Take-Two buys TDK

September 03, 2003 - After a year of quiet rumors following Take-Two's interest in acquiring companies such as THQ and even Midway, the New York publisher today unveiled its plan to buy an entirely different company instead. The publisher of games such as Grand Theft Auto III and Max Payne is diversifying its game portfolio with a $22.7 million deal to buy TDK Mediactive and in doing so has demonstrated its interest in expanding its range of games as well as pleasing the hounds of Wall Street.

Take-Two will acquire all shares of outstanding common stock of TDK and will buy the company for approximately $22.7 million. The financial details of the deal include Take-Two buying $0.55 per share for each of the 23,005,885 shares outstanding (about $12.6 million); the purchase of debt of about $9.9 million ($1.9 million in cash and $8 million in restricted shares of common stock of Take-Two); and about $0.2 million to retire outstanding stock options.

In a separate agreement, Take-Two has secured TDK's North American distribution rights for games including The Haunted Mansion (October), Star Trek: Shattered Universe and Corvette (both slated for October).

Other titles of interest that surely piqued Take-Two's interest were TDK's rights to develop, publish and distribute Shrek, Pirates of the Caribbean, The Land Before Time, Robotech, The Muppets, Ultimate Fighting Championship and Masters of the Universe.

"In a little over two years, TDK Mediactive has become a meaningful player in the interactive entertainment industry by identifying, securing and building strong video game franchises based on popular, well established licensed brands," said Take-Two Interactive's Chief Executive Officer Jeffrey C. Lapin. "The addition of TDK's mass market and children's licensed properties to Take-Two's properties will complement our portfolio of proprietary brands, and provide an excellent platform for Take-Two to further expand and diversify its product offerings. In addition, our proven product development and marketing capabilities will enhance TDK's product offerings and our distribution resources will provide additional outlets for TDK's products."

"As a leader in the interactive entertainment industry, Take-Two's infrastructure, financial resources and successful track record will enable us to significantly expand our business," said Vincent Bitetti, CEO of TDK Mediactive. "We appreciate the cooperation of TDK USA, our majority shareholder, in facilitating and supporting this transaction."

TDK Mediactive will become a subsidiary of Take-Two, and Vincent J. Bitetti, TDK Mediactive CEO, will be joined by several other key TDK Mediactive executives at Take-Two.

source: cube.ign.com

opinions and thoughts!

Har har, Take-Two got SO ripped off! I wouldn't want to aquire TDK. The last above-poor game they made was Robotech, and that was rather unwhelming, wasnit?

is that the minidisc company?

*loses track*

There is a lot of buying out going on in the industry, less money, more big companies = less small companies and industry being streamlined. I'm not sure if it is a good or a bad thing.

For one, less companies means we don't get so much crap, but then we have less choice. Also, with so many companies it is just plain unfair, they don't stand a chance. Sigh

Yup tis sad when there is no more room for the little guy..