Take Two CEO Strauss Zelnick answered investor questions at the company’s second-quarter financial meeting. Zelnick believes the gaming industry will continue to have activities around convergence and acquisitions after Microsoft’s acquisition of B-Parent.
“We’ve seen an acceleration in acquisitions and convergence activities, and it’s clear that Microsoft is acquiring B, which is a big deal, more than $7 billion. So I think you’re going to continue to see more cases in acquisitions and mergers, just because of the popularity of this category and the money that big companies are putting into pursuing it.
For our part, we have nearly $2.4 billion in cash. We have no debt. We are eager to actively develop our business. We use our money to support us, and we use our cash to buy companies, provided their strategies are consistent. When these transactions are proliferating, we regularly return capital to shareholders through repurchases, which will continue to be our policy. “
It’s worth noting that Take Two’s studio, R Star, recently acquired Ruffian Games, the developer of Fighting Police 2, and changed its name to Rockstar Dundee, although this is a relatively small deal. Nor does it rule out that Take Two is in the process of making a bigger acquisition.