Take-Two Reports Massive Loss Among Other Developments

That first quarter loss includes $6.1 million of costs related to stock-based compensation (to Take-Two's new management team) and $1.7 million in legal and reorganization expenses. 51% of Take-Two's revenues came from publishing operations (with the remainder coming from distribution). 84% of revenues came from North America. By platform, 25% of revenues came from the sale of PlayStation 2 games, followed by Xbox 360 games at 21% and Wii games at 19% (with other platforms making up the remainder).

Take-Two Interactive also announced that BioShock 2 (the sequel to BioShock) is being developed at 2K Marin and will probably be released before the 2009 holiday season.

Finally, there's the matter of Electronic Arts' offer to acquire Take-Two. As we predicted, a class-action lawsuit was filed on March 7 contending that Take-Two's officers and directors "breached their fiduciary duties by... refusing to explore premium offers by Electronic Arts Inc. to acquire all the company's shares" and enacting measures to entrench Take-Two's current leadership. EA probably made its offer public to encourage such actions, hoping that shareholders would get things done when Take-Two's management would not.