Take-Two could use some of the profits from GTA VI to go on an acquisition spree
, by Thibaut
Take-Two Interactive is expecting a massive surge following the release of GTA VI. The American publisher projects revenue of $8 billion by March 31, 2027. But what will the company do with such a large sum?
That’s what investors sought to find out during this week’s conference call with Strauss Zelnick. The Take-Two CEO outlined three potential uses for this influx of cash.
First, the company aims to "support organic growth" by funding the development of new titles. Second, there will be a return of capital to shareholders. Finally, these gains could also be used to drive "external growth". This last point refers to the acquisition of other companies.
Zelnick made it clear that these acquisitions would be selective and driven by a genuine creative vision. They would therefore target development studios capable of creating new experiences. The CEO also expressed satisfaction with previous acquisitions.
"I’m proud to say that all of our acquisitions have turned out to be creative and successful in our nearly two-decade period.
That’s pretty breathtaking for corporations, it’s not generally the case. And I think that’s because we’re immensely disciplined. You’re not going to see us doing deals hand over first, but assuming our balance sheet continues to improve, I think you could imagine more inorganic growth in the future as well. And we already said in this release today that we expect to be in a net cash position by the end of this fiscal year."
Source: kotaku.com