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Take-Two’s Financials Are In — Is the House of Grand Theft Auto Wobbling?

Take-Two Interactive’s recent financial performance reveals a company in transition, balancing a massive legacy console business with a struggling mobile strategy.

• Take-Two Interactive has recorded a cumulative $6.21 billion impairment charge against its Zynga acquisition, consisting of a $3.7 billion write-down this year following a $2.5 billion charge last year.
• While mobile games now account for 52% of Take-Two’s $5.6 billion total net revenue, the company projects flat growth for the mobile segment in the upcoming fiscal year.
• Take-Two’s 33% increase in market capitalization since the Zynga acquisition is driven primarily by investor anticipation for Grand Theft Auto VI rather than operational success from the Zynga integration.