avatar
Computers, General news, Communications, Internet, Finance

Grand Theft Auto IV Revs Up Take-Two Profit


Take-Two on Thursday reported third-quarter sales that doubled on the strength of its popular game title Grand Theft Auto IV.

The New York City games publisher reported third-quarter net income of $51.8 million on revenue of $433.8 million, compared with a net loss of $58.5 million on $206.4 million in revenue in the same quarter a year ago.

Take-Two shares on Friday picked up $0.38, or 1.64 percent, at $23.61.

The company's earnings report comes after a merger offer from games giant EA fell through August 18, after the two were unable to reach a deal. The companies have since agreed to re-enter into negotiations.

Industry experts say that Take-Two anticipated strong results on sales of Grand Theft Auto IV, driving a higher valuation for the company, and that it may have been holding out for a better offer. 

Take-Two results included $5.4 million in legal expenses related to its acquisition bid from EA as well as $12.6 million for stock-based compensation.

The games company said its popular Grand Theft Auto IV title had sold over 10 million copies by August 16. Other top sellers that helped propel Take-Two included Sid Meier’s Civilization Revolution.

The company’s games are available on PCs, PlayStations, PSPs, Xbox 360s, Nintendos Wiis, Gamecubes, and DS devices, among others.