Take-Two Interactive Software Inc.: Difference between revisions

Revision as of 15:45, 23 August 2023


Type	Public
Traded as	Nasdaq: TTWO
Industry	Video games
Founded	September 30, 1993
Founder	Ryan Brant
Headquarters	New York City, US
Key people	Strauss Zelnick(chairman and CEO) Karl Slatoff (president) Lainie Goldstein (CFO)
Main products	Borderlands seriesCivilization series Grand Theft Auto series Mafia series Max Payne series NBA 2K series Red Dead series
Main subsidiaries	2KDynamixyz Ghost Story Games Rockstar Games Zynga
Website	take2games.com

Summary^[1]

Take-Two Interactive Software, Inc. is a video game holding company headquartered in New York City, which was established by Ryan Brant in September 1993.
The company possesses two prominent publishing labels, Rockstar Games and 2K, both of which oversee internal game development studios.
As of March 2018, it held the position of the third-largest publicly traded game company in the Americas and Europe, trailing behind only Activision Blizzard and Electronic Arts, boasting an estimated market capitalization of US$13 billion.

Mission & vision^[2]

To be the most creative and innovative entertainment company in the world.
To push boundaries relentlessly and consistently exceed expectations.
To create engaging and immersive experiences for our customers while also cultivating a culture rooted in respect, collaboration, and accountability.
To being a socially responsible company, fully committed to both environmental sustainability and ethical behavior.

Team

Strauss Zelnick: He serves as the founder, chief executive officer, and managing partner of the private equity firm ZMC. Additionally, he holds the roles of chairman and CEO at the video game company Take-Two Interactive, and he previously served as chairman of the media conglomerate CBS Corporation^[3].
Karl Slatoff: He has been the President of Take-Two since May 2013. Before taking on this role, he served as the company's Chief Operating Officer from October 2010 and as Executive Vice President from February 2008. Karl is also a partner at ZelnickMedia, which focuses on various sectors including music, direct marketing, broadcast television and radio, interactive entertainment, and new media^[4].
Lainie Goldstein: She has held the position of Chief Financial Officer at Take-Two since 2007. In this role, she is responsible for supervising various aspects, including finance, accounting, tax, treasury, investor relations, and corporate communications. Prior to this, Lainie served as the Company's Senior Vice President of Finance starting in 2003^[5].

Products

Civilization series: The Civilization series consists of turn-based strategy video games, with its initial release dating back to 1991^[6].
Borderlands series: Borderlands is a video game franchise, characterized as an action role-playing first-person looter shooter, and it unfolds within a space Western science fantasy setting. The franchise is both created and produced by Gearbox Software and published by 2K across various platforms^[7].
Grand Theft Auto series: Grand Theft Auto, often abbreviated as GTA, is an expansive open-world action-adventure crime sandbox video game series. It stands as one of the most enduring and extensive video game franchises, published by Rockstar Games^[8].
Mafia series: Mafia is a series of action-adventure games initially conceived and developed by 2K Czech^[9].
Max Payne series: Max Payne is a neo-noir third-person shooter video game series co-developed by Remedy Entertainment and Rockstar Studios. The series derives its name from its central character, Max Payne, a former New York City police detective who transitions into a vigilante role following the tragic murder of his family by drug addicts^[10].
NBA 2K series: NBA 2K is an annual series of basketball sports simulation video games created by Visual Concepts, starting in 1999. The primary objective of this series is to replicate the sport of basketball, particularly focusing on the National Basketball Association^[11].
Red Dead series: Red Dead is a collection of action-adventure games with a Western theme, published by Rockstar Games^[12].

Revenues^[13]


Year	Revenue (Millions of US$)
2023	$5,350
2022	$3,505
2021	$3,373
2020	$3,089
2019	$2,668
2018	$1,793
2017	$1,780
2016	$1,414
2015	$1,083
2014	$2,351
2013	$1,214
2012	$826
2011	$1,137

The revenue for the quarter ending June 30, 2023, amounted to $1.285 billion, marking a year-over-year increase of 16.54%.
The revenue for the twelve months ending on June 30, 2023, totaled $5.532 billion, reflecting a substantial year-over-year increase of 45.82%.
In 2023, the annual revenue reached $5.35 billion, showcasing a remarkable increase of 52.64% compared to the previous year, 2022.
The annual revenue for 2022 amounted to $3.505 billion, representing a modest but noteworthy increase of 3.91% compared to the preceding year, 2021.
The annual revenue for 2021 stood at $3.373 billion, demonstrating a notable increase of 9.19% compared to the previous year, 2020.

