Recently, the gaming giant Electronic Arts was taken private in a $55 billion sale to an investor consortium led by Saudi Arabia’s Public Investment Fund. Could GTA 6 owner Take-Two be the next big company that gets acquired? Don’t bet on it, CEO Strauss Zelnick says. <\/p>\n
Speaking to David Rubenstein, Zelnick said Take-Two’s business results have proven that it “can do very well as an independent company.”<\/p>\n
He said Take-Two’s business is already “at scale” and healthy enough financially with a “terrific balance sheet,” as he put it. <\/p>\n
“We are not in a place where we need to be part of a bigger organization to be competitive. And in the entertainment business, scale matters,” he said.<\/p>\n
Zelnick said companies that do less than a billion in annual revenue might have issues with developing, marketing, and distributing games at scale. Not only that, but companies that don’t generate a lot of money might not be able to survive the realities of the creative business, in which sometimes your product flops. <\/p>\n
“But once you’re over a billion dollars in annual revenue, and we’re way beyond that point. Our guidance is $8 billion to $8.2 billion this fiscal year,<\/p>\n