Take-Two takes out $140 million

Grand Theft Auto publisher grabs loan to support work during the holiday season and beyond in its UK and US operations.

Take-Two Interactive Software has closed a deal which will provide it with the option to borrow up to $140 million over the next five years. The deal also allows the company to borrow up to $25 million for use in the UK, where the loan is worth around £12.1 million. The money, which comes from lenders such as Citigroup and Wells Fargo Foothill, will be used to fund working capital, capital expenditures, and other general corporate purposes.

Take-Two has been on a bit of a roller coaster ride over the past year or so, with the highly anticipated Grand Theft Auto IV slipping from October to next year and Manhunt 2 being banned in the UK, where an appeal is pending. An edited version of the game was then given an M for Mature rating in the US, but several senators has since petitioned to have the rating revoked. The release of BioShock has helped buoy the finances of the company, however, and it recently settled the "Hot Coffee" suits.

Ben Feder, chief executive officer of Take-Two, commented, "We look forward to further strengthening our financial position with the release of our solid 2008 product slate, including Grand Theft Auto IV in our fiscal 2008 second quarter."

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86 comments
wespb34
wespb34

im pretty sure this will be the best GTA yet, not just because of the hype, but because of all the time and money that they are putting into the game. they dont wanna bring out some half assed project and dissapoint everyone

goosey7683
goosey7683

I think it's great on what Take-Two is doing. I dont think some people...NOT ALL PEOPLE! know what Take-Two is doing to make this game as realalistic and as beatiful as possable. I think Take-Two is doing a great job!!!

maaly81
maaly81

is that why it got delayed cuz of the PS3 version. that version is a waste of time and money anyway. i could have been stealing cars and slapping people and i have to wait till whenever now.

DeLashmutt1980
DeLashmutt1980

I just hope that GTA IV is as good as the hype. Every article we read talks about "smart" business moves. Mergers and aquisitions in the game world are all too common. $140 million you say? That's great. Don't screw up GTA IV just to stretch out that money as far as you can. Lets keep it about the games, guys! Focus.

Homerj
Homerj

I hope kowtowing to the demands of Sony are worth that $120mil loan. If they had just delayed the PS3 version only (or released the PS3 version as-is) like a lot of other smart devs have done, they could be raking in the profits over the holidays. A lot of pain and suffering for a max of 1 million copies.

mrkame16
mrkame16

Gta 4 is going to put them over the top again, and they know it! I can wait and thats the only game that im going to reserve the special edition and i havent reserved any game in Years...

KingKoop
KingKoop

Nice work TT, despite never being outta the news they still rock.

puppiemaster
puppiemaster

including Grand Theft Auto IV in our fiscal 2008 second quarter. Hope thats not July to September. Alright crusader8463, I don't know what part of the world you are from, and frankly I don't really care. You say America ruined Manhunt for the rest of the world, but at least they didn't ban it like some little island countries. Don't be bitter, when we ruled the world people actually liked us.

Crazy_Kid314
Crazy_Kid314

GTA IV will mesage this knot out of the hairy back of Take 2 soon enough.

goosey7683
goosey7683

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

vergilskater
vergilskater

oh well,I'll just have to wait.I'm going to go play AC and Uncharted,later!

Ra-Devil
Ra-Devil

still don't get the whole GTA thrill by today's standards. I mean, we got all sorts of games that are sand-box games that have better gameplay mechanics. GTA was just the first to capitalize on the concept, but I can't stand the gameplay. Maybe it's just me. Anyway, hope they can make a game people can enjoy.

Slash_out
Slash_out

jimmarn GTA second quarter???????? it says Q1 here on gamespot... have i missed something? i'd like the game as fast as possible... ------- Second quarter of their financial year. It's not the same of an actual year. The financial year of some compagny finish in march for example, so january, february and march are in the last quarter of their financial year, even though it's in the first of the "real year".

ctg867
ctg867

Well hopefully GTA IV gets a nice Spring release and it'll be great. Rockstar + $500 million

mariokart64fan
mariokart64fan

well interisting , solid 2008 slate? if theres more games other then gta iv coming yea,, but if not, that isnt solid could their be another game

slaughinghouse
slaughinghouse

The sooner Rockstar can get out from under Take-Two and their entire corporate mismanagement, the better....

jimmarn
jimmarn

GTA second quarter???????? it says Q1 here on gamespot... have i missed something? i'd like the game as fast as possible...

josephreynii
josephreynii

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

Dan2002sk8er
Dan2002sk8er

so Leisure Suit Larry is OK but Manhunt 2 is bad???? I'm sorry to be raised in a society where you can kill hundreds of people in a Video Game and call it Call of Duty and nobody questions it, Where your video game character goes around and plays mini games to have sex with other characters, but you can NOT make a game where you sneak around and violently kill people, or spill coffee on a girl (maybe you could if your name is NOT Rockstar) it seems that they rate you on your name and not content. ESRB sucks. The ESRB only ruins the creative minds of the video game industry. They make Hard working companies take out huge loans to please us, the consumers.

