NEW YORK - Take-Two (NASDAQ:TTWO) Interactive Software, Inc. (NASDAQ:TTWO), a prominent game publisher, disclosed on Tuesday the commencement of a public secondary offering of 2,830,084 shares of its common stock. These shares are currently held by Embracer Group AB and were part of the consideration for Take-Two's recent acquisition of The Gearbox Entertainment Company, Inc. completed on June 11, 2024.
The secondary offering is a resale of shares and Take-Two will not receive any proceeds from this transaction. Goldman Sachs (NYSE:GS) & Co. LLC has been named the sole underwriter for the offering.
Interested investors are directed to review the prospectus included in Take-Two’s shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC) on June 11, 2024. The prospectus and related documents offer comprehensive information about Take-Two, its common stock, and the secondary offering. Copies of these documents may be obtained from Goldman Sachs & Co. LLC.
Take-Two Interactive Software is headquartered in New York City and is known for developing, publishing, and marketing interactive entertainment globally. The company operates through its labels Rockstar Games, 2K, Private Division, and Zynga (NASDAQ:ZNGA). Take-Two delivers products across a range of platforms including console systems, PC, and mobile devices.
In other recent news, Take-Two Interactive has been the center of attention in the gaming industry with several key developments. BofA Securities upgraded the company's stock from Neutral to Buy and raised the price target to $185, citing anticipation of new game releases. Similarly, Roth/MKM reiterated its Buy rating and maintained a price target of $180, highlighting the significance of Take-Two's upcoming title announcements.
On the contrary, Baird slightly reduced its price target for Take-Two to $172 but maintained an Outperform rating, following the delay of the much-anticipated game, GTA VI. Citi retained its Buy rating and a price target of $200, following Take-Two's strong financial results that exceeded market expectations.
Furthermore, BMO Capital Markets kept its Outperform rating and $185 price target, attributing this to the success of NBA 2K24 and the enduring popularity of the Red Dead Redemption and Grand Theft Auto series.
InvestingPro Insights
As Take-Two Interactive Software, Inc. (NASDAQ:TTWO) navigates the secondary offering of shares held by Embracer Group AB, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Take-Two has a market capitalization of approximately $27.17 billion, reflecting its significant presence in the interactive entertainment industry. Despite a challenging period, with a reported negative revenue growth of -0.01% over the last twelve months as of Q4 2024, the company maintains a strong gross profit margin of 54.75%, underscoring its ability to manage costs effectively.
InvestingPro Tips reveal that Take-Two is trading at a high EBITDA valuation multiple and possesses a Price / Book multiple of 4.79, which may suggest a premium valuation compared to industry peers. Analysts have noted the company's low price volatility, indicating a stable stock performance that could appeal to risk-averse investors. Moreover, while the company has not been profitable over the past twelve months, analysts predict that Take-Two will return to profitability this year, offering a potential upside for investors considering the current share offering.
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