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2K's New York office will be closed down as part of a consolidation program.
The analyst Mike Hickey suspects, that Take-Two is preparing to be taken over, likely by Electronic Arts or Viacom (the German site 4players.com called them "the usual suspects").
So, will Civ5 be published by Electronic Arts? 
Will there be a Civ5 at all?
Neither of the articles mentions the Civ franchise as a notable asset, by the way.
Take-Two has revealed to GamesIndustry.biz that the New York office of 2K games is to close as the company moves to reorganise its business.
As reported earlier this week, Take-Two is embarking on a restructuring programme after net revenues fell by USD 60 million year-on-year.
Public relations advisor Ed Nebb has since told GI.biz, "The 2K New York office will be closed as part of the consolidation of the label's management and other functional operations on the West Coast."
Nebb declined to reveal the number of employees who will be made redundant, stating, "We have reduced the publishing staff connection with the reorganisation, although we have not disclosed the final number of positions affected.
"It's important to note that the goal of the reorganisation is not merely cost-efficiency, but about allowing Take-Two to do what it does best - create great, best-selling games," he continued.
Previously announced titles for Q3 and Q4 2007 appear to be on solid ground, but Nebb did state that the company has written off several unnamed products in development that were due to launch in the longer term.
"We have extensively reviewed the products in our pipeline," he said. "While we are comfortable with the economic assumptions underlying most of the titles, we did write off several products in development that were planned for release beyond fiscal 2007."
When asked if the cancellations included announced 2008 releases such as LA Noire or Beaterator, Nebb replied, "As you surmise, the projects written off were early works in progress, not major titles."
As reported earlier this week, Take-Two is embarking on a restructuring programme after net revenues fell by USD 60 million year-on-year.
Public relations advisor Ed Nebb has since told GI.biz, "The 2K New York office will be closed as part of the consolidation of the label's management and other functional operations on the West Coast."
Nebb declined to reveal the number of employees who will be made redundant, stating, "We have reduced the publishing staff connection with the reorganisation, although we have not disclosed the final number of positions affected.
"It's important to note that the goal of the reorganisation is not merely cost-efficiency, but about allowing Take-Two to do what it does best - create great, best-selling games," he continued.
Previously announced titles for Q3 and Q4 2007 appear to be on solid ground, but Nebb did state that the company has written off several unnamed products in development that were due to launch in the longer term.
"We have extensively reviewed the products in our pipeline," he said. "While we are comfortable with the economic assumptions underlying most of the titles, we did write off several products in development that were planned for release beyond fiscal 2007."
When asked if the cancellations included announced 2008 releases such as LA Noire or Beaterator, Nebb replied, "As you surmise, the projects written off were early works in progress, not major titles."
Janco Partners analyst Mike Hickey believes that Take-Two’s recently appointed management could be grooming the firm for sale within the next year, as he effectively upgraded shares to a "buy" rating. Could Viacom or Electronic Arts be potential suitors?
With Take-Two focusing on its core competencies and stripping away non-core businesses, Hickey thinks the New York-based publisher would become more suited for acquisition by larger firms.
“A narrow portfolio of strong franchises, owned IP, and world renowned development team notorious for owned IP creation, could be an exceedingly powerful asset for a competitive 3rd party developer like Electronic Arts or a large multi-media company like Viacom,” he said in an investor note.
A sale of Take-Two could happen within 12 months, according to Hickey.
The firm previously announced a “100 day plan” that would include the sale of non-core businesses such as its Jack of All Games distribution business. Take-Two’s plan also includes a more stringent green-light standard for games, cost cutting measures, job cuts, resolution of litigation issues and closer attention to supplier and licensor relationships.
Hickey said that Take-Two is actually in active discussions to sell its Jack of All Games business. He expects the sale to be worth between $75 and $100 million. The firm is also looking to sell its Joytech peripherals unit.
The company examining the possibility of closing “underutilized” development studios. Management said during the last conference call that it expects to create $25 million in cost reductions by the end of fiscal 2008. Hickey forecast that most of that cost reduction would come from layoffs of around 200 employees, or 10 percent of the total employee base. However, he said that the firm could lay off as many as 315 workers, or 15 percent of the total.
Take-Two’s new management, which took control earlier this year, is making a significant change in strategy in order to get Take-Two back on track. “It appears the Company is stripping out much of the product diversification effort implemented by prior management and is instead focusing on hit franchises,” Hickey wrote.
Hickey upgraded Take-Two shares rated to “buy” in the wake of the latest earnings call. Shares were up 1.7 percent to $19.65 in afternoon trading on the Nasdaq. Take-Two reported net revenue of $205 million for fiscal Q2, down $60 million from a year ago.
The company's killer app, Grand Theft Auto IV, is slated for release this October across multiple platforms.
With Take-Two focusing on its core competencies and stripping away non-core businesses, Hickey thinks the New York-based publisher would become more suited for acquisition by larger firms.
“A narrow portfolio of strong franchises, owned IP, and world renowned development team notorious for owned IP creation, could be an exceedingly powerful asset for a competitive 3rd party developer like Electronic Arts or a large multi-media company like Viacom,” he said in an investor note.
A sale of Take-Two could happen within 12 months, according to Hickey.
The firm previously announced a “100 day plan” that would include the sale of non-core businesses such as its Jack of All Games distribution business. Take-Two’s plan also includes a more stringent green-light standard for games, cost cutting measures, job cuts, resolution of litigation issues and closer attention to supplier and licensor relationships.
Hickey said that Take-Two is actually in active discussions to sell its Jack of All Games business. He expects the sale to be worth between $75 and $100 million. The firm is also looking to sell its Joytech peripherals unit.
The company examining the possibility of closing “underutilized” development studios. Management said during the last conference call that it expects to create $25 million in cost reductions by the end of fiscal 2008. Hickey forecast that most of that cost reduction would come from layoffs of around 200 employees, or 10 percent of the total employee base. However, he said that the firm could lay off as many as 315 workers, or 15 percent of the total.
Take-Two’s new management, which took control earlier this year, is making a significant change in strategy in order to get Take-Two back on track. “It appears the Company is stripping out much of the product diversification effort implemented by prior management and is instead focusing on hit franchises,” Hickey wrote.
Hickey upgraded Take-Two shares rated to “buy” in the wake of the latest earnings call. Shares were up 1.7 percent to $19.65 in afternoon trading on the Nasdaq. Take-Two reported net revenue of $205 million for fiscal Q2, down $60 million from a year ago.
The company's killer app, Grand Theft Auto IV, is slated for release this October across multiple platforms.
Will there be a Civ5 at all?
Neither of the articles mentions the Civ franchise as a notable asset, by the way.
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