Competitors

Activision Blizzard: Activision Blizzard, Inc. holds membership in both the Fortune 500 and S&P 500. As one of the globe's leading standalone interactive entertainment and gaming companies, we bring joy to hundreds of millions of monthly active users. Our headquarters are situated in Santa Monica, California, and we operate in nearly fifty locations worldwide^[14].
Valve Software: Valve Corporation, commonly referred to as Valve Software, is an American video game developer, publisher, and digital distribution company with its headquarters located in Bellevue, Washington. They are renowned for creating the software distribution platform known as Steam and have developed popular franchises such as Half-Life, Counter-Strike, Portal, Day of Defeat, Team Fortress, Left 4 Dead, and Dota^[15].
Ubisoft: Ubisoft Entertainment SA, a French video game publisher, has its headquarters in Saint-Mandé and boasts development studios across the globe. Among its notable video game franchises are Assassin's Creed, Far Cry, For Honor, Just Dance, Prince of Persia, Rabbids, Rayman, Tom Clancy's, and Watch Dogs^[16].

Stocks

Takes-Two Interactive stock history^[17]

TTWO 12 months forecast^[18]

The 12-month price projections for Take-Two Interactive Software Inc. indicate a median target of 159.00, with a high estimate of 171.00 and a low estimate of 130.00. This median estimate reflects an anticipated increase of +11.27% compared to the recent closing price of 142.90^[18].

DCF

DCF valuation

The total equity value is determined by adding up the present value of future cash flows, which, in this instance, amounts to US$27 billion. The final step involves dividing this equity value by the total number of shares outstanding. When we consider the current share price of US$139, the company seems to be fairly valued, with a slight discount of about 14% compared to its current stock price. It's important to note that valuations are somewhat imprecise tools, much like telescopes - a slight adjustment can result in a completely different perspective^[19].

[1] ttps://en.wikipedia.org/wiki/Take-Two_Interactive

[2] ttps://dcf.fm/blogs/blog/ttwo-history-mission-ownership

[3] ttps://en.wikipedia.org/wiki/Strauss_Zelnick

[4] ttps://www.take2games.com/ir/management/karl-slatoff

[5] ttps://www.take2games.com/ir/management/lainie-goldstein

[6] ttps://en.wikipedia.org/wiki/Civilization_(series)

[7] ttps://en.wikipedia.org/wiki/Borderlands_(series)

[8] ttps://rockstargames.fandom.com/wiki/Grand_Theft_Auto_(series)

[9] ttps://en.wikipedia.org/wiki/Mafia_(series)

[10] ttps://en.wikipedia.org/wiki/Max_Payne

[11] ttps://en.wikipedia.org/wiki/NBA_2K

[12] ttps://en.wikipedia.org/wiki/Red_Dead

[13] ttps://www.macrotrends.net/stocks/charts/TTWO/take-two-interactive-software/revenue

[14] ttps://www.activisionblizzard.com/

[15] ttps://en.wikipedia.org/wiki/Valve_Corporation

[16] ttps://en.wikipedia.org/wiki/Ubisoft

[17] ttps://www.nasdaq.com/market-activity/stocks/ttwo

[:0-18] 18.0 ^18.1 https://money.cnn.com/quote/forecast/forecast.html?symb=ttwo

[19] ttps://simplywall.st/stocks/us/media/nasdaq-ttwo/take-two-interactive-software/news/calculating-the-intrinsic-value-of-take-two-interactive-soft

