Rough times for Take-Two on the horizon
While Take-Two has one of the biggest industry franchises in their pockets -- Grand Theft Auto -- they are anything but financially secure. Grand Theft Auto IV's delay to early next year has proven to be disastrous for the struggling publisher's welfare.
The Street reports that the company disclosed it had increased its five-year revolving credit facility to $140 million from $100 million and secured it using the company's assets in both Europe and the U.S. as of last month.
Simply put, the company needs GTA IV to sell millions of copies as soon after its release as possible in order to recoup their mounting losses.
It appears the title will do just that, if analysts are to be regarded as somewhat reliable.
According to Evan Wilson of Pacific Crest Securities, "There are several catalysts lining up for Take-Two in the next five to six months. Take-Two is one of the few companies that has a very significant game coming out...investors will see it...do well on a relative basis."
Take-Two's shares rose by approximately 5.7% after his prediction last month, but have dropped around 10% throughout the entire year. We'll see if Rockstar's GTA IV can help recoup those losses come early next year.