Debunked Rumor Of Sony Acquiring GTA Parent Company Causes Stock Price Jump

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Take-Two Interactive Software, the parent company of Red Dead Redemption 2 developer Rockstar and 2K Games, has had a dramatic increase to its stock price today. The increase stemmed from an apparently erroneous report that Sony was discussing the possibility of acquiring Take-Two Interactive.

First, Market Watch reported that Wedbush Securities analyst Joel Kulina said Sony is currently in "advanced board level discussions to acquire Take-Two Interactive in a mostly cash deal." GameSpot contacted Kulina for clarification, and he expressed frustration with what he says was a misquote, leading him to be "bombarded with calls" about the comment.

"There is nothing behind this story that I've seen," Kulina told GameSpot. "No one has found a source. Market chatter refers to simply what we hear on trading desks--happens daily, just more surprised this has gone viral like it has."

Regardless, the initial comment was enough to kick off a flurry of trading, leading to a stock increase of nearly 7% as of the time of writing. Sony stock is also up slightly, at less than 1%. Kulina said there isn't more to the story than the chatter, but the Take-Two stock jump is likely due to a favorable market position and the teaser released yesterday by Gearbox, which has been widely interpreted as a reference to Borderlands 3. Take-Two's stock price has been on the decline recently, especially in the last month, so it was poised for a rebound.

Most recently, Sony and Rockstar partnered for timed exclusive Red Dead 2 content on PlayStation 4 and a special PS4 Pro console bundle. But Take-Two certainly isn't wedded to one console, having developed games for multiple platforms over the years--some of which never appeared on a Sony console, like Rockstar Presents Table Tennis. Other properties under the Take-Two portfolio include the NBA 2K games, Civilization, and XCOM.

GameSpot reached out to Take-Two Interactive, which declined to comment.

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deactivated-5d762a7e1423c

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Clearly no chance of this occurring. Sony barely has the cash to cover the current market cap of Take-2, not enough for the premium required if there were no other bidders.....and if I recall there is a competitor out there that has been gobbling up studios....and has far, far deeper pockets than Sony....no chance on earth MS would allow this w/o, at a minimum, bidding the price up and out of Sony's reach....now Amazon or Google might take a run as they have the cash to play in this space and want desperately to be there, but it would still be odds-on betting that MS would outbid them.

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Marky360

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Man having games like GTA WWE 2K Borderlands and other exclusive to PlayStation would have sucked and this is coming from someone who owns all 3 major consoles. Sometimes PlayStations suck and it would suck to HAVE to buy one just in order to get all those games. I'd rather play the WWE games in my One X GTA and Borderlands I play on PlayStation because of my friends but any single player release from 2K I'm likely gonna play on my One X for the better visuals so having to be tied to the one system would have sucked balls glad this ain't true.

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GarySan

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Edited By GarySan

Sitting on a vault of 25 billion cash, with PlayStation on top of its game, Sony most definitely can afford Take-Two, but I doubt this is happening. Similar rumours happened during PS3, but it never came to fruition.

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PlaystationZone

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If it’s true Sony has won because phil brought out studios and Sony look at that and Sony might buy studio so means gta6 or RDR3 be playstation exclusives . So no more gta for Xbox . You lost

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m4a5

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@playstationzone: Wow, you need to focus less on being a fanboy, and more on your English lol

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jyml8582

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Edited By jyml8582

If it was true then Sony would surely win out this generation of console war and have a giant head start into the next gen. I have all 3 consoles but I play PS4 much more frequently than I do Xbox One and NS. Granted, Nintendo is in a league of its own, but M$ should take a chapter from this and be more aggressive at acquiring valuable assets, otherwise there won't be another console war for them to participate in.

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Marky360

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@jyml8582:

That'd be terrible tho if Either Sony or Microsoft bought Take 2 and made games like WWE 2K and GTA exclusive that'd suck ass I hope that never happens. What if the next Xbox is garbage but the only way to play GTA 6 that be crap. What if the next PlayStation was shit but the only way to play WWE games that would suck to all hell.

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gamingdevil800

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@jyml8582: I'm sceptical about this rumour but I think it's a case of the companies bread and butter. Sure Microsoft want their gaming division to be successful as possible but would Sony even exist today as one entity if it wasn't for the PS4/Gaming Division putting the company back into profitable?

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DonJuanCorleone

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GTA 6 as a PS5 exclusive, surely that would be the nail in the coffin for Xbox from that point?

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REDShadowG

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Edited By REDShadowG

@donjuancorleone: Hardly. With how hard Microsoft is pushing to make PC and Xbox one platform, plus how willing they are to work with Steam and Nintendo, Xbox/MS will never be pushed in a coffin by Sony.

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WarGreymon77

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Edited By WarGreymon77

I'm a PlayStation fan, but I'm not sure what to make of this. Probably wouldn't be good for consumers in the long run, even Sony boys like myself.

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Slypher9

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This makes sense to Sony... The competition would NEVER get another GTA, Red Dead, NBA 2k etc again.

Investors for Take-Two aren't happy that there stock isn't moving..

Us gamers might look and say well GTA, Red Dead and NBA 2k brings in the $$$$$$, BUT how often is a new GTA or Red Dead released

NBA 2k yearly releases can't carry them, and GTA isn't being sold @ top price (at most probably $20) , and soon Red Dead will start to be discounted to spark sales...

