Take-Two Interactive Files 8-K on Exit/Disposal Activities

TL;DR

TTWO filed an 8-K for exit/disposal costs - details TBD.

AI Summary

Take-Two Interactive Software, Inc. filed an 8-K on April 16, 2024, to report on cost-associated exit or disposal activities and Regulation FD disclosures. The filing does not contain specific financial figures or details regarding the nature of these activities.

Why It Matters

This filing indicates potential restructuring or divestitures within Take-Two Interactive, which could impact future financial performance and strategic direction.

Risk Assessment

Risk Level: medium — The filing suggests potential business changes or restructuring, which inherently carries some level of risk and uncertainty for investors.

Key Players & Entities

• TAKE-TWO INTERACTIVE SOFTWARE, INC. (company) — Registrant
• 0001628280-24-016440 (filing_id) — Accession Number
• April 16, 2024 (date) — Filing Date

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value TTWO NASDAQ Global Select Mar
• $160 million — imates that it will incur approximately $160 million to $200 million in total charges in con
• $200 million — ill incur approximately $160 million to $200 million in total charges in connection with the
• $40 million — tion with the Plan. The Company expects $40 million to $60 million of the total charges to
• $60 million — lan. The Company expects $40 million to $60 million of the total charges to result in futur
• $120 million — total charge consists of approximately $120 million to $140 million related to title cancel
• $140 million — nsists of approximately $120 million to $140 million related to title cancellations, approxi
• $25 million — d to title cancellations, approximately $25 million to $35 million associated with employee
• $35 million — ellations, approximately $25 million to $35 million associated with employee severance and
• $15 million — ployee-related costs, and approximately $15 million to $25 million related to office space
• $165 million — e The Company expects to achieve over $165 million of annual cost savings in connection wi

Filing Documents

• ttwo-20240416.htm (8-K) — 32KB
• 0001628280-24-016440.txt ( ) — 152KB
• ttwo-20240416.xsd (EX-101.SCH) — 2KB
• ttwo-20240416_lab.xml (EX-101.LAB) — 21KB
• ttwo-20240416_pre.xml (EX-101.PRE) — 12KB
• ttwo-20240416_htm.xml (XML) — 3KB

05

Item 2.05 Costs Associated with Exit or Disposal Activities On April 16, 2024 the Board of Directors of Take-Two Interactive Software, Inc. (the "Company") approved a cost reduction program (the "Plan") to identify efficiencies across its business and enhance the Company's margin profile, while still investing for growth. As part of these efforts, the Company is rationalizing its pipeline and eliminating several projects in development and streamlining its organizational structure, which will eliminate headcount and reduce future hiring needs. The Company estimates that it will incur approximately $160 million to $200 million in total charges in connection with the Plan. The Company expects $40 million to $60 million of the total charges to result in future cash expenditures. The total charge consists of approximately $120 million to $140 million related to title cancellations, approximately $25 million to $35 million associated with employee severance and employee-related costs, and approximately $15 million to $25 million related to office space reductions. The Plan is expected to be largely complete by December 31, 2024 and will reduce the Company's workforce by approximately 5%.

01

Item 7.01 Regulation FD Disclosure The Company expects to achieve over $165 million of annual cost savings in connection with the Plan disclosed in Item 2.05 of this Current Report on Form 8-K, which includes reductions to its existing expense base and lowered projected expense growth for the coming years.

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains forward-looking statements. We use words such as "anticipate," "believe," "expect," "intend," "estimate", "plan", "predict", "seek", "goal", "will", "may", "likely", "should", "could" (and the negative of any of these terms), "future", and similar expressions to identify forward-looking statements. In addition, any statements that refer to projections of our future financial performance, trends in our business, uncertain events and assumptions and other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements consist of, among other things, statements related to our business, operations and financial results, and our future financial performance, including our ability to achieve the expected cost savings in connection with the Plan described in this Form 8-K, and may include certain assumptions that underlie the forward-looking statements. These forward-looking statements are not guarantees of future performance and reflect management's current expectations. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that might cause or contribute to such differences include those described in Take-Two Interactive Software, Inc.'s Annual Report on Form 10-K, filed on May 26, 2023 and in its other filings. We assume no obligation to revise or update any forward-looking statement for any reason, except as required by law. 2

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. TAKE-TWO INTERACTIVE SOFTWARE, INC. (Registrant) By: /s/ Matthew Breitman Matthew Breitman Senior Vice President, General Counsel Americas & Corporate Secretary Date: April 16, 2024 3

View Full Filing

View this 8-K filing on SEC EDGAR