Take-Two Interactive Software Inc.'s
shares are up with the highly anticipated release of "Grand Theft Auto IV," and that has bloggers and discussion boards chatting about the possible takeover of the New York-based company by industry leader Electronic Arts Inc.
Continue reading below
When EA made its unsolicited $26 a share bid, it originally said it wanted to close the deal before the release of the game, which is expected to break industry sales records, and it would walk away if that didn't happen. However, it recently extended its offer for Take-Two until May 16, clearly an indication that it will continue to pursue Take-Two. With the launch of the game, many bloggers believe it gives Take-Two leverage in negotiations with EA.
A blogger at Kotaku wrote:
As of press time today, Take-Two is worth more per share than Electronic Arts is offering to pay for it -- at times approaching a whole dollar per share higher than EA's acquisition bid.
Meanwhile, analysts told Joystiq that they expect the bid may increase:
Janco Partners analyst, Mike Hickey, suggested that EA shouldn't be afraid to boost its standing $26-per-share offer. "EA should just pay up and just get this deal done and quit being so cheap about it," he said. "You've made a $2 billion bid ... and you're worried about three or four dollars per share."
The discussion boards are also buzzing with a mixed bag from investors. One Google finance user mgiusto wrote:
This game by itself I could see taking TTWO from $18 to $24-$25 and that is about it. If EA were to retract their bid, I'd see TTWO falling to $25, maybe $24. The hype of GTA IV is already built into the stock price that EA got TTWO to, that is why you don't see it going higher today.
Another, jastro407, in a different thread wrote:
EA buying GTA? Not going to happen. The TTWO investors have been waiting for the GTA4 release since word first came out about the game. EA took a bold move and try to buyout their competition.
The only thing certain, is that with the release of "GTA IV" the offer has gone into extended play. - Maria Woehr
See TheDeal.com: EA extends Take-Two offer
See Tech Confidential: Game almost on for EA and Take-Two
See Google Discussion
