Shares of Take-Two Interactive Software, Inc. (TTWO) gained 1.1% to close at $178.97 on July 1 after the company revealed the acquisition of Dynamixyz. The financial terms of the deal have been kept under wraps.
Take-Two Interactive Software is a video game holding company that develops, publishes, and markets interactive entertainment for consumers across the world.
Dynamixyz, founded in 2010, provides the widest range of video-based facial animation services to the entertainment market.
Through the acquisition, Take-Two will be able to enhance its internal development capabilities to reach its goal of becoming a best-in-class entertainment company.
Furthermore, Dynamixyz’s innovative facial analysis technology will be a great strategic fit for Take-Two’s publishing and development platform. (See TTWO stock charts on TipRanks)
Prior to the deal, Dynamixyz and Take-Two had a long-standing partnership spanning over a decade. Dynamixyz has worked on Take-Two’s popular labels, Rockstar Games and 2K, and several famous projects like Red Dead Redemption 2, NBA 2K21, Avengers: Endgame, to name a few.
Upon completion of the integration, Dynamixyz will function as a separate division of Take-Two.
Michael Worosz, EVP, and Head of Strategy and Independent Publishing at Take-Two, commented, “Gaspard and the visionary team at Dynamixyz have a well-earned reputation for providing the widest and smartest range of facial motion capture solutions to the entertainment industry, and their work has captivated millions of people around the world from the box office to the living room. We’re thrilled to have them join our team, incorporate their proprietary technologies and creative wonder into our future offerings, and to continue to evolve their capabilities and solutions.”
Deutsche Bank analyst Clay Griffin recently initiated coverage of Take-Two with a Buy rating and a price target of $214 (19.6% upside potential).
Griffin believes, “Take-Two arguably has the best-owned IP collection of franchises in the industry.” He added, “On pure upside potential, Take-Two may take top billing as it embarks on an ambitious organic investment strategy to dramatically expand its pipeline of production.”
Overall, the stock has a Moderate Buy consensus rating based on 13 Buys, 5 Holds, and 1 Sell. The average Take-Two price target of $213.53 implies 19.3% upside potential from current levels. Shares of TTWO have jumped 24% over the past year.
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