Take-Two Interactive Software Inc TTWO
Owner of culturally iconic IP that compounds through sequels, DLC, and live services when hits align with enduring player demand.
Management and Optionality hold this up; Valuation is the soft spot.
| Moat | 5.0 |
| Management | 8.0 |
| Valuation | 4.0 |
| Risk · 10 = lowest | 5.0 |
| Business model | 7.0 |
| Optionality | 8.0 |
The price needs 21.0% growth a year for ten years. The AI thinks 18.0% is achievable, at a 15.0% margin.
TTWO trades at a price that demands strong growth, but its durable franchises and shift to recurring revenue give it a realistic shot at delivering that growth while margins expand. The key evidence is the high historical returns on reinvestment and the clear path to higher-margin live services. The main caveat is heavy reliance on a few big titles—if GTA VI or similar hits disappoint, the valuation could look stretched.
Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company develops and publishes action/adventure products under the Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption names, as well as other franchises. It also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier's Civilization, XCOM series, Borderlands, and Tiny Tina's Wonderland names. In addition, the company publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; mobile titles, including WWE SuperCard; and PGA TOUR 2K. Further, it offers free-to-play mobile games, such as CSR Racing, Dragon City, Empires & Puzzles, FarmVille 3, Game of Thrones: Legends, Golf Rival, Harry Potter: Puzzles & Spells, Hit It Rich!, Match Factory!, Merge Dragons!, Merge Magic!, Monster Legends, NBA 2K, Toon Blast, Top Eleven, Wizard Of Oz Slots Casino, Toy Blast, Words With Friends, and Zynga Poker; and Color Block Jam. The company's products are designed for console gaming systems; and mobiles, such as smartphones, tablets, and personal computers. It provides its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc. was incorporated in 1993 and is based in New York, New York.
Write why this business works, set your own fair value, and let the briefing speak only when a rule you wrote is crossed.
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