With Vivendi Merger Complete, Will Activision Make a Run at Take-Two?

July 10, 2008 -

The New York Times' Deal Book blog speculates today that Activision Blizzard may be eyeing an acquisition of Grand Theft Auto publisher Take-Two Interactive.

Electronic Arts, of course, has been chasing T2 for most of 2008 and has a tender offer outstanding. EA's problem, however, is that T2 shareholders just aren't jumping on board so far.

Analyst Mike Hickey of Janco Partners told the Deal Book:

We absolutely believe Activision will take a look at Take-Two. If a competitor is for sale, you take a look, and if EA is your real rival, why wouldn't you stir the pot a little bit?

However, UBS Securities analyst Ben Schachter pooh-pooh any such deal:

It is highly unlikely that Activision would try to outbid EA. They have enough on their plate at the moment.

The oft-quoted Michael Pachter of Wedbush-Morgan had his own opinion:

There are only three players involved — EA, the FTC and the arbs. Is EA likely to withdraw or lower their offer? No, because they want Take-Two. The odds of the FTC not approving the deal on market concentration is virtually zero. And if the arbs want to sell the stock, they'll sell the stock — they don't care what [T2 chairman] Strauss Zelnick thinks the stock is worth.

 


Comments

Re: With Vivendi Merger Complete, Will Activision Make a Run at

http://uk.gamespot.com/news/6193619.html?part=rss&tag=gs_news&subj=6193619

Interesting article here about Activision/Blizzard. Particuarly the last paragraph.

Personally, I think it's a bit too soon to get hopeful, there's a lot of organizing needed after a merger, but the ball isn't quite out of the court yet...

Re: With Vivendi Merger Complete, Will Activision Make a Run at

The odds of the FTC not approving the deal on market concentration is virtually zero.

The FTC has already telegraphed that it's focused on the sports market and, whether or not one agrees that the "sports game market" is the relevant one, I believe EA will have more than 80% if it swallows Take Two.  That's the sort of number that this entire pre-approval process is supposed to prevent.  The FTC has run its second request and the process will play out, but the existence of a second request is a good sign that things are going to be expensive and time consuming, regardless of the outcome, thus testing EA's devotion to the deal.  It would be most interesting if the FTC requires a spin off, but that's a little too textbook to actually happen.

As for Activision "making a run" at Take Two, maybe they could do some sort of white knight offer; however, I can't imagine their existing shareholders (or lenders) being too pleased with two acquisitions in quick order in this climate.

Re: With Vivendi Merger Complete, Will Activision Make a Run at

It'd certainly be better than EA getting them.

Re: With Vivendi Merger Complete, Will Activision Make a Run at

yes once again, stop quoting patcher.  only way the guy will no longer be relevant is if he stops getting quoted.

Re: With Vivendi Merger Complete, Will Activision Make a Run at

There are only three players involved — EA, the FTC and the arbs. Is EA likely to withdraw or lower their offer? No, because they want Take-Two. The odds of the FTC not approving the deal on market concentration is virtually zero. And if the arbs want to sell the stock, they'll sell the stock — they don't care what [T2 chairman] Strauss Zelnick thinks the stock is worth.

Correction, there are three players, EA, the FTC, and Take Two. Take Two has recommended to it's shareholders that the current offer be rejected as undervaluing the company. Contrary to what Mr. Pachter says, obviously the majority of the "arbs" do care what the chairman that they appointed thinks, as they haven't lept at EA current stale offer.

Really, at this point I'm starting to wonder what axe Pachter has to grind with Zelnick. Everything he's said thus far amounts to "Zelnick's wrong/making it up/full of it and isn't going to matter, Take Two's gonna cave."

Which is contrary to some notable stubborness on Take Two's part, and skeptism by other analysts.

 

-Gray17

Re: With Vivendi Merger Complete, Will Activision Make a Run at

I'm going to have to agree with Ben Schachter on this one. Activision Blizzard has an aweful lot of work to do in completing all things concerning their merger, couple this with them stepping out of the ESA and trying to get something like that set up internally, i think they'll have enough on their plates at the moment.

I would much rather see Activision Blizzard take over Take2 then i would EA, but it's not really up to us. Shareholders are the only ones in power.

