Video game maker Activision Inc. (NASDAQ: ATVI) on Monday said it has filed a definitive proxy statement relating to its proposed $9.8 billion merger with Vivendi Games Inc. A special meeting of Activision stockholders will be held on July 8 to approve the transaction.
Activision also has been mentioned as a possible buyer for rival game maker Take-Two Interactive (NASDAQ: TTWO), which is being pursued by Electronic Arts (NASDAQ: ERTS). Activision, of course, still has its hands full completing the Vivendi Games merger. But with Take-Two so far being able to drag out the process with Electronic Arts and the government not yet signing off on the regulatory aspects of the deal, there's little question an acquisition of Take-Two won't be completed by July 8.
In a research report put out on Monday, UBS analyst Benjamin Schachter discounts the possibility of Activision going after Take-Two. Schachter notes that despite "some interesting synergies between the companies," and the strength in Take-Two's franchises -- most notably "Grand Theft Auto" -- he's not sure Activision would have an interest in Take-Two's sports business, which has underperformed. Nor would Acitivision have much use for Take-Two's casual or distribution businesses, he argues, also pointing out that there remains some uncertainty about the contract of "GTA" developer RockStar, whose contract expires early next year.
