What would make Grand Theft Auto publisher Take-Two Interactive revise its yearly earnings downward by an impressive $US290 million for the year? The selling of its distribution business, Jack of All Games.
The company announced today, just a few days after its quarterly earnings report, that it was selling off its distribution company to SYNNEX for $US43.25 million, putting all of its eggs into the publishing business basket going forward. Take-Two expects more than a quarter billion drop in estimated revenues for the year, a $US120 million drop in the first quarter alone.
That's a big drop. So, why would Take-Two do such a thing?
Publisher CEO Ben Feder says the sale "is consistent with our stated intention to focus our resources on our core business strategy - delivering globally the most innovative and creative interactive entertainment products."