Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Eric Handler with Barclay’s Capital. Please proceed with your question.
Eric Handler - Barclay’s Capital
Thank you very much for taking my question. With regard to the Rockstar talent announcement, in the release you say they are going to be essentially carving out a separate studio which you will release some of their titles. What percentage of the new content from Rockstar going forward is going to be owned by the new studio versus what you own?
Strauss Zelnick
First of all, I would like to emphasize that the key elements here in this deal are a continued relationship with the top talent in the business. The second point to emphasize is that we’ve announced that the economic incentives related to that extension are based on a profit-sharing arrangement. That’s new, that’s change and a reflection of our continued strategy and approach to make sure the interests of everyone who works at Take-Two are aligned with the interests of our shareholders and we are really pleased and proud that our entire team is up for that and excited about that. It obviously will emphasize the focus on profitability around here and that’s what we are aiming to do with our creative talent, with our executive talent, with everyone we are in business with.
On the specific question you posed, in addition to looking after existing properties and new properties that are wholly-owned by our company, there is an entrepreneurial opportunity for the key talent with whom we have a relationship with at Rockstar to develop new incremental intellectual property that they own and will be exclusively published by Take-Two.
In terms of the actual number of properties, it’s not really possible to say at this point. I think the key point is that more triple A products in which we have an interest, that we exclusively publish, the better it is for our company. The more entrepreneurial and creative opportunity for our key talent and colleagues at Rockstar Games, the better it is for the company. We think it’s a win-win.
Operator
Our next question comes from the line of Mike Hickey with Janco Partners.
Mike Hickey - Janco Partners
Congrats on your year, and then congrats on signing the Rockstar team. We’re curious what would happen to the contract if there was a change of control, and then I have a follow-up.
- To read the full transcript on Seeking Alpha, click here »
