer Irrational Games last August. And while financial terms weren't disclosed at the time, the company's annual report puts the total cost of acquisition at nearly $11.8 million in a mix of cash, stock, development advances, incentives, and deferred consideration.

Two months earlier, the company acquired Gaia Capital Group (which it currently has working on the next Top Spin title) for a sum of $11.4 million. That payout was a mix of cash, development advances, and deferred consideration.

However, the big-ticket item for the year was the first one the company picked up. Back in January, the company purchased Visual Concepts from Sega for a reported $24 million, but in its annual filing, the total cost of the studio adds up to roughly $32.2 million.

Despite missing the close of Take-Two's fiscal year (albeit by less than a week), Take-Two's acquisition of Firaxis Games was also detailed in the company's annual report. The publisher picked up the developer of PC hits like Civilization and Sid Meier's Pirates for $26.7 million in cash, stock, and development advances, with almost $11.3 million of that figure coming in the form of possible considerations based on future product sales.

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Discussion

58 comments
halo2maniak
halo2maniak

Cant they just stop it with the laws against games.

Briantb_2008
Briantb_2008

I read some of these posts by you guys. And all I have to say is that a series like Grand Theft Auto will not stop the bad rap games get. No matter what some one will be complaining that the games are too violent. It just happens to be that GTA is the most violent of games. And the fact that people will go out and commit a crime and blame it on the game. The game may give you the idea but its the person who decides to actually go out and do it. Its not Take-Two fault for the violent content in video games. Its the people like us who enjoy playing these games and further the need for these games to be made. Even with all the legal expense take-two has it will still be making a killing in profits. The game has been the top game of Gamespot for over a year. That

jeszac
jeszac

GTA is in my opinion the one of the greatest, most innovative serie ever made and now their creator/publisher ends up having financial trouble because of some pseudo-sex minigame and the usual eminem'esque "somebody-else made me do it" type of crap. And then again, what is so wrong in our society that most people consider sex worst than violence? One can kill 40 people in a movie and it'll be rated pg13 but if we see even one boob then it's pg16 or more. As a father myself, I'd be much more concerned if my son would try to murder somebody than if he'd be caught trying to have sex but that's just my humble twisted opinion.....Common senators, offended parents or whoever is crying over the hot-coffee mod...in case you don't know it, sex is not the worst thing that ever happened to humanity.

onigedaki
onigedaki

Here's my deal. Games didn't "start" to get a bad rap for Hot coffee. I'll tell you what games started the political hatred of VG's. Pac-man and Mortal Kombat.

drxiii
drxiii

woops hmm sorry bout that wrong post.

drxiii
drxiii

it's cuz u no rednecks !@#$ everything up. and the republicans.

ExcAREentric
ExcAREentric

I dont like Take Two, i couldnt care less if they go under. Actually, I'd laugh if they did.

moozeditty
moozeditty

Adults Only games should be available to purchase at as many retailers as Mature rated games. There is no magical evolution that occurs between the ages of 17 and 18 that makes us better able to deal with sex and violence. The rating system is flawed and it has way too much influence over the availability of games.

moozeditty
moozeditty

Dru, if it's a choice between having our grandma hate us because we play those darned video games and having the rest of the world hate us because we ignore their desires completely, grandma and I aren't going to be getting along. Even this stupid move by Clinton can't make me vote Republican.

Sociologist
Sociologist

What a shame that this is happening to such a wonderful company. Take Two is my favorite publisher in the industry and Rockstar has developed the most ground-breaking games in the last decade or so. Everything from Manhunt to the GTA series was extremely polished and I hope that TT emerges from this mess to publish Bully, and other risque games.

jrhawk42
jrhawk42

Quite frankly it seems like there was some manipulation to the public regarding it's rating and the "hot coffee" scandal. Whether the whole company knew about or not is questionable, but really it's no worse than the stuff snuck into disney movies.

ajadoniz
ajadoniz

Games are not evil. If they are too violent or too sexual... don't buy them and don't let your children have them, easy as that. If we all followed the ESRB rating we would all be much happier, but no, parents feel as if they have to be "friends" with their kids and submit to their whiney-brat demands.

deadone1000
deadone1000

Really the problem is quite simple, its America!

