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Pachter: Take-Two Buyout "Inevitable"

Ever since EA made it clear they wish to acquire Take-Two Interactive, most analysts have agreed that the handwriting is already on the wall. Take-Two declined the offer at the time, but things could change...rapidly.

EA made a tender offer of $26/share yesterday morning, which caused Take-Two management to warn its shareholders of accepting the offer for "at least 10 working days." But according to the Videogaming247 blog, Wedbush Morgan analyst Michael Pachter said they only did this to see if more offers will arrive in the next week. However, in the end, a sale is "inevitable."

I think Take-Two hopes that a competing offer may surface, he added. This hope is somewhat nave, given that the whole world has been aware of EAs 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-Twos 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.

At this point, it seems to be only a matter of time...how much longer can Take-Two resist EA and its very deep pockets? Answer- probably not long.

3/13/2008 Ben Dutka

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Comments (6 posts)

K Phantom
Thursday, March 13, 2008 @ 11:04:56 PM
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Oh please no, I hate to see GTA receiving the EA treatment. Lets face it GTA is the most important thing Take Two makes.

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Zapix
Thursday, March 13, 2008 @ 11:16:38 PM
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haha, gamers should unite and protest, sending messages to EA refusing to buy GTAIV and any games created by Take-Two in the event they take over the company.

Honestly, I was going to buy GTAIV seeing as the details coming out make it seem relatively good, although not really my kind of game. If EA is taking it though, screw them. I'm not going to give them even $1 seeing how sleezy and pretentious they are

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The Cheat
Friday, March 14, 2008 @ 1:31:22 AM
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I just wrote a business report on EA's operations and this could just be another example of what i was talking about... hopefully EA wont ruin Take two... like they did to so many dev teams...

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Gabriel013
Friday, March 14, 2008 @ 2:35:39 AM
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When this happens I doubt we will see the likes of Manhunt and GTA ever again, or atleast not the way they are now. They will end up diluted for a younger audience.

I thought that $26 per share was roughly what the TT shares are hitting anyway so the offer isn't as appealing as when it was first made? The shareholders need to hold out and see if they can at the very least sting EA for even more cash.

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Bugzbunny109
Friday, March 14, 2008 @ 2:11:34 PM
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EA is gay

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Mystearica
Friday, March 14, 2008 @ 10:12:29 PM
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It does sound like it's gonna happen! I mean remember their stock dipping just because they refused. EA could destroy a company without even actually touching it. I'm hating this more than anyone here trust me... but unfortunately it does look like it is going to happen :(

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