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

EA has shuttered Maxis (The Sims, SimCity). Should it keep the Maxis name alive?:

Shout box

You're not permitted to post shouts.
Andrew EisenPM - Yep, that's the one.03/06/2015 - 12:53am
TechnogeekBest case, it was some marketing douchebag who thought they could pander to both sides at once.03/06/2015 - 12:49am
TechnogeekAlso, this was the mistake tweet: http://i.imgur.com/4eLWNHx.jpg03/06/2015 - 12:48am
TechnogeekBecause nothing says "open, diverse gaming community" like buddying up with Breitbart.03/06/2015 - 12:47am
Papa MidnightAndrew Eisen, I believe this is the picture that you seek: http://i.imgur.com/Gdk60pa.jpg03/06/2015 - 12:30am
Papa MidnightSurely, Goth_Skunk, you say that in jest?03/06/2015 - 12:28am
prh99Craig R. Cause quite a few of them are not, they're bullies with different politics.03/06/2015 - 12:23am
MechaTama31What was the "mistake" tweet?03/06/2015 - 12:18am
MechaCrashWhatever you say, Goth.03/06/2015 - 12:02am
E. Zachary KnightGoth, they could have fooled me.03/05/2015 - 11:16pm
Goth_SkunkI don't understand. GamerGate supports an open, diverse gaming community for all as well. Google's statement is contradictory.03/05/2015 - 10:59pm
TechnogeekAnd as far as the Card thing went, I basically balanced it out personal guilt-wise by donating an amount equal to the Shadow Complex purchase price to the ACLU.03/05/2015 - 9:44pm
TechnogeekWelp, look like the Gerberghazi crowd is going to have to use Bing now. https://twitter.com/googlecloud/status/57365320825126093003/05/2015 - 9:42pm
Goth_SkunkAhh! I misinterpreted your statement about being left with almost every game in existence. I interpreted it as 'If you boycott games he's been involved with, you're boycotting almost all of them.'03/05/2015 - 9:31pm
Andrew EisenGoth - Card has been involved with only a small handful of games so if one were to boycott games for his involvement, they wouldn't be missing out on many games.03/05/2015 - 9:29pm
Goth_Skunk@Craig: Only if you're not interested in seeing it end.03/05/2015 - 9:27pm
Craig R.Instead of calling people the "anti gamergate faction", you could just call them "sane"03/05/2015 - 9:23pm
Goth_SkunkWhat do you mean 'almost every game in existence'? Card is a writer, not a game developer.03/05/2015 - 9:18pm
Andrew EisenBut I too wonder how many people who cry boycott actually follow through. I vaguely remember a few years ago a bunch of people boycotting one of the CoD games and were all found playing it on Steam.03/05/2015 - 7:53pm
Andrew EisenAn interesting quandary but not equivalent as boycotting games that Card was involved with leaves you with... well, almost every game in existence.03/05/2015 - 7:51pm
 

Be Heard - Contact Your Politician