Take-Two Interactive CEO Strauss Zelnick expressed a defensive stance when addressing investor questions about the company's performance and the ongoing development of Grand Theft Auto 6 during a recent shareholder meeting on September 17. When a question alluded to "years of delays, missed expectations, and continued dependence on a small number of major franchises," Zelnick took exception to the characterization.
Zelnick, who has fielded numerous inquiries about GTA 6 over the years, recounted the company's transformation since he took over management in March 2007. At that time, he stated, Take-Two's stock price was $17, revenue was under a billion dollars, the company faced multiple government investigations, had not filed annual reports for 13 months, and was heavily reliant on the Grand Theft Auto franchise with other ventures losing money. He asserted that the current management team has since reduced costs, diversified the business significantly, entered the mobile market, and launched more than 11 franchises that have each sold over 5 million units. Zelnick highlighted that Take-Two is now the largest publicly traded pure-play interactive entertainment company by market capitalization, with its stock appreciating approximately 1,200% compared to the S&P's 440% and the NASDAQ's 980% since March 2007. The company's revenue is projected to be between $8 billion and $8.2 billion for the current year, with significant anticipated pre-cash flow.
Despite Zelnick's detailed rebuttal, his response was perceived as somewhat grumpy and defensive. While he accurately pointed out Take-Two's improved financial standing and diversification from its precarious position two decades ago, the company does have a history of significant game delays, which have occasionally led to missed expectations. The upcoming release of Grand Theft Auto 6, anticipated for November, has been subject to considerable speculation and numerous delays, contributing to the investor's query. Zelnick concluded the meeting by transitioning to other questions, presumably looking forward to a future where inquiries focus on sales and updates rather than release dates for GTA 6.