The last few months has been riddled with news about Electronic Arts and its bid to own Take-Two while Take-Two battles for control of itself. Why was EA so aggressive about controlling Take-Two prior to GTAIV’s release?
Initially, we figured it was because the franchise hit was going to storm the game industry and make millions…oh wait, it did. However, it seems that EA’s latest battle is with itself and its $454 million dollar loss while selling $3.6 billion last fiscal year. Today, Electronic Arts broke the news that they were taking a bit of a loss but CEO John Riccitiello said “he’s pleased with the revenue numbers.”
Revenue is great, but typically it also means you’re making money, not losing it. This year they’re predicting revenues of $4.9 and $5.15 billion; let’s see if they manage to turn that revenue into actual savings for their coffers.
Oh wait, didn’t they just ask for a 1 billion dollar loan to nab Take-Two? The Financials are confusing me; this seems like a whole lot of debt. But, you gotta spend money to make money… right?
(Thanks, Joystiq.)
