(Reuters) – Take-Two Interactive Software Inc will pay the National Basketball Association (NBA) and its players’ union up to $1.1 billion over seven years, the WSJ reported on Tuesday, citing a person familiar with the matter.
The agreement allows Take-Two’s 2K studio to continue making its NBA 2K videogame franchise and other NBA-branded games, including smartphone apps, according to the WSJ report.
The deal value, based on a percentage of sales of Take-Two’s NBA games, is more than double the organizations’ prior licensing tie-up in 2011, the WSJ reported.
Take-Two and the NBA did not immediately respond to a request for comment.
Reporting by Arjun Panchadar in Bengaluru; Editing by Shounak Dasgupta