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@@ Line 2: / Line 2: @@
 {| class="wikitable"
 |+
-|Type
+|'''Type'''
 |Public
 |-
-|Traded as
+|'''Traded as'''
 |Nasdaq: [https://www.nasdaq.com/market-activity/stocks/ttwo TTWO]
 |-
-|Industry
+|'''Industry'''
 |Video games
 |-
-|Founded
+|'''Founded'''
 |September 30, 1993
 |-
-|Founder
+|'''Founder'''
 |Ryan Brant
 |-
-|Headquarters
+|'''Headquarters'''
 |New York City, US
 |-
-|Key people
+|'''Key people'''
 |Strauss Zelnick(chairman and CEO)
@@ Line 27: / Line 27: @@
 Lainie Goldstein (CFO)
 |-
-|Main products
+|'''Main products'''
 |Borderlands seriesCivilization series
@@ Line 40: / Line 40: @@
 Red Dead series
 |-
-|Main subsidiaries
+|'''Main subsidiaries'''
 |2KDynamixyz
@@ Line 49: / Line 49: @@
 Zynga
 |-
-|Website
+|'''Website'''
 |[https://www.take2games.com/ take2games.com]
 |}
@@ Line 55: / Line 55: @@
 === Summary<ref>https://en.wikipedia.org/wiki/Take-Two_Interactive</ref> ===
-* Take-Two Interactive Software, Inc'''.''' is an American video game holding company based in New York City founded by Ryan Brant in September 1993.
+* Take-Two Interactive Software, Inc. is a video game holding company headquartered in New York City, which was established by Ryan Brant in September 1993.
-* The company owns two major publishing labels, Rockstar Games and 2K, which operate internal game development studios.
+* The company possesses two prominent publishing labels, Rockstar Games and 2K, both of which oversee internal game development studios.
-* As of March 2018, it is the third-largest publicly traded game company in the Americas and Europe after Activision Blizzard and Electronic Arts, with an estimated market cap of US$13 billion.
+* As of March 2018, it held the position of the third-largest publicly traded game company in the Americas and Europe, trailing behind only Activision Blizzard and Electronic Arts, boasting an estimated market capitalization of US$13 billion.
 === Mission & vision<ref>https://dcf.fm/blogs/blog/ttwo-history-mission-ownership</ref> ===
 * To be the most creative and innovative entertainment company in the world.
-* To constantly push boundaries and exceed expectations.
+* To push boundaries relentlessly and consistently exceed expectations.
-* To create engaging and immersive experiences for our customers To foster a culture of respect, collaboration and accountability.
+* To create engaging and immersive experiences for our customers while also cultivating a culture rooted in respect, collaboration, and accountability.
-* To be a socially responsible company, committed to environmental sustainability and ethical behaviour.
+* To being a socially responsible company, fully committed to both environmental sustainability and ethical behavior.
 === Team ===
-* Strauss Zelnick: He is the founder, chief executive officer, and managing partner of private equity firm ZMC, the chairman and CEO of video game company Take-Two Interactive, and the former chairman of media conglomerate CBS Corporation<ref>https://en.wikipedia.org/wiki/Strauss_Zelnick</ref>.
+* Strauss Zelnick: He serves as the founder, chief executive officer, and managing partner of the private equity firm ZMC. Additionally, he holds the roles of chairman and CEO at the video game company Take-Two Interactive, and he previously served as chairman of the media conglomerate CBS Corporation<ref>https://en.wikipedia.org/wiki/Strauss_Zelnick</ref>.
-* Karl Slatoff: Karl Slatoff is the President of Take-Two, a role that he assumed in May 2013. He previously served as the Company’s Chief Operating Officer beginning in October 2010, and prior to that, held the position of Executive Vice President beginning in February 2008. Karl is a partner at ZelnickMedia, which specializes in the areas of music, direct marketing, broadcast television and radio, interactive entertainment and new media<ref>https://www.take2games.com/ir/management/karl-slatoff</ref>.
+* Karl Slatoff: He has been the President of Take-Two since May 2013. Before taking on this role, he served as the company's Chief Operating Officer from October 2010 and as Executive Vice President from February 2008. Karl is also a partner at ZelnickMedia, which focuses on various sectors including music, direct marketing, broadcast television and radio, interactive entertainment, and new media<ref>https://www.take2games.com/ir/management/karl-slatoff</ref>.
-* Lainie Goldstein: Lainie Goldstein is the Chief Financial Officer of Take-Two, a role that she assumed in 2007. In this capacity, she is responsible for overseeing finance, accounting, tax, treasury, investor relations and corporate communications. Lainie previously served as the Company’s Senior Vice President of Finance beginning in 2003<ref>https://www.take2games.com/ir/management/lainie-goldstein</ref>.
