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

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

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.

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