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Take-Two is struggling, selling assets and downgrading financial outlook

Posted by: Dan at 12/22/2009 7:08 AM
With GTA IV and it’s two Episodic in its rearview mirror, Take-Two Interactive is finding itself struggling a bit in 2009. Yesterday, the company lowered its financial outlook for the year and announced it was selling off its distribution company, Jack of All Games according to numerous published reports.

Fiscal guidance was revised downward, with revenue revised down by an additional $210 million and another $0.08 cents per share loss tacked on to the previous guidance. Jack of all Games was a wholly-owned subsidiary bought by Take-Two in 2004 (formerly known as Hyde Park Distributors) and is based in West Chester, OH (near Cincinnati). It was sold to Synnex yesterday for $36.5 million and additional incentives, as well as the the rights to distribute all of Take-Two’s catalogue going forward.

While yesterday’s developments certainly don’t spell imminent doom for the company, it would be beneficial for Take-Two to have Red Dead Redemption take off next year or crank out the next installment of Grand Theft Auto real soon.