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Supreme Cmdr

Take 2 in trouble. Again

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quote:

Originally posted by Forever Light:

It takes you to reg for the NY times since you dont have a registration.

Yeah I know and I ain't going to register either. Wish I knew some mind tricks: "You don't need to see my registration"..."We don't need to see his registration... move along.. move along".

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quote:


SAN FRANCISCO, Dec. 18 - Take-Two Interactive, maker of the hit video game series Grand Theft Auto, disclosed on Thursday that federal regulators plan to file a civil suit against the company, its chairman and two former executives over questionable accounting practices.

Take-Two said the prospective enforcement action stemmed from an inquiry first disclosed in 2002, shortly after the company restated its financial results for seven quarters in 2000 and 2001. The company said the Securities and Exchange Commission had also raised questions about its current policies for recording revenue from the sale of video games.

Such enforcement actions could result in fines and changes to the company's accounting practices, Take-Two said. Officials at the S.E.C. declined to comment.

The disclosure is a significant turn for a company that has been a Wall Street darling, despite the cloud of investigation and a shake-up of its management last year. On Thursday, investors turned sour, with the stock closing at $27.84, down $2.55 or 8.39 percent.

Company executives declined to comment beyond a statement filed with the company's quarterly financial report indicating that it had received a so-called Wells notice from the S.E.C. Such a notice usually indicates that regulators intend to bring an enforcement action, although that does not happen in all cases. The company said that Ryan A. Brant, its chairman and former chief executive, had also received a Wells notice, but declined to say which former executives had received notices. Mr. Brant has liquidated large blocks of Take-Two stock this year, regularly selling 20,000 shares at a time, for a total value in excess of $20 million. He could not be reached through the company for comment.

Wall Street analysts had mixed responses about the significance of any enforcement action, and what impact it might have. Stewart Halpern, an analyst with RBC Capital Markets, an investment banking firm, said that if the company did have accounting problems, it had since cleaned up its act and that its future looked bright.

"There's been a restatement, wholesale management changes, settlement of shareholder lawsuits," said Mr. Halpern, who has put a strong buy recommendation on the stock. "All of those things are cures."

"It's unlikely that anything they're doing now is clearly improper," he added.

But other Wall Street analysts said the company faced continuing problems and that an enforcement action might be just the first shoe to drop.

Marc Cohodes, a partner with Rocker Partners, a hedge firm that has lost money shorting Take-Two stock, said he did not believe that the company's troubling conduct was a thing of the past. "It's my hope that every penny that Take-Two insiders made by selling this stock they have to give back - and then some," said Mr. Cohodes, who continues to question the underlying strength of the company. He noted that in early September the company raised its earnings projections, causing the stock to soar. At that time, company insiders sold hundreds of thousands of shares. But the stock dropped back down quickly.

On Thursday, Take-Two reported that it would have to lower its earlier projections, citing slower-than-expected holiday sales.

On one level, Take-Two's fortunes have soared. For its fiscal year ended in October, it recorded around $1 billion in revenue, making it the second-largest American video game company, behind Electronic Arts.

A crucial factor in Take-Two's success has been the performance of the Grand Theft Auto games - Grand Theft Auto III, which sold some 8 million copies, and its sequel, Grand Theft Auto: Vice City, which sold 10 million to 12 million copies, industry analysts said.

Those totals make it one of the hottest video game franchises in an industry where a game is a hit if it sells 500,000 copies.

But there have also been problems at the company. Trouble emerged in early 2002, when Take-Two said it had to restate financial returns for all of 2000 and the first three quarters of 2001. Trading of its stock was halted for three weeks and resumed on Feb. 15, 2002. The S.E.C. opened an inquiry.

At the time, industry analysts said the company cited three reasons for having to restate revenue: it reported revenue from sales it did not make, it failed to record the cost of acquiring a competing game maker and it overstated licensing revenue. Analysts also said that the company said it sold products to itself and counted the money as revenue.

Industry analysts said they could not be certain which practices would lead to an S.E.C. enforcement action. However, a former S.E.C. official, who insisted on anonymity, said the nature of the Wells notices probably meant that the charges would involve accusations of fraud as opposed to, say, complaints involving the company's stated policies.


