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Take-Two Sells Joytech

| 7 Sep 2007 18:06
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Take-Two Interactive has sold Joytech, a videogame accessory manufacturer, to its former rival Mad Catz.

The sale includes all of Joytech's assets, including its staff, and follows in step with Take-Two's recently announced plan to divest itself of non-core businesses. "The sale of the Joytech assets is consistent with one of the key gaols we established in our 100 Day Plan: To develop strategic alterantives for any operations that we determiend to be outside our core publishing business," said Take-Two CEO Ben Feder. "We are particularly pleased that we accomplished this goal in a manner that will allow substantially all of our Joytech employees in the U.S. and U.K. to join Mad Catz, which is a highly respected provider of videogame peripherals."

Both Joytech, which had previously been a wholly-owned subsidiary of Take-Two, and Mad Catz manufacture controllers and other accessories for all major game consoles and the PC.

Take-Two's "100 Day Plan" was originally announced in April, after a new management team had taken over the company following a shareholder revolt. The plan involved a restructuring and consolidation of Take-Two's North American and international operations in order to create a more "efficient and responsive" organization, and was implemented following heavy year-on-year losses in 2006 and 2007. According to a Take-Two press release, the Joytech sale is not expected to be material to Take-Two's financial results.

Disclosure(s): Strauss Zelnick, Chief Executive Officer and Chairman of the Board of Directors of Take-Two Interactive Software, Inc., is the head of ZelnickMedia, an investor in both Take-Two and Defy Media, LLC, our parent company. This article was published without approval or consent of ZelnickMedia or Take-Two.
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