GamesIndustry International talks to two financial analysts who closely watch the video games industry sector about what they make of rumors that Activision could possibly acquire Take-Two. This rumor began circulating over the weekend after Mike Hickey, an equity researcher for the Benchmark Company, sent a note to investors on Friday claiming that the two companies were engaged in what he categorized an "emerging romance."
"For Activision, acquiring Take-Two Interactive would be a no-brainer, in our view, circling some of the strongest development talent and owned IP in the world, within a company that has nearly $1 billion in cash and trades at a comparably lower multiple," Hickey's report reads. "With the acquisition of Take-Two Interactive, Activision would have arguably the three strongest development studios in the world with Rockstar Games, Bungie and Blizzard."
Other analysts, like Piers Harding-Rolls, Director and Head of Games at firm IHS see this deal as highly unlikely:
"I would file this rumor under unlikely at this point," Harding-Rolls told GII. "Activision's MO is relatively anti-risk and it has a calculated long-term growth strategy based on establishing and developing billion dollar franchises that unlock large amounts of value for the company. Activision is well placed to deliver that once again following the Skylanders success with Destiny and I don't believe acquiring Take Two and its stable of IP fits with this strategy."
GII has more comments from both analysts here.
This is not the first time that a rumor was floated that Activision or other suitors were interested in buying Take-Two, but there's no indication that Take-Two wants or needs to be acquired by someone else at this point…
Even though this rumor is highly unlikely, we will continue to monitor the chatter on this alleged courtship between Take-Two and Activision as information becomes public.