Summary
Take-Two Interactive Software, Inc. (TTWO) filed an 8-K on June 6, 2002, to report the acquisition of all assets related to the interactive software game and franchise known as 'Max Payne', as well as a perpetual royalty-free license to its underlying technology. This strategic acquisition was completed on May 22, 2002, through an Asset Purchase Agreement effective May 20, 2002, involving TTWO, its subsidiary Maxcorp Ltd., Apogee Software, Ltd. (d/b/a 3D Realms), and Remedy Entertainment, Ltd. This move signals a significant investment in a key intellectual property for Take-Two, aiming to bolster its game portfolio. The consideration paid includes $10 million in cash and the issuance of approximately 2.57% of the company's common stock. Furthermore, contingent payments of up to $8 million are tied to future sales of the PC version of 'Max Payne 2', indicating management's confidence in the franchise's future revenue potential. Investors should monitor the performance of the 'Max Payne' franchise and its contribution to Take-Two's financial results.
Key Highlights
- 1Take-Two Interactive Software acquired all assets of the 'Max Payne' game and franchise.
- 2The acquisition includes a perpetual, royalty-free license to the underlying technology.
- 3The transaction was completed on May 22, 2002, via an Asset Purchase Agreement.
- 4Consideration included $10 million in cash and 969,932 shares of restricted common stock (approx. 2.57% of total shares).
- 5Potential future incentive payments of up to $8 million are contingent on 'Max Payne 2' PC version sales.
- 6The acquisition is expected to enhance Take-Two's gaming intellectual property portfolio.