Take-Two Gains on Deal With Tiger Woods for Golf Video Games
(Bloomberg) -- Take-Two Interactive Software Inc. shares rose on Tuesday after the company’s 2K division struck an exclusive, long-term partnership with Tiger Woods for its golf video games.
KeyBanc Capital Markets said the news was “an incremental positive” for the company because it “boosts the profile of its already successful PGA Tour 2K franchise” and lowers the risk of competition. It expects a new game launch in the franchise “at least every other year.”
The stock rose as much as 3.2%, helping offset a drop this year fueled by concerns that the pandemic’s end would stem demand for games. Take-Two’s sales have been rising with consumers stuck at home during quarantine, driving a 70% jump in its stock price in 2020.
Take-Two has since given back some of those gains, slipping about 17% -- even with Tuesday’s advance. That’s made it one of the worst performers in the S&P 500 Index this year.
For Woods, 45, the announcement marks the start of a comeback following a car crash last month that sent him to the hospital.
Earlier this month, Colin Sebastian, an analyst who follows Take-Two for Robert W. Baird & Co., said this year’s retreat was caused in part by concerns over Take-Two’s growth outlook once the pandemic ends.
There is uncertainty “about whether the strong engagement trends we saw in 2020 will continue as vaccines get distributed and the economy reopens,” he said.
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