Posted Feb 25, 2008 at 10:20AM by Enrico S. Listed in: Opinions & Analysis Tags: Electronic Arts, 2K Sports, EA Sports, Take-Two Interactive, Michael Pachter, Strauss Zelnick
Ó

Michael Pachter - Image 1Video game publisher and developer Electronic Arts has offered US$ 2 billion for Take-Two Interactive. Strauss Zelnick, the chairman of the said company, along with the rest of the board has politely declined this offer. At this point, everyone is holding their breath to see what happens next.

Well, almost everyone. Reacting to the recent news, Wedbush Morgan Securities analyst Michael Pachter has predicted that, in Gamespot's words, EA will be conducting a "hostile" takeover of the company. He pointed out that Take-Two will be joining the EA family one way or another:

By going public, EA is telling you, 'This deal is happening.' The only way you can credibly reject the deal is if there's a better one behind it. I don't see how anyone can afford to pay this much or more for the stock.


An interesting theory that Pachter also brought up is that EA is more interested in the sports division of the company rather than its other IPs. He noted that if the company could eliminate 2K Sports which is EA Sports' primary competitor in the market the US$ 2 billion investment made will be well worth it. Here's what he had to say:

There's only one company that can make sense out of an acquisition of Take-Two, and that's EA. For anyone else to buy Take-Two, they'd have to decide either to bloody themselves competing in sports against EA, or shut down the sports business and give up. Either way, there aren't many people who are going to pay a premium for the right to engage with EA or shut down that business.


So there you have it from the analyst's perspective. While Pachter does make a lot of valid points, the fact of the matter is we're all in the dark on what's happening between both companies.

It makes one wonder though if Take-Two Interactive will fold or keep fighting. But whatever the case, if this proves true, you can be sure the impact would be felt across the industry - especially since EA publishes across all major platforms, whether console or handheld.


[Via Gamespot] Permalink  |   Email this  |   Linking Blogs   |   Digg It!

Bookmark / Find this article on:


6 Comments


Sort by:
   by cyclone0001 - 2008-02-25
 » thinks of bad austin powers joke

it was 2 billion dollars.


   Re: cyclone0001 - 2008-02-25
 » now its correct

its fixed now.
   by Advertising -
   by Popson - 2008-02-25
 » Ughh...!

This is sad. It only means bad for the consumer. If they acquired Take-Two we could only expect their sports franchises to suck even more. If EA does in fact take over Take-Two, we can kiss goodbye to any decent updates in their sports franchises, just like when EA took sole possession of the NFL licensing, Madden has never been the same.

EA is going to monopolize the gaming industry.


   Re: Stealth! - 2008-02-26
 » lol

Not if MS can say anything on it. They're going to do it first.

@Kingofdaberbz
NHL08 was better to 2k8 counter part. So i think for hockey 2k games hasn't been that great. I rather play EA Hockey games than 2k.

As for the others, i could care less i rarely play football games and Basketball games. MLB the show is the best. I may get this years one.
   by Jin Wu - 2008-02-25
 » OK?

If he's such a freaking genius, how come he didn't predict EA's attempted takeover?

   by Kingofdaberbz - 2008-02-25
 » .......

Please I hope this doesn't happen 2k makes the best sports games EA games SUCK! PLEASE Microsoft BUY TAKE 2 n if not u ms at least Activision



Featured Content
QJ.NET Blog Network RSS Feeds
MyQJ Feed / PDA
MyQJ RSS / PDA
Blog of Blogs Feed / PDA
QJ.NET RSS / PDA
Gaming Consoles Feed / PDA
Nintendo DS RSS / PDA
PlayStation 3 RSS / PDA
PSP Updates RSS / PDA
Wii RSS / PDA
Xbox 360 RSS / PDA
PC Gaming Feed / PDA
Age of Conan RSS / PDA
Games for Windows RSS / PDA
MMORPG RSS / PDA
Tabula Rasa RSS / PDA
World of Warcraft RSS / PDA
Science Feed / PDA
Science RSS / PDA
Technology Feed / PDA
Apple RSS / PDA
Gadgets RSS / PDA
Mobile RSS / PDA
Photography RSS / PDA
Add QJ.NET
Add to My Yahoo!
Google Reader Subscribe with Bloglines
Add  to your Kinja digest Subscribe in NewsGator Online
Subscribe with Pluck RSS reader Add 'www.qj.net' to Newsburst from CNET News.com
Subscribe with SearchFox RSS del.icio.us www.qj.net
Add to Technorati Favorite! Add to My AOL
furl! it Stumble for Treehugger!

 Username: 
 Password:
Forgot password
New user registration



Poll
What's keeping you awake?
Categories

Emulators
Titles
Archives