Ztoky
Ztoky

So want the new Grand theft auto!

Pete5506
Pete5506

Can't wait for the new GTA

oscaromarjp
oscaromarjp

Anyway, GTA IV can pay any debts the company could have...

blancobo
blancobo

You borrow money not to compromise your capital... it is really a strategic move... MANY banks, developers, companies, etc do it. I am not surprised AT ALL by this news.

tjdeep_2007
tjdeep_2007

gta4.......makers,,,,,,,,,.....hmm strange news,,,,,,,,,they should release gta4 as soon as possible,,,,,,,,,,,

Bizzare10
Bizzare10

ahm assets = liabilities + equity. It is all business. Nothing is wrong. COmpanies take out loans

Chief_Kuuni
Chief_Kuuni

wow, why borrow? interesting, seems like they'd have enough in house but who knows

RaiKageRyu
RaiKageRyu

Is Take-Two really in need of that much money?

crusader8463
crusader8463

[This message was deleted at the request of a moderator or administrator]

sniper_99
sniper_99

Kinda odd to hear Rockstar in financial trouble. Hopefully they'll recuperate their loss when GTA 4 comes out

bernieberry
bernieberry

Sounds to me like it takes money to make money. They will survive.

HAMMER261266
HAMMER261266

It's hard to believe that they're in financial trouble with as many games as they've sold. I guess all the law suits have taken their toll.

Chirico_Cuvie
Chirico_Cuvie

GTA 4 better be at least as good as Saints' Row to keep anyone interested. Manhunt 2 ruined the franchise, and unless you make that Escape from New York Game soon you may be in a bit of trouble. Where the Hell is L.A. Noir too?

skirlnik
skirlnik

@santiagochile: Just like the Wii version of Manhunt 2 was the better version? Not according to the reviews, but what do they know, right?

sickside6
sickside6

Ok, I just hope GTA IV isn't delayed anymore

stevo-millz
stevo-millz

I want to see some more info about bully for the wii! theres been no new stuff about it for a bit.

PSLinux
PSLinux

their reputation also works with them, every game they have published/produced has sold very well in more than one country

kdt55
kdt55

Give me GTA4

DemannameD
DemannameD

There biggest problem is their reputation at this point... I mean they can't release a game with out someone pitching a fit. Its really sad. There games a great, but they can't even make them the way they want. Why can't they just have rated R games? F the ERSB! We need a better system of not rating the games; but a better system of keeping them out of the wrong hands... As well there should be huge fines for buying games for underage people. So that some dumb ass old lady can't by her 13 year old grand son a M rated game and then sue the company that made it.... Thats so retarded. AMERICA NEEDS TO GET BACK TO BEING RESPONSIBLE FOR ITS ACTIONS. If you buy a violent game for a kid and he kills someone because you bought him that game and he played. YOU GET FINED, HE GOES TO JAIL.

razu_gamer
razu_gamer

@ben_whatever_blah: Yet GTA san andreas sold in the millions?!?! With crappy PS2 graphics?!?! As for take two, they must be in some sort of trouble for taking out a loan. Maybe they are insecure about the sales of their games.

yukine
yukine

They should be able to pay most of it back with the release of GTAIV.

Supernova_86
Supernova_86

@nintendokid: The Wii has a better GPU than the GameCube, even though the core architecture is the same. Oh, and the 88mb system memory is shared with the GPU as well, the so the Wii has extra memory for the GPU. The 3mb total frame buffer is completely different.

---n00b_kid---
---n00b_kid---

@GIF Episodes 1 and 2 are exclusive to the 360, since M$ paid R* a lot of money. These 2 episodes will not appear on the ps3.

cometkd
cometkd

i think that the video industry should be able to put whatever they want without restrictions! it is just a video game people!

waleedarshad
waleedarshad

they will earn 140 million dollars on the first week of GTA 4 release and then some more

imperial_agent
imperial_agent

hopefully they'll re-coup some of their costs when Bully:Scholarship edition comes out on the Wii and Xbox360. I know I'm going to defiantely pick it up for the 360.