Take-Two Interactive Software, Inc. is an American video game holding company based in New York City founded by Ryan Brant in September 1993.
[2] Take-Two's combined portfolio includes franchises such as BioShock, Borderlands, Civilization, Grand Theft Auto, NBA 2K, WWE 2K, and Red Dead among others.
He began his career in May 1991, working for his father as the chief operating officer of Stewart, Tabori & Chang, a publisher of illustrated books, until August 1993.
[4] Take-Two was incorporated under the Delaware General Corporation Law on September 30, 1993, with Brant (21 years old at the time) as chief executive officer (CEO).
[10][11] By June 1994, the company had acquired and absorbed InterOptica, a software publisher owned by Wan Chai and headed by Catherine Winchester (later Heald); the latter became Take-Two's first president.
[4] Take-Two hired Dennis Hopper, among others, to star in parts for Hell: A Cyberpunk Thriller (1994), which sold over 300,000 copies over the following year and established profit for the company.
[17] Take-Two expanded in its Latrobe location and, in September 1996, took over the second floor of its office building, which had been occupied by the Chestnut Ridge Chapter of the American Red Cross.
[20] The company had its initial public offering (IPO) on April 15, 1997, being listed under the ticker symbol TTWO on the NASDAQ stock exchange.
Seeing the opportunity to capture attention on the game, Brant had initiated the acquisition of BMG as to acquire the Grand Theft Auto property, and at the same time, contacted BMG's Sam and Dan Houser (both instrumental to getting Grand Theft Auto to market), Terry Donovan, and Jamie King to found a new label within Take-Two, called Rockstar Games for which to develop more titles like it.
[30][31][32] In 1999, Take-Two acquired DMA Design (ultimately renamed Rockstar North), and invested into Gathering of Developers and Bungie (eventually transferred over to Microsoft Game Studios).
[51] It also acquired PAM Development from the Gaia Capital Group for US$11.4 million, giving them access to the Top Spin series of tennis games.
The SEC's formal complaint found that the company had purportedly sold products to distributors as a "parking transaction" for a quarter, as to artificially increase their revenues for investors, which it estimated was a US$60 million fraud.
Brant pleaded guilty to falsifying business records, but agreed to co-operate with the SEC and instead of receiving up to four years in prison, was fined US$7.3 million and barred from holding any "control management positions" in a publicly traded company.
[5][57] Further troubling Take-Two during this period was criticism and legal actions taken against the Hot Coffee mod, a user-made modification to Grand Theft Auto: San Andreas that unlocked a hidden graphic sex scene that was built into the game, with concerned politicians and consumers stating the scene belied the game's ESRB content rating.
[62][63] Due to the various SEC investigations and the Hot Coffee controversy, investors in Take-Two discussed the possibility of taking over the company at its next board meeting in March 2007 and oust the current management.
[65] Industry analyst Michael Pachter stated that a takeover would be best for Take-Two, as the present management "completely abdicated any responsibility for the oversight of the options-granting policy.
"[66] CEO Paul Eibeler, who had replaced Brant after his resignation, had tried to find a buyer for Take-Two after the investors filed their intent with the SEC.
With the move of the 2K labels to Novato, the executive, management, distribution and sales areas were evaluated to align these by business discipline rather than geography.
[77] In September 2008, Take-Two established an outsourcing agreement with Ditan Distribution LLC, at the time owned by Cinram, a Canadian manufacturer of optical media.
[78] Subsequently, in December 2009, Take-Two sold Jack of All Games to Synnex for about US$43 million, leaving the distribution market and focusing solely on development and publishing.
Grand Theft Auto V has since sold nearly 100 million units by 2018, making it one of the most successful video games ever and bringing an estimated US$6 billion to Take-Two, increasing its stock value by more than 600%.
[97] According to Dan Houser, Rockstar Games required to expand in the two companies' shared headquarters and thus asked the Take-Two executives to move.
[99] On March 9, 2018, S&P Global announced the addition of Take-Two Interactive to the S&P 500, joining two other major video game publishers EA and Activision Blizzard.
Analysts estimated that this represented at least 15% of Take-Two's revenue from the sale of NBA 2K games, atypical of other license deals, due to the growing popularity of the series.
[105] A then-yet-to-be named studio under the 2K brand in the Silicon Valley region of the San Francisco Bay Area was established by Take-Two in February 2019.
[109] All parties involved in the case successfully executed a confidential settlement, with each agreeing to bear its own costs and expenses, including, without limitation, attorney's fees.
While the offer awaited regulatory approval and was expected to be complete by early 2021, both Take-Two and Codemasters' board of directors confirmed the deal.
[119][120][121] However, Take-Two's bid was subsequently trumped by Electronic Arts in December 2020, which offered US$1.2 billion (US$7.98 per share), and agreed to acquire Codemasters.
[127] Later that month, 2K acquired the games division of HookBang based in Austin, Texas, which had supported work on the NBA 2K series in the past.
With this structure been in place since 1997–1998, each labels are incorporated principal operating businesses and have a higher degree of autonomy and each with their own infrastructure and resources, management, and profit and loss strategies.