GameSpot also has a bit about it

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quote:

Originally posted by Supreme Cmdr:


Thanks SC. Hmm, I didn't see that one on gamespot. Man this is not good. They are being attacked on all sides. Literaly they are being besieged by all these law suits. As for the violent aspect of their games I'd like those nay say people to prove the claims about these games being a detriment to society. Take for example here in NY city. There was a news report a few days ago that the city was at an all time low for crime violent or other wise. How can this be if what they claim is true about these games. and everyone knows damn well that a lot of people here in NY play those games me included so go figure.

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By this press, it sounds like this game is going to doom the world.This will end in users of this kind of games holding a license that assures their psicological stability,with a monthly forced visit to their local psicologue.

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I can certainly agree that financially, they seem pretty shady, but to describe the Vice City line as a doomsday device is disgusting.

If they cooked the books, then it's time to fry--but this Vice City is Ruining the World garbage is pathetic.

rvs

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I'm sorry... I have been itching to say this, as I am sure many people have in the past, and your prob sick of hearing it... BUT

If it wasn't for take2 you would of had the time you needed in the first place on 1.0, and the general industry community interested in BC3K wouldn't of turned so *impolite*, and I BELIEVE you (SC) wouldn't have been hardened so much if it was not for all the industry 'hecklers' on the forums. I saw what you had to deal w/ years ago, and now I see it over on DC forums..

But you DID it! You kept your dream alive, and fought tooth and nail for it, and you PULLED IT OFF!

I am playing what I was imagining playing when I read that Computer Gaming World article like over ten years ago.

I stand ready to be shot down.

I am no fanboy, just making an observation of a person's determination.

ProX

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Guest Fox__Trot

I hate to sound like a jerk but im going to: If the SC had all the time in the world for bc3k it'd proably never release since whenever the thought "Hey I can do this better" or "I can improve that" enters his head he tends to carry it out... what a horrible thing for a game deliver to want t release a good game shame on you!! > (of course if it did release we'd all be playing bc3k version 14.0 RC 3 right now)

In the end I have only myself to blame for this and other comments to follow

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quote:

If the SC had all the time in the world for bc3k it'd proably never release

i don't know , take 2 got it's funding alright and had various successful project they hijacked ( did i say that? i meant "sponsered and released prematurely" like hidden and dangerous 1) but still they sold like hot cakes they could have left bc3k as a sleeper project give it a couple of years and a shiny new engine ever now and then , yes it is money wasted but the amount it would sell in if SC implented all of his ideas there....

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Guest Fox__Trot

Comet but you forget the OTHER part of that quote "since whenever the thought 'Hey I can do this better' or 'I can improve that' enters his head he tends to carry it out"

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OK, so, how much longer before this implodes?

March 16th - Chairman Brant Resigns

April 14th - CEO Lapin Resigns

Earnings from the last few years back have been restated

This quarter has gone from being forecasted as a 33 cent/share profit to a 15 cent loss.

And over on CNN Money

[ 04-15-2004, 09:09 AM: Message edited by: Supreme Cmdr ]

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Looks like their stock would return some better dividends, now that the two Caballeros are gone, but, the Golden Parachutes have been deployed and all the money is raining down into the pockets of two thieves. LOL

I'm glad I don't have money invested in the company.

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Take Two might be the target of a take over

quote:


SAN FRANCISCO (MarketWatch) -- Take-Two Interactive Software Inc. shares rebounded more than 10% Monday on takeover speculation after losing a quarter of their value last week amid concerns about the video game maker's corporate governance.

Take-Two (TTWO16.19, +1.50, +10.2%) closed up at $16.19 to follow a Saturday report in the New York Post, citing unnamed sources, that the company has been in active talks with several buyout firms over the past week.

The report comes after the stock fell 26% over four trading days last week. On Wednesday, the game publisher filed a document with securities regulators that contained a resignation letter from board member Barbara Kaczynski, who said she had concerns about the company's management.


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