Posts with tag GrandTheftAutoIv
Posted Apr 15th 2008 3:00PM by Tech Confidential
Filed under: Deals
Take-Two Interactive (NASDAQ: TTWO) has insisted it would not negotiate a possible acquisition of the video game company with Electronic Arts (NASDAQ: ERTS) or anyone else until after release of its blockbuster Grand Theft Auto IV title on April 29. No wonder.
In a research note, UBS analyst Benjamin Schachter on Monday says that pre-release reviews of the game are "overwhelmingly positive," with one reviewer describing it as "even better than the hype suggests." If GTA IV is as good as expected, Schachter estimates that it could sell six million-plus units in the U.S. in 2008, which would amount to $360 million in retail sales, and seven million to eight million units in the U.S. if the reviews are stellar, or $420 million to $480 million in retail dollars.
Yet while the presumed success of GTA will help Take Two in negotiating a better deal with EA, which has made a tender offer to acquire the company for $26, or $1.9 billion, "at the end of the day we continue to believe that Electronic Arts will be able to buy Take-Two in the $26-$28 range," the analyst writes.
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