Pachter: Why EA will win

By Patrick Garratt
26 February 2008 20:10 GMT

There’s a lengthy piece here from Wedbush Morgan analyst Michael Pachter on why he thinks EA will succeed in its bid to acquire Take Two. Snip:

If the offer appears unacceptable to shareholders, we think EA will withdraw it, and we expect EA to compete more aggressively in sports, by cutting price dramatically. By our reckoning, EA could cut pricing on its basketball and hockey games by as much as $30, incurring pain, but causing Take-Two’s operating profits to be halved for the fiscal year. We think that such a strategy will force Take-Two back to the bargaining table.

Gripping. Hit the link for more.

Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission. Read our policy.

VG247 logo

Buy our t-shirts, yeah

They're far more stylish than your average video game website tat.

VG247 merch