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Analyst: Take-Two Now Very Attractive To Possible Buyers

When you show you're more than a one-trick pony, potential buyers become interested.

Back in 2008, Take-Two Interactive was a highly sought-after commodity after Grand Theft Auto IV hit big. Electronic Arts tried to pick them up but after an elongated negotiation, the bid fell through as Take-Two believed they were being undervalued. But after last year's blockbuster (Red Dead Redemption) and what appears to be another non-GTA winner this year (L.A. Noire), Take-Two is once again ripe for the picking. Or at least, that's what Sterne Agee analyst Arvind Bhatia told IndustryGamers:

"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. 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 of $1.00 going forward ($1.35 ex the MLB contract that expires in 2012). With the GTA catalyst still ahead and the possibility of a takeout still a reasonable bet, we are reiterating our $19 price target which is based on our sum-of- the-parts valuation."

Yeah, GTAV is coming and so is Bioshock Infinite, so Take-Two certainly appears attractive. But whoever wants to buy 'em has to come with the cash; EA offered $2 billion back in '08 and that didn't fly, so...

Tags: gta, grand theft auto, take two, take two buyout

5/24/2011 9:31:25 AM Ben Dutka

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Comments (24 posts)

Excelsior1
Tuesday, May 24, 2011 @ 9:57:16 AM
Reply

whatever, i've been hearing this for years and it still has not happened. i actually doubt take two will be bought out at this point.

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AshT
Tuesday, May 24, 2011 @ 10:08:45 AM
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hmmm....i'm wondering who will be the possible buyer

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Lawless SXE
Tuesday, May 24, 2011 @ 1:32:38 PM

Square-Enix
/walks away whistling nonchalantly.

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Lawless SXE
Tuesday, May 24, 2011 @ 1:35:37 PM

That's maybe a mite too fanboyish. Activision hasn't forced Blizzard to release Diablo III, and certainly didn't do so for Starcraft 2 (although splitting up the campaign does reek of Acti tactics to me). Surely they'd understand that for the T2 studios to create their unforgettable experiences they need time. They may be big business, and bottom line may be key but... Ah, this is humanity I'm talking about. Who really cares about creative propriety!
Peace.

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bebestorm
Tuesday, May 24, 2011 @ 10:36:23 AM
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I hope they arent bought out by anyone.

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Looking Glass
Tuesday, May 24, 2011 @ 10:37:35 AM
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I agree with Excelsior1.

If an offer of 2 billion dollars wasn't good enough then what is? I seriously doubt that anyone would be willing to pony up the kind of money necessary to satisfy Take-Two's ego. And to make matters even more problematic LA Noire's release has undoubtedly inflated Take-Two's ego even more, thus making the task of buying them all the more monumental.

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Kangasfwa
Tuesday, May 24, 2011 @ 12:51:20 PM

Blizzard was bought for over 7 billion IIRC and they have about the same number of blockbuster IPs.

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Looking Glass
Tuesday, May 24, 2011 @ 2:30:31 PM

@Kangasfwa

Fair enough. But on the other hand I really don't see Take-Two selling out to Activision. The first reason being that they're doing great on their own and they really don't seem to have any real reason to sell to anyone in general. And second I especially don't see them selling to Activsion of all things. The reason for this is that big legal mess with Infinity Ward. Bobby Kotick doesn't really seem to be the most honorable or trustworthy boss one could have.

And speaking of which if I'm not mistaken I think the start date for that trial was yesterday. I don't know what's going to happen but one thing's for sure: it's not going to be pretty.
Last edited by Looking Glass on 5/24/2011 2:31:09 PM

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Kangasfwa
Tuesday, May 24, 2011 @ 4:35:08 PM

Agreed. With the this recent success I think Take-Two will develop the same ambition(s) as Ubisoft (being the biggest).

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WorldEndsWithMe
Tuesday, May 24, 2011 @ 10:51:23 AM
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I hope Activision never gets their mitts on em. And you can stuff GTA5, just give me my Bioshock!

