The deal is reportedly worth £40million, although EA have described that figure as “sensationalised” and “in no way accurate.” More worryingly, negotiations for any renewal of his deal, which was initially for three years, would probably begin shortly after the World Cup.īeckham, whose personal fortune with wife Victoria is estimated at £380 million, prizes the EA contract. Sources close to the 46-year-old say his team are growing increasingly anxious about the furore, not least because EA Sports is perceived as ‘very sensitive’ to criticism.
The lack of support heaps more pressure on Beckham after Amnesty International challenged him to speak out about the ‘deeply concerning’ situation in Qatar. They said: ‘We do not comment on the specifics of our brand ambassadors’ other partnerships.’ The analyst has a $20 target on shares, indicating his expectation that the stock will fall slightly during the next 12 months or so.As part of the deal it is expected that Beckham will become the face of the 2022 World Cupīut the company pointedly declined to say how it reconciled that position with Beckham’s deal to promote a nation where homosexuality is illegal and the freedom of women is heavily curtailed. “A fresh start with senior-level management, while not necessarily solving the historical problems, places the company in a better position for the opportunities that lie ahead,” said BMO Capital Markets analyst Edward Williams, who rates Take-Two shares a “market perform.”
Zelnick noted the criticism but also pointed out that the company’s Rockstar Games unit boasts a half-dozen million-game sellers aside from the “Grand Theft Auto” titles.Īnswering an analyst concerned that “Grand Theft Auto” would some day lose its allure, Zelnick noted that last year’s “Casino Royale,” the 21st of the 007 films, was the franchise’s best-performing title.įeder and Zelnick stressed that they are long-term investors who won’t soon be selling their shares. The company is often criticized for relying too heavily on “Grand Theft Auto” and other franchises while not quickly enough introducing new potential hits, especially in what is becoming the lucrative area of simple-to-play, nonoffensive games that appeal to younger and older demographics. Zelnick also helped to create BMG Interactive, which eventually was sold to Take-Two, an irony he spoke to analysts about Tuesday.īesides the 2K Sports update, Zelnick and Feder, also an alum of News Corp., did not change previous fiscal year guidance of second-quarter revenue that’s expected to fall 25% year-over-year.įeder, who will reign as CEO until the company is whipped into shape and a permanent CEO is hired, predicted a “highly productive year” in 2008 from the development of games with “real market potential.” Those lacking, will “get killed early,” he said. He’s also no stranger to video games, having headed Crystal Dynamics more than a decade ago, before it was sold to Eidos Interactive and made a name for itself with the “Tomb Raider” franchise. Zelnick is a former CEO of BMG Music and president and COO of News Corp.’s 20th Century Fox. Zelnick said that the company’s 2K Sports division might not turn a profit this calendar year despite the assurances of previous management. The news didn’t help shares, though, which sunk 1.8% to $20.38. The company said Tuesday before its conference call that it has regained listing compliance with Nasdaq, so it no longer is in danger of delisting. Zelnick began Tuesday by promising “utmost integrity” from upper management and board members.
Securities and Exchange Commission into accounting practices congressional inquiries into secret sex scenes hidden in versions of “Grand Theft Auto” franchise games and, until recently, a steadily eroding stock price. Previous indiscretions include former CEO Ryan Brant becoming the first chief executive convicted in the ongoing stock-option backdating scandal an investigation by the U.S. Zelnick, on the conference call with analysts, said he and Feder are impressed with the high morale of company employees, considering what the company has been through. Since then, CEO Paul Eibeler was replaced by Benjamin Feder, CFO Karl Winters resigned, and most of the board was ousted.