Shares of Take-Two Interactive (NASDAQ: TTWO) were trading modestly higher early Friday despite the company reporting stellar earnings for the second quarter, due largely to the success of its Grand Theft Auto video game. Trading at $27.74, the stock continues to hold above rival Electronic Arts (NASDAQ: ERTS) $25.74 a share, or $2 billion, offer price made in February.
Take-Two execs said Thursday the company continues to explore strategic alternatives and has held discussions with a number of interested parties. But most market analysts still expect EA to emerge the victor for Take-Two, though at a higher price than $27.74.
In a Friday research note, Citi analyst Brent Thill estimates there is a 60% chance EA will walk away with Take-Two for between $28 and $30 a share. He also says EA is likely waiting for federal antitrust approval of the deal before raising its bid "so as not to risk any deal structure changes due to an adverse [Hart Scott Rodino] ruling."
