Take-Two Secures an NBA’s License Extension With a $1.1 Billion Deal
According with insiders’ reports Take-Two Interactive has extended the NBA’s License deal for an undisclosed length, The Wall Street Journal reports that it’s a $1.1 billion deal.
Take-Two kept the rights to continue the 2K series of basketball games and they’ve the rights to make a NBA game on any platform, this includes iOS and Android.
Licensing fees for major sports leagues traditionally range from 10% to 15%, analysts told the WSJ. They estimate that $1.1 billion places this deal at the top end of this spectrum, if not higher, based on estimated of the series’ sales.
NBA 2K is one of Take-Two’s key best-sellers, with the the most recent outing — NBA 2K19 — selling more than ten million units to date, a record for the annual franchise. It was also the best-selling sports game, and third best-selling overall, of 2018 in the US, according to NPD data.
In addition to sales, the microtransactions from the NBA 2K MyTeam mode have also proven to be a major source of revenue for Take-Two — although this has been removed in some regions as the use of loot boxes and other chance-based microtransactions comes under tighter regulations.
“The NBA has been an outstanding partner throughout the history of the NBA 2K franchise, contributing significantly to its unparalleled success and the ability to grow its audience around the world across a myriad of platforms and offerings,” said Strauss Zelnick, Chairman and CEO of Take-Two. “We’re thrilled to be in business with Adam and the entire team at the NBA, and enter into the longest-ever partnership extension between our organizations. Together, we’re confident that we will continue to find new and innovative ways to captivate and engage basketball fans, and expand further the success of the NBA 2K brand.”
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