+* Lainie Goldstein: She has held the position of Chief Financial Officer at Take-Two since 2007. In this role, she is responsible for supervising various aspects, including finance, accounting, tax, treasury, investor relations, and corporate communications. Prior to this, Lainie served as the Company's Senior Vice President of Finance starting in 2003<ref>https://www.take2games.com/ir/management/lainie-goldstein</ref>.
 === Products ===
-* Civilization series: Civilization is a series of turn-based strategy video games, first released in 1991<ref>https://en.wikipedia.org/wiki/Civilization_(series)</ref>.
+* Civilization series: The Civilization series consists of turn-based strategy video games, with its initial release dating back to 1991<ref>https://en.wikipedia.org/wiki/Civilization_(series)</ref>.
-* Borderlands series: Borderlands is an action role-playing first-person looter shooter video game franchise set in a space Western science fantasy setting, created and produced by Gearbox Software and published by 2K for multiple platforms<ref>https://en.wikipedia.org/wiki/Borderlands_(series)</ref>.
+* Borderlands series: Borderlands is a video game franchise, characterized as an action role-playing first-person looter shooter, and it unfolds within a space Western science fantasy setting. The franchise is both created and produced by Gearbox Software and published by 2K across various platforms<ref>https://en.wikipedia.org/wiki/Borderlands_(series)</ref>.
-* Grand Theft Auto series: Grand Theft Auto, commonly referred to as GTA, is an open world action-adventure crime sandbox video-game series, as well as one of the longest video-game arcade series, published by Rockstar Games<ref>https://rockstargames.fandom.com/wiki/Grand_Theft_Auto_(series)</ref>.
+* Grand Theft Auto series: Grand Theft Auto, often abbreviated as GTA, is an expansive open-world action-adventure crime sandbox video game series. It stands as one of the most enduring and extensive video game franchises, published by Rockstar Games<ref>https://rockstargames.fandom.com/wiki/Grand_Theft_Auto_(series)</ref>.
-* Mafia series: Mafia is a series of action-adventure games originally created and developed by 2K Czech<ref>https://en.wikipedia.org/wiki/Mafia_(series)</ref>.
+* Mafia series: Mafia is a series of action-adventure games initially conceived and developed by 2K Czech<ref>https://en.wikipedia.org/wiki/Mafia_(series)</ref>.
-* Max Payne series: Max Payne is a neo-noir third-person shooter video game series developed by Remedy Entertainment and Rockstar Studios. The series is named after its protagonist, Max Payne, a New York City police detective turned vigilante after his family was murdered by drug addicts<ref>https://en.wikipedia.org/wiki/Max_Payne</ref>.
+* Max Payne series: Max Payne is a neo-noir third-person shooter video game series co-developed by Remedy Entertainment and Rockstar Studios. The series derives its name from its central character, Max Payne, a former New York City police detective who transitions into a vigilante role following the tragic murder of his family by drug addicts<ref>https://en.wikipedia.org/wiki/Max_Payne</ref>.
-* NBA 2K series: NBA 2K is a series of basketball sports simulation video games developed by Visual Concepts and released annually since 1999. The premise of the series is to emulate the sport of basketball, and more specifically, the National Basketball Association<ref>https://en.wikipedia.org/wiki/NBA_2K</ref>.
+* NBA 2K series: NBA 2K is an annual series of basketball sports simulation video games created by Visual Concepts, starting in 1999. The primary objective of this series is to replicate the sport of basketball, particularly focusing on the National Basketball Association<ref>https://en.wikipedia.org/wiki/NBA_2K</ref>.
-* Red Dead series: Red Dead is a series of Western-themed action-adventure games published by Rockstar Games<ref>https://en.wikipedia.org/wiki/Red_Dead</ref>.
+* Red Dead series: Red Dead is a collection of action-adventure games with a Western theme, published by Rockstar Games<ref>https://en.wikipedia.org/wiki/Red_Dead</ref>.
-=== Revenues ===
+=== Revenues<ref>https://www.macrotrends.net/stocks/charts/TTWO/take-two-interactive-software/revenue</ref> ===
+{| class="wikitable"
+|+
+|'''Year'''
+|'''Revenue (Millions of US$)'''
+|-
+|2023
+|$5,350
+|-
+|2022
+|$3,505
+|-
+|2021
+|$3,373
+|-
+|2020
+|$3,089
+|-
+|2019
+|$2,668
+|-
+|2018
+|$1,793
+|-
+|2017
+|$1,780
+|-
+|2016
+|$1,414
+|-
+|2015
+|$1,083
+|-
+|2014
+|$2,351
