In Wake of EA Pullout, T2 Stock in Free-Fall

September 15, 2008 -

Reaction has been swift to yesterday's report that EA was giving up on its quest to acquire Grand Theft Auto publisher Take-Two Interactive.

As GP predicted yesterday, Reuters is now reporting Take-Two's stock price has plunged. Indeed, from Friday's close just under 22, as I write this the stock [TTWO] has dropped to 16.44. On the other hand, the market as a whole is experiencing a broad sell-off today as shockwaves from the collapse of Lehman Brothers and the purchase of Merrill-Lynch ripple through Wall Street. At the same time, EA [ERTS] stock is also down from Friday's closing price of 44.99.

Reuters quotes UBS analyst Benjamin Schacter on the EA-T2 situation:

While (Electronic Arts) will not reveal details about its exact reasons for walking, the fact that it did not make any offer after further due diligence will certainly raise some eyebrows.

 

In our view, Ubisoft could be a logical buyer, but a deal would not be easy. Traditional media companies as well as Asian video game publishers-operators might also be interested, but we don't believe that these players are likely to even match EA's prior offer given that none would have synergies in the sports genre.

 

Comments

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

I'm all for freedom of ttnet vitamin speech and allowing rent a car game makers to put whatever they want in games, but there's one thing about this app that has me scratching my head.  Correct me if I'm wrong, but from araç kiralama the previous article araba kiralama on this I gathered that players can use Google maps in-game to find the other (real-life?) dealers in their area.  If this is the case, has travesti anyone considered what's stopping someone from using this app to actually move drugs between hands for reals?

But majority araba kiralama of their outrage araç kiralama stems from what it could DO TO children, not the content itself.  Talk to one of these people and you'll find they don't think any books kiralık araba should be banned from children.  Mention American Psycho and they talk about kiralık araç the redeeming value of using imagination to construct a story.  Reading, no matter what the content, is largely viewed as a consequenceless activity for people of any age.  The reason why I mention American Psycho is because of the content itself.  Gaming never has and likely never will have any scenes where someone has sex with a severed head.  Not gonna happen.  Yet despite this, they'll fight tooth and nail to protect their children from two boys kissing in Bully but whatever they read is harmless... yeah.

The entire arguement is kiralık oto based upon a social normality inflicted by luddites who can't figure out the controls for Halo so it's frightening and terrifying and obviously the cause of youth violence on the rise even though, in reality, it's in decline (which is actually a HUGE suprise given minibüs kiralama the economies status).  In  a perfect world, we would have parents that actually parent.  The idea of sales restrictions on media on oto kiralama any form to accomidate parental unwillingness to get involved with their child's life is the real problem to me.  Here I am, 32 years old, and being held up at a self-scan rent a car needing to show ID before I can buy a $10 M rated game all because Soccer Momthra can't be bothered to look at the crap Billy Genericallystupidson does in his free time.  It's too hard for her, so I have to suffer?

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

In relation to the economy, T2 actually increased value quiet a bit since last year, especially with the massive hit the stock market took today.

EA on the other hand has dropped 21% in value since last year.  All in all, EA is hurting, T2 is doing very well, because most companies have lost value since a year ago, they are part of a very slim few.

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

http://www.forbes.com/personaltech/2008/09/15/taketwo-ea-merger-tech-personal-cx_cm_0915taketwo.html

Above is a great article about how much trouble Take-Two is in.   I LOVE IT!  Jack Thompson 

 

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

I thought you'd be furious about this, Mr. Thompson. For one, you wanted EA to buy them. And secondly, their stock falling wasn't even your doing. I thought 'destroying' Take-Two was YOUR job?

David "DavCube" Gagnon, Sane Human Being, and You're Not.

PS: It's customary to sign one's name one line BELOW the end of one's letter, not just tacked on the end, 'Anonymous.'

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

I don't know what's worse, that what you said is in no way related to what's going on, or that you ironically managed to pull up a news article that repeats what this one said to explain your unrelated bile.

岩「…Ace beats Jack」

岩「…I can see why Hasselbeck's worried about fake guns killing fake people. afterall, she's a fake journalist on a fake news channel」

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

Schadenfreude does not behoove an adult of your profession.

Oh wait...

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

Doesn't necessarily mean anything. There's almost no such thing as 'stable' stocks.

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

MEh, if only I had the cash to get some stock i nthe company.

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

There are also reports that GTA4 is selling below TT's expectations.  But this isn't the best day for the stock market in general with the financial sector dragging the rest of the market down. 

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

yeah but the game sold WAY more than most titles out there and broke a few records even.

so how it couldn't be selling as expected is beyond me personally, other than the probability they set their expectations way to high.

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

How funny. GTA4 didn't even live up to expectations of it's publisher, let alone long-time series fans. Newsflash!

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

dunno why it'd fall now, this is the best news since... well since we realized bush would be outta office soon.

now i can be assured that i can buy GTA4 and other T2 games without crappy DRM that uses viruses, spyware, and limitations on how many times i can install my game.

 

i still can't believe EA's excuse for the limited installs is that a minority of users put it on multiple systems or install more than once. it leaves questions as to where they got those stats from, and if they ever bothered to realize that since the implementation of this new DRM their sales have dropped.

we aren't all on consoles with a 1 copy per system here EA, PC users can and will uninstall/reinstall, and put it on more than one system a lot more than you seem to think.

i can't think of a single person i know that hasn't done multiple installs be it reinstalls from upgrades or system failures to having multiple systems.

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

You just realized that Bush would be out of office soon?  Have you ever heard of the two-term limit for Presidents?  Put down the controller and study your civics book, junior. 

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

It's fallen because it was up that high primarily due to the potential merger. With that failed to due EAs refusal to go higher, and T2's refusal sell for what they considered too low, it's dropping back down to where it would be naturally.

-Gray17

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

i can see that, but considering EA's shady practises of late i don't see why people would "like" the idea of a merger with them.

EA's only high point is their crappy sports games where the AI does 2/3 of the work as the player watches.

but then again, its all done by buisness people, so to them a bigger company taking over the little one probably would look tasty despite the bigger companies inevitable demise at their own hands.

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

You have to remeber that these are people who only look at the money side of things, not the entertainment side. Merging two successful companies is an economic goldmine in the short run, and profits will be big until they collapse. Fighting the merger was considered stupid and caused a lot of money minded people to pull out. These stock people see these two companies as no different than any other pair of companies.

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

Of course, a lower price may lure in more investment in the long-run. If the company is successful the share price will theoretically rise.

 

Rejecting the merger at this point is good news for long term investors, as it makes the stock easier to acquire greater shares of. I would suspect the terms of Take 2's surrender to EA were unacceptable to Take 2, such as loss of creative control, which, as rumor has it, EA is notorious for stealing from companies. Doesn't mean EA won't try again in the future though.

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

this was expected, it will get back up to 18 before the end of the week is my bet, go buy some stock Kayle.  If it isnt up there by the end of the week, it will be before the end of the chirstmas season.

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

Now I must buy T2 stock.

Re: In Wake of EA Pullout, T2 Stock in Free-Fall

I wouldn't call it a freefall personally. It opened at 15.75 and has been slowly rising back up since.

Also:

At the same time, EA [ERTS] stock is up nearly a buck.

Um, EA's stock isn't up nearly a buck, it's down nearly a buck.

-Gray17

 
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