DEC. 22, 2009 • Synnex Corp paid Take-Two Interactive Software Inc. $43.3 million for the latter’s Jack of All Games distribution division. Take-Two said the sale was still consistent with its previously announced plans to concentrate on its core game publishing business.
Impact: Physical distribution is a tough, cut-throat business with limited margins and uncertain growth prospects as we enter an age of digital distribution. Therefore, it is not surprising that many distributors look to grow by going into the publishing and development business. In the game industry there have been several examples of companies going from distribution into publishing. The most successful of these companies was Take-Two Interactive, which started life as a distributor with the Jack of All Games brand. In 1997, over 80% of revenue for Take-Two came from distribution. Only five years later that ratio was roughly reversed with Take-Two receiving about 72% of revenue from publishing and only 28% from distribution. In the case of Take-Two selling Jack of All Games it was clearly consistent with a plan started over ten years ago.