+|-
+|2013
+|$1,214
+|-
+|2012
+|$826
+|-
+|2011
+|$1,137
+|}
+* The revenue for the quarter ending June 30, 2023, amounted to $1.285 billion, marking a year-over-year increase of 16.54%.
+* The revenue for the twelve months ending on June 30, 2023, totaled $5.532 billion, reflecting a substantial year-over-year increase of 45.82%.
+* In 2023, the annual revenue reached $5.35 billion, showcasing a remarkable increase of 52.64% compared to the previous year, 2022.
+* The annual revenue for 2022 amounted to $3.505 billion, representing a modest but noteworthy increase of 3.91% compared to the preceding year, 2021.
+* The annual revenue for 2021 stood at $3.373 billion, demonstrating a notable increase of 9.19% compared to the previous year, 2020.
 === Competitors ===
-* Activision Blizzard: Activision Blizzard, Inc. is a member of the Fortune 500 and S&P 500. As one of the world’s most successful standalone interactive entertainment and gaming corporations, we delight hundreds of millions of monthly active users. We are headquartered in Santa Monica, California, and have nearly fifty operations around the world<ref>https://www.activisionblizzard.com/</ref>.
+* Activision Blizzard: Activision Blizzard, Inc. holds membership in both the Fortune 500 and S&P 500. As one of the globe's leading standalone interactive entertainment and gaming companies, we bring joy to hundreds of millions of monthly active users. Our headquarters are situated in Santa Monica, California, and we operate in nearly fifty locations worldwide<ref>https://www.activisionblizzard.com/</ref>.
-* Valve Software: Valve Corporation, also known as Valve Software, is an American video game developer, publisher, and digital distribution company headquartered in Bellevue, Washington. It is the developer of the software distribution platform Steam and the franchises Half-Life, Counter-Strike, Portal, Day of Defeat, Team Fortress, Left 4 Dead, and Dota<ref>https://en.wikipedia.org/wiki/Valve_Corporation</ref>.
+* Valve Software: Valve Corporation, commonly referred to as Valve Software, is an American video game developer, publisher, and digital distribution company with its headquarters located in Bellevue, Washington. They are renowned for creating the software distribution platform known as Steam and have developed popular franchises such as Half-Life, Counter-Strike, Portal, Day of Defeat, Team Fortress, Left 4 Dead, and Dota<ref>https://en.wikipedia.org/wiki/Valve_Corporation</ref>.
-* Ubisoft: Ubisoft Entertainment SA is a French video game publisher headquartered in Saint-Mandé with development studios across the world. Its video game franchises include Assassin's Creed, Far Cry, For Honor, Just Dance, Prince of Persia, Rabbids, Rayman, Tom Clancy's, and Watch Dogs<ref>https://en.wikipedia.org/wiki/Ubisoft</ref>.
+* Ubisoft: Ubisoft Entertainment SA, a French video game publisher, has its headquarters in Saint-Mandé and boasts development studios across the globe. Among its notable video game franchises are Assassin's Creed, Far Cry, For Honor, Just Dance, Prince of Persia, Rabbids, Rayman, Tom Clancy's, and Watch Dogs<ref>https://en.wikipedia.org/wiki/Ubisoft</ref>.
-=== Stocks<ref>https://www.nasdaq.com/market-activity/stocks/ttwo</ref> ===
+=== Stocks ===
-[[File:TT.PNG|center|thumb|600x600px]]
+[[File:TT.PNG|center|thumb|600x600px|Takes-Two Interactive stock history<ref>https://www.nasdaq.com/market-activity/stocks/ttwo</ref>]]
+[[File:Ftti.png|center|thumb|TTWO 12 months forecast<ref name=":0">https://money.cnn.com/quote/forecast/forecast.html?symb=ttwo</ref>]]
+The 12-month price projections for Take-Two Interactive Software Inc. indicate a median target of 159.00, with a high estimate of 171.00 and a low estimate of 130.00. This median estimate reflects an anticipated increase of +11.27% compared to the recent closing price of 142.90<ref name=":0" />.
 === DCF ===
+[[File:Dcftt.png|center|thumb|600x600px|DCF valuation]]
-=== Risks ===
+The total equity value is determined by adding up the present value of future cash flows, which, in this instance, amounts to US$27 billion. The final step involves dividing this equity value by the total number of shares outstanding. When we consider the current share price of US$139, the company seems to be fairly valued, with a slight discount of about 14% compared to its current stock price. It's important to note that valuations are somewhat imprecise tools, much like telescopes - a slight adjustment can result in a completely different perspective<ref>https://simplywall.st/stocks/us/media/nasdaq-ttwo/take-two-interactive-software/news/calculating-the-intrinsic-value-of-take-two-interactive-soft</ref>.