Re: With Vivendi Merger Complete, Will Activision Make a Run at

"If a competitor is for sale"? Last I checked, this was a hostile takeover. I don't recall Take-Two ever being for sale. Not too mention, with EA already acquiing a portion of the stocks anyways, I think it'd be a bit harder for anyone else to just barge in and join the hostilities.

 
Forgot your password?
Username :
Password :

Poll

Should 'Hatred' have been removed from Steam Greenlight?:

Shout box

You're not permitted to post shouts.
PHX Corp@Adam802 We'll break out the popcorn in June12/19/2014 - 9:23pm
ZippyDSMleeMaskedPixelante: I'm itching to start it too but I will wait till the patch goes live. >>12/19/2014 - 7:52pm
Adam802Leland Yee and Jackson get trial date: http://sfbay.ca/2014/12/18/leland-yee-keith-jackson-get-trial-date/12/19/2014 - 5:24pm
MaskedPixelanteNevermind. Turns out when they said "the patch is now live", they meant "it's still in beta".12/19/2014 - 5:07pm
MaskedPixelanteSo I bought Dark Souls PC, and it's forcing me to log into GFWL. Did I miss something?12/19/2014 - 5:00pm
Matthew Wilsonhttp://arstechnica.com/tech-policy/2014/12/republicans-may-have-plan-to-save-internet-providers-from-utility-rules/ this is intreasting. congress may put net nutrality in to law to avoid title 2 classification12/19/2014 - 2:45pm
Matthew Wilsonhttp://www.polygon.com/2014/12/19/7421953/bullshit-cards-against-humanity-donated-250k-sunlight-foundation I have to admit I like the choice o organization. congrats to CAH.12/19/2014 - 1:51pm
E. Zachary KnightIf you are downloading a copy in order to bypass the DRM, then you are legally in the wrong. Ethically, if you bought the game, it doesn't matter where you download it in the future.12/19/2014 - 12:06pm
InfophileEZK: Certainly better that way, though not foolproof. Makes me think though: does it count as piracy if you download a game you already paid for, just not from the place you paid for it at? Ethically, I'd say no, but legally, probably yes.12/19/2014 - 11:20am
ZippyDSMleeAnd I still spent 200$ in the last month on steam/GOG stuff sales get me nearly every time ><12/19/2014 - 10:55am
ZippyDSMleeMaskedPixelante:And this is why I'm a one legged bandit.12/19/2014 - 10:51am
ZippyDSMleeE. Zachary Knight: I buy what I can as long as I can get cracks for it...then again it I could have gotton Lords of the Fallen for 30 with DLC I would have ><12/19/2014 - 10:50am
MaskedPixelantehttp://www.joystiq.com/2014/12/19/marvel-vs-capcom-origins-leaving-online-storefronts-soon/ Speaking of "last chance to buy", Marvel vs. Capcom Origins is getting delisted from all major storefronts. Behold the wonders of the all digital future.12/19/2014 - 9:59am
MaskedPixelanteSeriously, the so-called "Last Chance" sale was up to 80% off, while this one time only return sale goes for a flat 85% off with a 90% off upgrade if you buy the whole catalogue.12/19/2014 - 9:37am
E. Zachary KnightInfophile, Tha is why I buy only DRM-free games.12/19/2014 - 9:37am
MaskedPixelanteNordic is back on GOG for one weekend only. And at 85% off no less, which is kind of a slap in the face to people who paid more during the "NORDIC IS LEAVING FOREVER BUY NOW OR FOREVER HOLD YOUR PEACE" sale, but whatever...12/19/2014 - 9:28am
InfophileRe PHX's link: This is one of the reasons the digital revolution isn't all it's cracked up to be. There's also the flip side where Sony can block access to games you've bought if they ban your account for unrelated reasons. All power is theirs.12/19/2014 - 8:52am
MaskedPixelantehttp://uplay.ubi.com/#!/en-US/events/uplay-15-days You can win FREE GAMES FOR A YEAR! Unfortunately, they're Ubisoft games.12/18/2014 - 6:29pm
Papa MidnightAh, so it was downtime. I've been seeing post appear in my RSS feed, but I was unable to access GamePolitics today across several ISPs.12/18/2014 - 6:06pm
james_fudgeSorry for the downtime today, folks.12/18/2014 - 5:54pm
 

Be Heard - Contact Your Politician