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Shares of

Take-Two Interactive Software

(TTWO) - Get Take-Two Interactive Software, Inc. Report

jumped 19% in Wednesday trading after the company topped Wall Street's earnings estimates and disclosed plans to acquire another videogame maker.

The New York-based company said it beat analysts' third-quarter expectations by a penny and raised its full-year guidance. Additionally, the company said it will acquire California-based game publisher

TDK Mediactive


for $22.7 million.

Recently, shares of Take-Two were up $5.70 at $35.45.

For the quarter ended July 31, Take-Two earned $7.7 million, or 18 cents a share, compared with $4.8 million, or 12 cents a share, last year. Analysts were expecting 17 cents a share. Total sales were $155.6 million, up 27% from last year's $122.5 million.

The videogame publisher increased its 2003 sales guidance to $1.015 billion with a profit of $2.30 a share. Analysts are calling for earnings of $2.29 a share on sales of $984.6 million. In May, the company had predicted sales of $975 million and earnings of $2.28 a share.

Looking to the first quarter ending Jan. 31, 2004, the company expects to earn $1.21 a share on sales of $412 million. Wall Street's earnings consensus is $1.27 a share. For fiscal 2004, Take-Two forecast revenue of $1.18 billion with earnings $2.68 a share, ahead of analysts' estimate of $2.48.

The company also said Wednesday that it will buy TDK Mediactive, a publisher of video games based on licensed properties, such as

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Pirates of the Caribbean


The Land Before Time

. In the fiscal year ended March 31, TDK lost $8.3 million, or 36 cents a share, on sales of $42.2 million. Take-Two expects to close the acquisition of TDK in the first week of November.

The acquisition price includes 55 cents a share for each of TDK's 23 million shares outstanding, the purchase of debt of about $9.9 million and about $200,000 to retire stock options.

Take-Two expects the acquisition to add roughly $35 million in sales in 2004, mostly in the second half of the year, but the transaction probably won't have an effect on the company's earnings next year.

Also, Take-Two's Rockstar Games unit will unveil a "double pack" of its video games

Grand Theft Auto 3


Grand Theft Auto: Vice City

for both Xbox and PlayStation2. The company said the double pack will be in North American stores on Oct. 22 for PlayStation2 and on Nov. 4 for Xbox.