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Take-Two Stock Takes Steep Dive After EA's Withdrawal

Many gamers applaud Take-Two "fending off" EA's buyout attempts, and although EA has pulled out, it's not all roses. After EA decided to abandon its pursuit of the Grand Theft Auto IV publisher, Take-Two stocks took a nasty tumble.

According to Reuters, their stock fell nearly 30% on Monday, obviously due to the recent EA-related events. EA's former bid of $25.74/share (about $2 billion) suddenly looks extraordinarily generous, as Take-Two shares were trading at only $15.45 when the Nasdaq opened today. And perhaps this is the reason why EA decided to cut off takeover talks, as hinted at by EA Senior Vice President for Corporate Development, Owen Mahoney: "We were very convinced the value of the transaction would decline over time and have come to feel more and more strongly about our own business." At the same time, Take-Two Chairman Strauss Zelnick isn't too worried, as he says the publisher is "still in talks with other parties on strategic alternatives," mentioning his company was "on a strong growth track." One UBS analyst, Benjamin Schachter, said in a research note that Take-Two may be seeking another buyer, and Ubisoft apparently has potential in that area.

There's always more going on behind the scenes that we're never aware of, as evidenced by this development. Did EA know Take-Two's shares would fall? Or did they fall entirely as a result of EA's withdrawal? And will Take-Two eventually sell to someone? Well, all in due time, fellow industry followers, all in due time...

9/15/2008 Ben Dutka

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Comments (14 posts)

Aftab
Monday, September 15, 2008 @ 1:47:52 PM
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Makes things plainly clear how arbitrary stock value can be.

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dillonthebunny
Monday, September 15, 2008 @ 2:34:00 PM
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lol.. maybe Sony can "take T2 under their wing"...?

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Ed_Wayne
Monday, September 15, 2008 @ 2:55:22 PM

Man, that would be awesome. Won't happen though.

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Zaben
Monday, September 15, 2008 @ 3:09:02 PM
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W00 Go Ubi.

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tramp
Monday, September 15, 2008 @ 3:09:57 PM
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not a chance,would be sweet tho.

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Zapix
Monday, September 15, 2008 @ 3:16:57 PM
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With all that's happened in the US economy today, who the hell knows.
Could be investment panic.

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ThePoetRazel
Monday, September 15, 2008 @ 5:46:24 PM
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You know how the stock market goes crazy over everything. Too much coffee and not much sleep will do that to you.
Take-Two's stock will be back on track in no time. Especially if they turn out a few more golden titles.

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orangpelupa
Monday, September 15, 2008 @ 8:06:21 PM
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or this is just EA's strategy to lower T2 stock

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Xanavi23
Monday, September 15, 2008 @ 9:43:22 PM
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This means nothing, only that there was alot of buying and value in the T2 stock given the impending purchase of T2. However given it fell through its only normal for the value to drop. Ultimitely im glad they didn't get bought, i still haven't played GTA4 but the video game world is better off without a monopoly developer.

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LightShow
Monday, September 15, 2008 @ 10:00:35 PM
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Thats the funny thing about the stock market. Stock brokers are twitchier than a hyperactive jack-rabbit, and pretty much act like the sky is falling if ANYTHING happens.

dont worry, it'll be back up there in no time

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Xanavi23
Tuesday, September 16, 2008 @ 5:42:24 PM

EXXXACTLY.

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Jed
Monday, September 15, 2008 @ 11:56:53 PM
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The only reason T2's stock got so high was because everyone thought EA was going to pay so much for it, now they know it's not going to happen, and all the people that wanted to make a quick buck are gone.

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BlinkBoy
Tuesday, September 16, 2008 @ 8:43:22 AM
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So the death of the American economy system has nothing to do with this?

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shaydey77
Tuesday, September 16, 2008 @ 2:57:34 PM
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I dont care who buys them as long as they keep pumping out good games im happy..actually anyone except microsoft or sony!!i didnt mind EA bying them becasue all gamers would get to play their games..i HATE it when one side gets games the other console hasnt got throught bought studios..i dont mind their own development studios but just not purchased ones.

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