Take Two Interactive Software Inc (NASDAQ:TTWO) is spending $250 million to acquire privately-held Social Point S.L This has taken the compromise of $175 million in cash and 1,480,168 unregistered shares of Take-Two common stock. The company has further stated of its diversification of business, expansion of its portfolio and significant enhancement of its position in the fast-growing free-to-play mobile gaming space.
Take-Two Interactive Software has everything to gain from this buyout. First, it will embrace the multiple profitable titles that Social Point currently enjoys in the wider market. Secondly, it has a robust development pipeline, which incorporates a robust development pipeline some of which will be rolled out in the next two years. Besides, the experienced senior management team under the leadership of Horacio Marto, the Chief Executive Officer is spot on.
The transaction is expected to have immediate response to the operating activities
Having been instituted in 2008, Social Point, which is headquartered in Barcelona, Spain, is a highly flourishing free-to-play mobile game developer. Its main focus is on the delivery of high-quality, deeply-engaging entertainment experiences. The success is partially from the more than 180 million downloads of its Dragon City and Monster Legends games. Thus the expectation is that this success will roll over to Take-Two’s current operating services.
Strauss Zelnick, Chairman and CEO of Take-Two says, “We are fortunate to have acquired Social Point in a transaction that is expected to be immediately accretive to net cash provided by operating activities, and to be accretive to net income per share, excluding transaction costs and amortization of intangible assets, in fiscal 2018.”
Social Point’s games are way above many others in the market today
Social Point’s success dates back from 2014 and has constantly charted in the top-100 grossing mobile games in the United States. Despite the increasing competition in mobile gaming, it is one of those companies that have remained loyal to its track record, growing its revenues to multiple hits. On that note over 90% of its 2016 revenue was generated from mobile platforms. A majority of the company’s games are now available in North America, Latin America, and EMEA.
In the meantime, Take-Two Interactive Software’s stock was trading at $53.70 a fall of $0.50 or 0.92%.
Wall Street PR - Winning in 2017!http://wallstreetpr.com
Here’s how to leverage this breakthrough technology…
2017 Most Disruptive Biotech IMLFFhttp://www.financialstrend.com
Disruptive biotech IMLFF decodes targeted drug delivery for stem cells
Enter The $100 Billion Gaming Markethttp://www.financialstrend.com
Gaming industry setup for explosive growth
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of journaltranscript.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.financialstrend.com/disclaimer