Take-Two Interactive (NASDAQ:TTWO) saw its shares retreat in premarket trading Wednesday, after the company unveiled plans to raise $1 billion through a common stock offering.
The stock slipped nearly 4% ahead of the market open, although it remains up by approximately 30% year-to-date.
The gaming giant said it intends to use the capital for general corporate purposes, which could include debt repayment and future acquisitions. The company is offering all the shares itself and has provided underwriters with a 30-day option to purchase an additional $150 million in stock. The offering is expected to close on May 22.
This development follows a recent announcement from Rockstar Games, Take-Two’s marquee studio, that it would delay the highly anticipated release of Grand Theft Auto VI. Originally slated for fall 2025, the game is now scheduled for May 2026, extending the long wait for what is seen as a pivotal release in the gaming world.
GTA VI is central to Take-Two’s long-term growth strategy, and expectations for the title have already been baked into many analyst forecasts. Its predecessor, Grand Theft Auto V, launched in 2013 and has since sold over 200 million units, solidifying its status as one of the top-selling video games of all time.
Despite a promising future lineup, Take-Two recently projected fiscal 2026 bookings that came in below adjusted analyst forecasts. This signaled that the delay of GTA VI could have a material impact on near-term financial performance, even as the company readies 25 new releases across fiscal years 2027 and 2028.
Adding to the headwinds, Take-Two recorded a $3.5 billion impairment charge in Q4, attributed to “updating long-term expectations,” as shared by executives during the company’s latest earnings call.
Titles such as “Borderlands 4” and “Mafia: The Old Country” are among the major releases expected this year. However, their success may not be sufficient to offset the short-term impact of GTA VI’s delay, especially given the high expectations tied to that franchise’s launch.