Take-Two sells Jack of All Games distribution business
SYNNEX Corporation picks up business for estimated $43 million
Take-Two is to sell the distribution arm of its business Jack of All Games to services company SYNNEX Corporation, it has announced.
The deal has been valued at approximately USD 43.25 million, including USD 36.50 million in cash and up to an additional USD 6.75 million based on the achievement of certain items.
Jack of All Games primarily distributes third-party software, hardware and accessories in North America. SYNNEX will continue to run the business, serving Jack of All Games' current clients, including Take-Two.
"The sale of Jack of All Games is consistent with our stated intention to focus our resources on our core business strategy - delivering globally the most innovative and creative interactive entertainment products," said Ben Feder, CEO of Take-Two.
As a result of the sale, Take-Two will update its first quarter and fiscal year 2010 guidance to exclude the distribution business.
The publisher recently announced a USD 138 million loss for the fiscal year, with revenues falling 37 per cent and subsequently expressed its intention to improve performance by focusing on the development of triple A titles.