rainmanstile
rainmanstile

i got to say ntwining99 has alot of really good point but heres my question have you guys ever played fable because you can do everything but drive a car or use a gun in that game that you can in gta. ever heard of morrowind? you are required to kill some guards and cops in that game. how about hitman? have these senators ever hit any of these games legally? no. i dont think they should either. and do these senators know what the second ammendment means? do you really have to try and destroy a company for making two ragdolls with no gentaile hump?

jimmy9
jimmy9

oh come on no gta

EvIlKiNgKoOpA
EvIlKiNgKoOpA

could this mean no GTA for next gen,hope so,I hate GTA SA but loved GTA3 and GTA VC,something about GTA SA,i didnt like ,oh i know,maybe its the fact,the story for GTA SA,isnt that much different from what i see from the 10 o'clock news,come on to me GTA SA was like a crappy boy n the hood movie the other GTA's had a great cast,and alot of fun in it so yea,just for this crappy GTA game,i hope they get what they have coming to them,BURN!!BASTARDS!!BURN!!

XlpranksterlX
XlpranksterlX

Until they get a clear legal forecast i would not get into take 2 finacially.

ntwining99
ntwining99

They should also concentrate on how mean the mod is - you have to have both hands on the controller... also maldean, I could give you a laundry list of reasons why your wrong but why bother, your dumb

ntwining99
ntwining99

I have to let everyone know a couple things: #1 I understand that the 'sex' mod was apparently undiscovered by the ratings people but does that mean they would have been any harsher. As far as I could tell I didn't see penetration or anything. If your mature doesn't that imply your at the 'sexually' active age anyway. In fact, as far as I can tell, people who are so sexually restricted that they think two consenting adults having sex is the worst possible outcome that could ever be put in a game is beyond insane. I love GTA but shouldn't they be more concerned with the fact that I can use a hammer to crack an old lady in the head and then beat her on the ground till I get money. Or maybe the fact that I can pick up a prositute, have sex in a car with her (sans pixilated nekid fun), and then run the $%&* over and take my money back. What about the level where I beat a guy with a rubber wanker while wearing a leather gimp suit. Lol, its a good thing those people never played the game, they woulda soiled themselves. Instead they hear the words 'secret' content and cry since apparently only they are allowed to use that word. THINK ABOUT THIS: A child is usually not smart enought to hack into this 'forbideen' content anyway. To do so requires details that, as far as I know, come from the internet (and possibly modded hardware, i don't know). Now if this child does have both the inclination and the know how to get this 'unlock' then stop worrying - he or she has been looking at porn on the internet for far longer. #2 Techinically speaking the individuals responsible for giving a game ratings should have made it their responsibility to look over all the code in the game. If they failed to notice something then sue THEM. Thats my (take) two cents.

Donkeljohn
Donkeljohn

I guess that will teach them. All of the disclosures mut be primers for potential buyouts.

maldaen
maldaen

I think it's laughable... everyone commenting here says "the game isn't to blame!" But when you make an INTERACTIVE product that simulates sociopathic violence, it DOES go beyond movies and books and music, because it puts you in that world, actively DOING these things. As such, for being an interactive product, Rockstar should step up to the plate and be accounted for, but since they won't do it themselves, someone's gotta FORCE them. You can't absolve someone of blame just because you don't agree with it. In a situation like the shooting deaths of those police officers, EVERYONE is to blame, not just who you want. The parents of that individual are to blame, the system is to blame, HE is to blame... but so is GTA. As I said, you can't expect that you can put an interactive product out in the market where you engage in outright slaughterous murder of innocent bystanders and naively think that EVERYONE is going to intake the material and subject matter responsibly. Because expecting that out of the American population is incredibly naive. Rockstar does deserve what they get over this, if only because they think there's no consequence for their actions.

SavoyPrime
SavoyPrime

This goes to show you just how dangerous hot coffee can be.

dru26
dru26

Hillary is the one leading the campaign against TT, I haven't heard of any Reps. involved in the attacking of the gaming industry.

