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Pachter on Take-Two buyout: "A sale is inevitable"

Wedbush Morgan's Michael Pachter is in no doubt that EA will now acquire Take-Two, telling videogaming247, "A sale is inevitable."

EA made a $26 per share tender bid for Take-Two this morning, a move which has just promoted Take-Two's management to warn its shareholders off accepting the offer for at least ten working days.

Pachter explained that, in his opinion, the desired delay was to allow time for more offers to emerge.

"I think Take-Two hopes that a competing offer may surface," he added. "This hope is somewhat naïve, given that the whole world has been aware of EA's overture for the last 18 days, and no interested parties have surfaced. In my view, EA is in a unique position to pay all cash and consolidate Take-Two's operations into its own while eliminating most of the overhead. Other video game companies could do the same on the operations side, but none have the cash. No media company could gain the operating synergies. So there will not be any other purchasers."

Smell that? It's blood.

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Patrick Garratt

Founder & Publisher (Former)

Patrick Garratt is a games media legend - and not just by reputation. He was named as such in the UK's 'Games Media Awards', the equivalent of a lifetime achievement award. After garnering experience on countless gaming magazines, he joined Eurogamer and later split from that brand to create VG247, putting the site on the map with fast, 24-hour a day coverage, and assembling the site's earliest editorial teams. He retired from VG247, and the games industry, in 2017.

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