CNBC’s Jim Cramer explained Monday why he’s optimistic Interactive take-twosaying he’s ready to dominate the video game space now that his top competitor is in private.
“It was an industry with three major players, but now, with Activision gone and EA going private, Take-Two is now the only major American video game company that is pure play,” Cramer said. “I think it’s huge. Not only were very sophisticated investors willing to pay a premium for EA, but Take-Two now has real scarcity value.”
Take-Two is known for a number of popular video game series, namely the Auto Grand Theft franchise. The company is gearing up for a May 2026 release of “Grand Theft Auto VI,” the latest iteration of the series, which gamers have been anticipating for more than a decade. Its predecessor, “Grand Theft Auto V,” is one of the best-selling video games of all time, having sold more than 200 million copies since its release in 2013.
Shares of Take-Two have been soaring over the past few months, and shares are currently up 39.6% year-over-year.
Last week, the company’s peer Electronic arts announced that it would be acquired by Saudi Arabia’s Public Investment Fund, Silver Lake and Affinity Partners in a deal worth $55 billion. The take-private deal will be the largest leveraged buyout in Wall Street history. Cramer noted that the electronic arts takeover comes two years later Microsoft Acquired Activision Blizzard, another major American video game publisher.
According to Cramer, those who want to invest in a traditional video game company must now enter the Japanese market or “bet on the pile-two.” He also said that while Microsoft and Sony have large gaming divisions, most of their sales come from other companies.
Cramer also highlighted several aspects of Take-Two’s business that he finds impressive, including its most recent quarter’s results. The company beat Wall Street estimates and raised its annual forecast for net bookings. Take-Two said new player additions for GTA Online increased by more than 50% year over year, Cramer noted. He also said the company has other successful franchises beyond GTA, including sports game NBA 2K. The game’s 2025 iteration has already sold more than 11.5 million units, the company said, and daily active users have climbed 30% year-over-year. While most of Take-Two’s games are played on PlayStation, Xbox and PC, Cramer noted that its mobile business is growing well.
“GTA VI” is likely a success, Cramer continued, even if the release date is delayed. If the game is delayed and the stock takes a hit, he suggested investors use the decline as a buying opportunity.
“Just keep in mind, if you’re going to make the move in Take-Two here, you need to be able to establish delays to ‘GTA VI,’” he said. “In fact, you should expect delays – video games aren’t like movies, which come off a regular schedule.”
Take-Two did not immediately respond to request for comment.