Kwiksilva
Kwiksilva

They should be able to make whatever typr of games they want its the people that choose to do the bad things after playing this game that do it not Take Two

chrisdojo
chrisdojo

who cares. as long as the company that acquires T2 ruins GTA, i'll be happy.

myballstingle
myballstingle

I'VE SEEN WORSE STUFF ON TV. THERE WAS NOTHING WRONG WITH THE "HOT COFFEE" MINI GAME... EVEN IF IT WAS LEFT IN THE GAME AND YOU COULD GET IT WITH OUT A CHEAT CODE OR GAME SHARK. SnowFarmer wrote: Any blow back that Take Two gets over "Hot Coffee" is their own fault. It was a stupid move to leave that content in the game. Hopefully everyotehr game company will take a good hard look at their code before they send it off to production. As for the political feeding frenzy that has formed around "Hot Coffee", GTA in general and Take Two, it's pretty sad that our politicians aren't out dealing with the real issues facing our society. But I don't really expect much out of them that trying to score as many cheap points as they can while doing nothing of real importantance.

myballstingle
myballstingle

GREAT THAT WAY THE COUNTRY CAN BE WORSE OFF THAN IT ALREADY IS. REPUBLICANS ARE WORSE WHEN IT COMES TO STUFF LIKE THIS. I'LL NEVER VOTE REPUBLICAN. dru26 wrote: Remember to thank Hillary, by voting Republican in 08'

myballstingle
myballstingle

THEY'RE NOT THE ONES WHO STARTED THIS. THE GOVERNMENT HAS NO BUSINESS STICKING THEIR FACES IN THIS MATTER. THE GAMES ARE RATED "M", THERE SHOULDN'T BE A PROBLEM. THE GOVERNMENT HAS BEEN ON THIS SAME KICK SINCE THE DAYS OF MORTAL KOMBAT PART ONE... KNOW WHAT THE HELL YOU'RE TALKING ABOUT BEFORE YOU POST. ghostadv wrote: To be honest, I wouldn't feel sad or anything if Take Two went under. They're the ones that started this "games are evil" crap all over politicians, it's time they got their butts kicked for it.

littlemrsnow
littlemrsnow

Well, i must say i have to agree with the GTA series being "Evil" As mentioned befor, GTA has changed games, not in a good way. GTA is definatly over rated, in my opinion i would rate the entire series 1/10. I dont think gaming should be all about swearing, killing and hijacking.. now i know alot of people may not like my post, but im being honest. go to any store and look for a good game without any of this junk in it, only few i can find are the Final Fantasy series Zelda few others, Take the Driver series as an example, started as a racing game, turned into a free rome/mission game, then into yet another "GTA style" game about hijacking cars and killing people. Now i looked forward to Driv3r for quite some time, and i was disapointed in it. And i would agree, GTA changed gaming, and made it appeal to alot less people than it did at first, I like gaming becuase it takes you away from your problems, lets you take control of something, that fact that you can make choices and have some turn out better than another, The fun of exploring huge worlds and such, Now, i would probly be refering to Zelda, in my opinion one of the best series to ever happen to gaming. Now i do like alot of games besides only RPG's and i currently own every system, when i look for a new game to buy it usually takes me quite some time and a few drives to different stores, mainly because every game i see is always based on some gang, killing, gore and such, in my opinion it puts gaming to shame. Now i am a fan of FPS, so i cant say its the killing that bothers me the most, its just the gore and rediculous amounts of blood they add into the games, if im the only person that feels sick when i see blood and guts on the floor, then thats not my fault, i dident make my brain, i cant help how it makes me think. Personally i would find it great if the GTA style games were actually all banned, Of course that is only my opinion, im just one person, I have no hard feelings to anyone who likes these kind of games, and i can imagin people will rant about this post either way. I hope maybe this post will have made some of you think about what i am saying. Also i just want to quote: "GTA series 'caused' that violence?? because some dudes had something wrong with their heads" Yes, it did cause people to go and kill someone, or maybe hijack a car, the game makes it look as if you would get away with it, Some people actually do have things wrong with their heads, they cant think right for themselves, Personally i know a few of them kinds of people, they dont have any disability really, they just cant always think whats right. Thanks for taking the time to read this. -Snow

