Bitmap Frogs said:
You ARE right. It's a loan. A fact conveniently ignored by many.... |
Can you guys source this loan discussion? It's my understanding that MS has given Take Two 50 million dollars for 2 episodes of dlc. Take Two has booked these as liabilities on their balance sheet as deferred payments. They will remove 25 million from their liabilities when the first episode is given to MS, and the second 25 million will be removed when they deliver the second installment. The repayment of the 50 million dollars will not be cash, it will be in the actual software. This is not a loan, but a purchase.
"The first 25 is for the first episodic content package that's supposed to go out and that is in March of '08. That's why it moved into current because it's in the next 12 months. The second 25 will be for the second episodic, the episode, and that will be later in fiscal '08." - Take Two from the F2Q07 conference call
Here is my source. http://seekingalpha.com/article/38017-take-two-f2q07-qtr-end-4-30-07-earnings-call-transcript
Just so we are on the same page here is the definition of a loan. "An advance of funds from a lender to a borrower on the agreement that the borrower pays interest on the loan, plus paying back the initial amount of the loan at or over an agreed time."
http://www.redearthfinance.com.au/bwWebsite/followon.asp?PageID=3599
I would like some additional information if this truly was converted to a loan.
Thanks for the input, Jeff.
