Fri, Nov 11, 2011 | 00:48 GMT
Take-Two to borrow $200 million, spurring acquisition rumours
A sudden spate of borrowing has analysts convinced 2k and Rockstar parent Take Two is about to make an acquisition.
IndustryGamers reports Take Two will issue $200 million in convertible senior notes, to be repaid in 2016. A further $30 million may be offered at a later date to first-round purchasers.
Take Two expects to use the borrowed funds for “general corporate purposes, which may include acquisitions and other strategic investments.”
“We think that an acquisition is imminent, and believe Take-Two is likely exploring an investment in the mobile or social games space,” Wedbush Morgan’s Michael Pachter said.
“We note that digitally delivered content accounted for 25% of net revenue in Q2:12, and management consistently lists digital as a component of the company’s growth strategy.”
In July, EA issued $550 million in notes in order to purchase PopCap.