Take-Two Interactive Software Inc. shares fell as much as 5% in extended trading after the company announced plans to sell $1 billion of new stock to investors.
The New York-based video-game maker plans to use the proceeds for general corporate purposes, including repayment of debt and future acquisitions, according to a statement Tuesday. The company declined to comment further on the sale.
Earlier this month Take-Two said it would delay its most highly anticipated new title, Grand Theft Auto VI, until May of next year. The stock is up 29% this year through the close of trading Tuesday. Its market value is about $42 billion.
JPMorgan Chase & Co. and Goldman Sachs Group Inc. are acting as lead managers.
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