Sections

Analyst believes a Take-Two buyout is a “reasonable bet”

Tuesday, 24th May 2011 17:29 GMT By Stephany Nunneley

With success, comes “a reasonable bet” for a company to be taken over – at least as far as analysts are concerned when mentioning Take-Two.

According to Sterne Agee analyst Arvind Bhatia, the success of L.A. Noire for the firm’s Rockstar Games and the possibility of GTA IV in “FY12 or a few months later,” a “takeout,” is a “reasonable bet” as far as the analyst is concerned.

“Whether GTA V is released in late FY12 or a few months later, i.e., in early FY13, should not materially change the company’s intrinsic value,” he told Industry Gamers. “Besides, Take Two investors know that the risk of game delays and the accompanying earnings volatility is inherent to their investment in this stock. What should be more important is that with the strong launch of L.A. Noire last week, Take-Two has created yet another valuable franchise.

“As we have said, we think the company has now made a strong case for generating average annual EPS … With the GTA catalyst still ahead and the possibility of a takeout still a reasonable bet.”

Ever since EA tried to buyout the firm in 2008, it seems like every time the firm has a hit on its hands and new takeover rumor surfaces.

Take-Two will report its Q4 2011 financials later today, and a conference call to investors is expected at 4.30pm EST after the close of the stock market.

As always, we’ll be listening-in for anything interesting.

Breaking news

7 Comments

Sign in to post a comment.

  1. Christopher Jack

    Activision could benefit the most by buying out Take Two, right now Acti seems to be relying solely on Call of Duty but Take Two has many franchises, several of which are AAA quality but I think one of the biggest advantages would be their sports division-If EA were successful in their attempt, they could have monopolized the sports genre of the gaming industry & that’s why I’m glad that they failed.

    This may sound funny but I think that Nintendo would be next in line to benefit the most from buying Take Two out, mainly because they have no studios for ‘hardcore’ development & if they wish to keep their innocent look, they could just keep Take Two’s current name(Ironically the same as Rockstar’s situation) or re-brand it altogether, either way-they’ll be exclusive to Nintendo’s consoles.

    #1 3 years ago
  2. Night Hunter

    Please, God no!

    This would be absolutely horrible. I’m not a big Rockstar Fan, but if someone like Activision gets their hand on them we’re all pretty much fucked, if you pardon my french.

    #2 3 years ago
  3. Shonak

    They should just leave Take Two alone. It’s that easy.

    #3 3 years ago
  4. NightCrawler1970

    Take 2, will say no to Acti, even they come with Billion Dollar deal….

    Ifinity Ward was Acti-cash cow, and i think Take 2 and RockStar & 2k are allot smarter to join with greedy company like Activision… there way of taking over a company, by buying out, than buy stock(75%), when Acti is in charge, they gonna fired everybody, and Acti take over the bonus-situation.. than forclose Take-2, RockStar, and 2K… just for the heck of it… Activision got the money, splitting the cash with the big bosses….

    HELL NO!! not gonna happens…

    #4 3 years ago
  5. freedoms_stain

    They’d be better building up their own profile rather than selling out.

    #5 3 years ago
  6. Hunam

    I don’t see why 2K would ever sell to another publisher. They are on the precipice of being the third behemoth alongside EA and Acti. I mean they have the Rockstar games each doing massive business and they have their line of yearly sports games, plus Civ and a collection of great mainstream and core franchises. At the moment they are rebuilding and in a few years they’ll be a force to be reckoned with once again.

    #6 3 years ago
  7. freedoms_stain

    @6, why does any successful company ever sell out? Because the people in charge, be it an individual, small group of entrepreneurs or a large group of shareholders, are by and large, greedy fucks, and if enough cash is dangled in front of them they’ll cave.

    It really depends who’s in charge right now. If it’s a dude or a group who built the company from scratch and take pride and pleasure in running it and building it up day to day, then they’ll likely remain independent, if they’re owned by shareholders, it’s probably just a matter of time.

    #7 3 years ago