As reported by Silicon Valley Insider, Take-Two Interactive execs claimed in a conference call this week that they have potential suitors other than EA. Forbes speculates that, if such suitors really exist, they might be Activision or Ubisoft.
GP: Personally, I wonder if it might make some sense for Sony to go after Take-Two. That would make the GTA series a permanent PS3 exclusive, supercharge system sales, and they could sell off the rest.
Meanwhile, GameSpot reports that Evan Wilson, financial analyst with Pacific Crest Securities, told investors that once you get past Rockstar, there’s not much to like about T2:
Rockstar has supported this organization for too long and it is right to spend every dollar that it can get from Take-Two for keeping the business alive. Unfortunately, management appears to be doing the same thing without it being nearly as deserved.
At the same time as its cost structure is deteriorating, management is telling investors that it is the most efficient organization in the business. That simply is not true. Management talks about having a lean sales, marketing, and corporate infrastructure behind its development talent. We disagree with this as well.
Wilson also dinged Take-Two for missing release schedules and recommended that investors take EA’s buyout offer before it disappears:
If it appears that virtually every major game has been delayed, you would be correct.
It is starting to appear that the company is back to where it started. After the success of Grand Theft Auto [IV], it will be looking at a bloated cost infrastructure relative to its revenue opportunity, which will likely be further muted by game delays and underperformance.
We believe that the risk of EA dropping its bid for [Take-Two] is greater than the reward of EA coming back with a modestly higher bid, and we continue to recommend that investors take profits. EA’s $25.74 offer is more than fair, in our view.