Ishenain
Ishenain

To be honest. I have to say that in my opinion, that for starters people have the RIGHT to choose whether or not to play games with such high graphical content. That said, I doubt anyone of the users to have posted here actually understand all that much not only about the actual programming side as well as the actual production side. For clarity, I can understand that people want to raise such a ruckis over the issue, since the "adult conspiracy" always catches peoples attention. So having said that, the material accessible via the "hot-coffee" mod, should have been put to review by the Classifications Office. However, being that this content is only accessible via modification to the original game. No one can truly hold them at fault there. The console "cheating" to make the San Andreas content accessible, is more akin to hacking as is the Pc version. The Pc's are just more prevalent in its overall modability. Though I was disheartened to hear of the slain police officers (Though as Americans, that's highly ironic to myself) To honestly say and believe, that violence in entertainment, actually leads to real violence, is a truly horrendous thing to say! How can an administration wage a war: an invasion of a foreign nation, and then still back such a ridiculous witch-hunt??

Myugenjin
Myugenjin

People nowadays are just really stupid and gullible in the U.S. Much in the same way people bash Bush without a single clue of global economics & why wars are fought. The majority of BS in the media like this is because some liberal idiot wants his face and name on TV. America was founded on Christian belief's of free will not the Gov't playing god by removing what "MAY" influence us. I think it's funny how liberals claim Bush is taking away our freedoms when they tradiionally stand for tax hikes, strenuous business regulation's, and dumb laws (like banning violent videogames)( a huge reason why most American Corp. are outsourcing/loosing tech advances in medicine, energy, and electronics to other country's) . Theres allways a 100 other things in someones life that causes them to commit murder ask any psychologist. It's even the same with Google and the child pornography thing. The NSA's Echelon system could track pedofiles just as they track terrorists comm. over the web. Google shouldn't be forced to do the FBI's job just so 3 liberal Senators (Including John Kerry) can get there name put on the "new" amber alert. From an investors point of view and someone who trades stock this is a perfect move for TTWO, their guidance for 2006 with 2K Games alone is going to Rival EA because it has the opportunity for new franchises/endeavors like Morrowind Oblivion!

cichy69
cichy69

"how video games got a bad rep because of this one series that caused so much violence and spawned so many boring clones. " GTA series 'caused' that violence?? because some dudes had something wrong with their heads, that they can't tell the difference between whats video game and what real, got out on the street and killed someone.. and they blame GTA ... just because they owned a version of the game, "owning" the game isn't very good proof that the game caused them to kill someone.. cause probably every second dude owns this game. GTA San Andreas sold more than 5 million copies... if the game would 'cause' people to kill someone.. we would see more then 5 million people running around killing each other.. but that didn't happen. so there must have been some other reason for the killing.. not just the game itself. so don't say that GTA: SA caused "SO MUCH" violence. Almost every game has some level of violence.. To the part with other games cloning GTA.. blame industries were that stupid to copy someones idea of the game.. Bad reputions 'story' was made buy polititians, probably none of them even played those games.. or even know what is about exactly... BTW, im not a take-two , rockstar or gta fanboy... so don't say that i said all that because i 'love' the game so much.. acctualy i dont.. but thats not the point here. ;] THE END CONGRATS, ... and RESPECT to those that acctualy read the post.. :]

lajay03
lajay03

A game???!!! Were talking about a game people! I wish the whole world would just give it a rest already especially the politicians of the great country of ours. They should try to do things that would actually pertain to their job description and help people by being constructive by lowering our TAXES!!! They need to get off the bandwagon of trying to get a share of some of the limelight that they brought about with this so called scandal! Its only because they are trying to get more air time and popularity with the voters so that come election time they can win their election for a new term of office. Simple minded as they are they're forgetting that gamers are of all ages. All of us gamers old enough to vote should take heed and remember which fools are anti-games and give our vote elsewhere!!!!!

thepyrethatburn
thepyrethatburn

"Of course you had to ILLEGALLY modify the game to do this. I really think TT should counter-sue the people suing them for illegally modify their software"........The mod was neither illegal nor did it add anything to the game. The mod was essentially the equivalent of a gameshark code. Leaving the minigame in the PS2 version was semi-understandable but leaving it in the PC was just plain stupid given the fact that any game that hits the PC will be modded, a practice that is encouraged by most developers as it sells more copies of the game. It also didn't help when Rockstar, faced with the consequences of using the judgement of a seven-year-old hooked on crack-laced pixie sticks when they created the minigame in the first place, flatout lied about the nature of the mod..............While politicians who are trying to score brownie points may have been the ones to pull the trigger, Rockstar is the one that loaded the gun and gave it to them.

