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Take-Two to borrow $200 million, spurring acquisition rumours

Friday, 11th November 2011 00:48 GMT By Brenna Hillier

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.

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2 Comments

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  1. Yoshi

    Instead of borrowing 200million why not just make a free2play GTA with GTA SA graphics or something and you purchase items, guns etc and level up and all that shit :)

    #1 2 years ago
  2. Talkar

    @1
    You should copyright that shit! xD

    #2 2 years ago