Filing Flows › Take Two Interactive Software (TTWO) › Takeover & LBO
Is Take Two Interactive Software (TTWO) a takeover target?
A leveraged buyout does not work for Take Two Interactive Software on its latest figures: its EBITDA margin is only 0.5% ($35.0M on revenue of $6.7B), too thin to carry buyout debt. Historically 2.8% of companies with its figures were bought within a year (0.56× the average).
Why a leveraged buyout does not fit
Take Two Interactive Software kept 0.5% of its revenue as EBITDA over the last 12 months ($35.0M on $6.7B). A margin that thin cannot carry the debt a leveraged buyout needs — a small dip in sales would leave nothing for interest — so the model gives no buyout price.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Take Two Interactive Software would cost about $281.45 a share, $52.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $242.48 | $45.3B |
| Median | 30% | $281.45 | $52.6B |
| High end (a quarter paid more) | 31% | $283.62 | $53.0B |
The odds, from history
Historically 2.8% of companies with its figures were bought within a year (0.56× the average). Its figures put it in decile 2 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Take Two Interactive Software's latest quarter
Take Two Interactive Software, Q1 FY27: revenue $1.5B (+2% year over year), operating margin -2.3%, net loss $34.1M, operating cash flow −$169M. The chart follows the revenue to costs, profit and cash.
Questions
Is Take Two Interactive Software being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Take Two Interactive Software?
A leveraged buyout does not work for Take Two Interactive Software on its latest figures: its EBITDA margin is only 0.5% ($35.0M on revenue of $6.7B), too thin to carry buyout debt. A margin that thin leaves almost nothing to pay interest with, so buyout debt does not fit.
What would a takeover of Take Two Interactive Software cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Take Two Interactive Software would cost about $281.45 a share, $52.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.