cheater87
cheater87

i own every GTA from GTA 1 to San andreas even London for the ps1 *puts them in glass case* you will be safe here my GTAs

Wej_accept_it
Wej_accept_it

They'll bounce back, half of the charges really are absured, I mean blaming someone's murder on a videogame? Why not blame TV, or cinema, they're just as violent. Or hell, blame novels, has anyone read something by James Patterson? his books have more gore then Resident Evil 4. And besides, these are the people behind GTA:SA, a game that was above and beyound almost every next gen PC (except of course Half Life 2) and it was based on PS2 technology. Just wait for the developers RockStar North to get their hands on some next gen hardware and software, then we'll see one of the best games of ever, GTA, on PS3!

stovich
stovich

[This message was deleted at the request of the original poster]

dru26
dru26

Remember to thank Hillary, by voting Republican in 08'

azizrulez
azizrulez

take two is in some deep ****

SnowFarmer
SnowFarmer

Any blow back that Take Two gets over "Hot Coffee" is their own fault. It was a stupid move to leave that content in the game. Hopefully everyotehr game company will take a good hard look at their code before they send it off to production. As for the political feeding frenzy that has formed around "Hot Coffee", GTA in general and Take Two, it's pretty sad that our politicians aren't out dealing with the real issues facing our society. But I don't really expect much out of them that trying to score as many cheap points as they can while doing nothing of real importantance.

colinjennison
colinjennison

Kaito is correct. Rock music has nothing to do with the devil, 50 cent isn't causing a rise in gun violence, and NFS didn't cause an increase in real-life speed racing. Oh yeah, and GTA isn't to blame for cops being shot. Politicians will blame whatever they feel people will believe are at fault, then they will promise to rid the world of it, and in return all we need do is vote for thier party. Let's all use our brains here, I hope TT makes it out of this as GTA created the "sandbox game" genre which I'm sure has led to many of the features implemented in games since, and will lead to more great games in the future. Not to mention the GTA games are just plain fun.

8bitantichrist
8bitantichrist

I'm with Hush404 on this one. Maybe EA could get some support if they made a game without the word "Madden" in it that sold 50 million copies.

hush404
hush404

Bahh, they give EA some competition, I'm all for that.

kaito2
kaito2

1.) TT didn't start "the games are evil crap," politicians did. 2.) Whether TT's games are "evil" is not a concern for politicians, unless they are trying to ingore the 2nd Amendment, but for the people buying those games. Period. 3.) Any perceived "bad reputation" that TT has given the game industry as a whole is the result of highly uninformed people not knowing a squat about the industry as a whole. 4.) Having politicians dictate to you what is "good" and what is "evil" shows a serious lack of critical thinking skills 5.) Oh yeah, TT's games are inanimate plastic discs that don't have the power to make you do anything you don't want to do. 6.) Imitating something you saw in a video game, on TV, in a movie, heard in a song, shows a serious lack of even basic critical thinking skills that TT can do zero about.

davahsa
davahsa

Lordofmidnight is right! Why not release games as AO? Even if it's not at Wall-Mart, Just that rating alone would drive up sales. It's not like Suncoast Video don't sell Porn and WTF.... kids under 17 are not supposed to get this stuff anyhow. What hipocrits!

LordOfMidnight
LordOfMidnight

Maybe they'll think about it before they lie again about something being in one of thier games. They denied the "hot coffee" thing to the moon and then they got caught, I think it would have been a lot better for them had they fessed-up early. Now they get to take thier medicine and learn from it.

AdityaN
AdityaN

that depends on the so called society. GTA thrived on its "bad boy" representation, but was a fantastic game, and as all gamers know, the case against gta:sa is just for politicians to further their own interests. I frankly cannot understand what all the hoopla is about, specially since the minigame is just risque, and it requires a cheat device/mod to unlock.