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Lord carlos
Tuesday, May 24, 2011 @ 11:04:21 AM
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If GTA V comes out this gen it will be 2014 at least,R* north takes care of the console gta releases and their busy with Agent!
I suppose they could be dual developing,with Agent futher along than gta v but i'm skeptical.
Max payne 3 in 2012-2013,same goes for Agent or maybe 2013-2014,so i dunno about a GTA V this gen.
If people remember last gen we had a numbered gta (III) then two side stories(vice city & san andreas)this gen we have a numbered gta (IV)and two side stories (lost & damned & ballad of gay tony)these dlc side stories could be counted as one side story i suppose but i really believe that GTA V will be a next gen title with the possibility of one more side story this gen & oh yeah Take Two are worth a lot more nowadays but i hope the don't ever get bought by a bigger corporation.

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RobiinzZ
Tuesday, May 24, 2011 @ 11:10:21 AM
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I dont see why they need to be bought, seem to be bringing out awsome games just fine.

and Activision, dont even think about it..

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Zorigo
Tuesday, May 24, 2011 @ 11:29:15 AM
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If activision do, i will cry my eyes out

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Claire C
Tuesday, May 24, 2011 @ 11:44:40 AM

Me too!!! :_(

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I_defenestrate
Tuesday, May 24, 2011 @ 11:30:14 PM

Agreed. In a perfect world, Sony would scoop them up for exclusives. In this world however, I'd rather EA get them than Acti.

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Lawless SXE
Tuesday, May 24, 2011 @ 1:27:48 PM
Reply

of course it is, but the question is on whether or not T2 is interested in selling out to a larger company, and I think not. Yes, gaming seems to be relegating itself into the upper echelons of publishers, with very few companies, but they being massive conglomerates ruling the roost. Of course EA and Activision are the biggest, followed probably by S-E, Ubisoft, the three first party companies, T2, THQ, Bethesda, and then you start to trickle down to others like Atlus.

But T2 can survive on its own without the intervention of a larger company, as they are not only keeping, but growing their portfolio. GTA is their perennial best seller, but Bioshock is gaining in prestige with every new game. L.A. Noire and Red Dead are both awesome possibilities for the future, and then they also have Max Payne and AGENT. 2K also seems intent on making The Darkness into a bank franchise, along with their sports games, the upcoming X-Com, the Civ games, DNF among others.

Of course Take-Two is an interesting buyout prospect. They could make a TON of money for whoever chooses to do so, but I honestly think that they're strong enough on their own, and should remain independent.
Peace.

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jdt1981
Tuesday, May 24, 2011 @ 2:58:17 PM
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I suppose it's too much to hope for that Sony would buy T2... Imagine all those games being Playstation exclusive. That's highly unlikely though, to this point in time Sony has only acquired small individual studios.

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Lairfan
Tuesday, May 24, 2011 @ 3:39:28 PM
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They're getting so big right now that I highly doubt that they would want to sell out to someone bigger. Hell, in a couple years they'll probably be up there with EA and Activision, given their immense recent success. I mean, when you can turn a completely original and unfamiliar concept like LA Noire into a best selling game, you don't need someone else to support you.

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BikerSaint
Tuesday, May 24, 2011 @ 8:19:01 PM

sony360gamer,

Just an FYI, that link doesn't work, it gives out a 404 error

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LegendaryWolfeh
Wednesday, May 25, 2011 @ 2:37:47 AM

Works for me Biker, did you replace the 'dot' with a '.' in the url? Obviously either sony360gamer thought we can't post links or did it intentionally to not have to wait for someone to allow it.

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BikerSaint
Wednesday, May 25, 2011 @ 4:33:49 PM

LegendaryWolfeh,
LOL, thanks.

I didn't even notice the way he wrote it so I had just cut & pasted it...my bad.

BTW, Come to find out, I had already read a similar article about those new contracts on a different site yesterday.

Very smart move on Take-2's part, they've made the company stronger, & they also make any buy-out attempts even much more costlier too.
Last edited by BikerSaint on 5/25/2011 4:40:34 PM

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Deleted User
Tuesday, May 24, 2011 @ 4:45:39 PM
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Rockstar Games will NEVER be a part of Kotick's pathetic empire. The Housers will not have their franchises destroyed by a piece of garbage company like Activision. They will stay with Take Two or publish their own games. End of story.

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BikerSaint
Wednesday, May 25, 2011 @ 1:50:45 AM
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All I want to hear from Take-2 is the catch-phrase...."Can't touch this"

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___________
Wednesday, May 25, 2011 @ 4:35:37 AM
Reply

you would have to be mad not to buy 2K!
like apple there freaking printing money!!!!!

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