Dealscape's sister blog Tech Confidential examines the renewed speculation that troubled video game publisher Take-Two Interactive Software Inc. may be in play. Take-Two is a perennial buyout candidate thanks to its troubled accounting history, which ultimately led to an activist investment group's coup in March.
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Tech Confidential notes:
Shares of Take-Two, which closed at $20.14 the day after the management ouster on March 29, were trading at $14.80 midday Tuesday, a 27% decline. Figuring in an estimated 20% premium on its shares, the company might have fetched a rather steep $1.8 billion from a buyer eight months ago. Under the same premium assumption, the company would go for roughly $1.3 billion now, making it significantly more attractive to potential acquirers like Electronic Arts Inc. or Microsoft Corp.
However, an EA acquisition is unlikely. Although EA is a serial acquirer, it also has eschewed the controversial violent game titles that are Take-Two's specialty. Additionally, EA is still digesting its recent acquisition of VG Holdings, the parent of video game studios Bioware and Pandemic. So despite the enticing $500 million discount, don't count on EA purchasing Take-Two any time soon, or ever. — Matthew Wurtzel
See story from Tech Confidential
See TheDeal.com: Elevation sells VG to EA
See Dealscape: Take-Two in play, or just a 'Halo' bump?
See Dealscape: Riccitiello's return portends EA M&A
See Dealwatch: Take-Two