We gamers hear the sales milestone and think a company shouldn't be struggling...

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GarySan

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@slypher9: I don't agree. Let say if Sony does purchase Take Two, all this is doing is securing exclusive content for their console-less future (streaming).

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NSA_Protocol44

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Edited By NSA_Protocol44

@slypher9: I don't see that happening, you do know how much GTA or RDR makes over all platforms? A LOT. GTA franchise alone is worth billions, let alone Borderlands and RDR. Sony ain't buying nothing pall, sorry.

You my friend forgot GTA ONLINE, which makes A LOT of profit on yearly bases. So no, Take 2 has it figured out on how to keep the money flowing. There is a suite sitting on his ass, called, a sales manager.

Can't wait for Borderlands 3 being announced soon wooo.

PS: There is no source that claims Take 2 is struggling. let's not assume things :)

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Barighm

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@slypher9: But much of GTA5's revenue comes from recurring sales, and 2K still averages over a $1 billion in quarterly revenue (I think). Red Dead Online hasn't been available for a full quarter yet and I don't think its operating at 100% right now, so we won't really know the full extent of its impact on 2K's revenue until the next quarterly report (so at the end of this month, I guess).

That said, I can believe this was a stunt to move the stock price. Investors are a fickle bunch. Sadly, given the stock's fall...woah, have to stop myself, here. No free market advice from me!

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Slypher9

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@Barighm: while yes.. BUT that's the problem when you put your company on the stock market.. if the stocks don't move to holders liking they can vote to oust the ceo or for a buyout (depending how much power they have)..

GTA is moving units still but @ what price point, so the profit is minimal..

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videogameninja

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Debunked?!...

:/

SELL, SELL, SELL!!!

-GAMER OF WALLSTREET NINJA APPROVED-

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Barighm

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This isn't as far fetched as I first thought. Turns out Sony has more than enough revenue to cover 2K's entire worth.

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dlCHIEF58

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@Barighm: Revenue does not equal cash on hand. Furthermore Take Two has put in safeguards to prevent any hostile takeover after EA attempted that a few years back.

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Slypher9

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@Barighm: That's because outside of GTA and Read Dead what-else move numbers for take 2? and how often is GTA and Read Dead released?

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Barighm

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@slypher9: Borderlands' total franchise sales are well into megahit territory, and they have a few major sports franchises, but yeah, for the most part, 2K deals in raw volume. Granted, there are a lot of great games under their banner.

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dlCHIEF58

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@Barighm: Except Take Two doesn't own that franchise, Gearbox does (hence the rumors about Aliens Colonial Marines funding being used on Borderlands 2 as it would be more profitable because they own it) and they are still independent. Take Two is only a publisher for that series

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BarcaAzul

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Doubt there is much in this. However with streaming services popping up everywhere you could see moves like this happening.

If this guy knew anything, he would be NDA ED to hell anyway

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pookeynoodle2019

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Why would Sony look for this they only sell Waeboo games, makes no sense !!

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Barighm

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Edited By Barighm

@pookeynoodle2019: Why hasn't this troll been IP banned yet? This is like his third account, all of which are nothing but an endless litany of insults and inflammatory comments.

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pookeynoodle2019

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@Barighm: Troll? I beg your pardon !

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gamingdevil800

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@pookeynoodle2019: Do you identify as a Goblin?

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Gamerforlife96

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@gamingdevil800: lol upvote

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NSA_Protocol44

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Edited By NSA_Protocol44

It's like saying Google is going to buy Amazon, doesn't make sense. Both are huge companies and have A LOT of capita.

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Slypher9

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@nsa_protocol44: actually it makes sense to Sony... The competition would NEVER get another GTA or Red Dead again

Investors for Take-Two i'm sure would approve it because there stock is stagnant at the moment and you have to wait SOOOOOOO LONG for another GTA and RED DEAD

Remember outside of GTA, NBA 2k and RED DEAD Take Two struggles to sell other franchise and Borderlands doesn't happen often either

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Barighm

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@slypher9: Not sure why you believe that. Bioshock has sold 20 million units over its life, half of which come from Infinite alone. Duke Nukem Forever still managed to be profitable despite being such a dud.

I'm not going to research every game they have ever made, but they don't strike me as a publisher that routinely has trouble selling games.

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Slypher9

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@Barighm: YES but remember those sales milestone might be reached AFTER price drops, and so the profit is very small.. And remember take 2 has to keep paying to keep these guys even when games aren't coming out from them for years..

This is clearly why Nintendo hardly drop there game prices.. u can easily reach high sales milestone when u sell quality games for say $20 but your profit is small

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Barighm

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@slypher9: But you didn't say "profit". You said "struggles to sell other franchises". Their games seem to sell just fine on a cursory glance.

Even so, I took a brief look at actual profits, too. Again, I'm not seeing anything to suggest 2K struggles with generating profits. They do seem to have a bad habit of wasting money on marketing, but they still make a profit. I can't explain why they're not as valuable a company as EA or Activision or what have you despite owning GTA and such, but I can say they're generally a profitable company.

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lionheartssj1

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Edited By lionheartssj1

I hope that doesn't come to pass.

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