News Post

It seems at least one Analyst feels a $20-$22 bid to takeover Take Two would be sufficient and would result in the company accepting that bid -- at least if the report by MCV -- the outlet responsible for the rumor in the first place -- is accurate.

"Analyst says $20-$22 per share bid would be sufficient; Says interest might spark rival bid from EA.

One US analyst has predicted that publisher Take-Two would accept a takeover bid of around $20-$22 per share from rival company Activision."

It's interesting MCV's analyst reports Take Two would accept this bid when they turned down a bid rumored at around $25 in 2008. However, that price was also in the inflated stock market of 2008, where a lot of irrational exuberance and inflated stock prices was the story of the day. Today those same conditions are around almost everywhere except video game stocks, which are still quite suppressed.

And let's be honest, the second line of the opening paragraph of the MCV news story is the more important one -- to say EA would allow Activision to acquire Take Two without any counter-offer is probably naive at best. This is all assuming that MCV isn't just circulating rumors in order to get a jump on a story that just might not happen.

Bottom Line: These two companies are certainly talking -- where there is smoke there is fire. But beyond the problem of a price, which is going to be a big sticking point, there is the problem of culture conflicts between both companies in many ways. As far as what this might mean for the 2K Sports brand, I'll get to that on my blog soon enough!

Member Comments
# 1 VoltronViking @ 02/14/11 03:27 PM
I wonder if Activision would be more agressive in aquiring NFL license and reboot the college hoops series...If so, go ACTIVISION GO!!!
# 2 Mintsa @ 02/14/11 03:30 PM
"Says interest might spark rival bid from EA."

That line is BAD NEWS..........if EA counters with a better offer..........goodbye NBA 2k.
# 3 kennyacid @ 02/14/11 03:34 PM
yup and all ill be left with for sports is MLB The Show because they lazy with Madden , dont know about Elite, dont play hockey, soccer or golf smh
# 4 The GIGGAS @ 02/14/11 03:35 PM
Originally Posted by Mintsa
"Says interest might spark rival bid from EA."

That line is BAD NEWS..........if EA counters with a better offer..........goodbye NBA 2k.
Who says Activision wouldn't continue bidding? Who says Take Two wants to be acquired by EA? We're all making giant assumptions in this case, methinks.
# 5 videlsports @ 02/14/11 04:16 PM
I wish Warner Brothers would grab take two entertainment.. they would have some more room to grow than with Activision, but it still would be better than EA..
# 6 USF11 @ 02/14/11 05:04 PM
I just did a thesis for my Masters in Financial Analysis on T2. There is not a chance in hell they sell it, During a Non-GTA period in the business cycle.

They finally cleaned up their act and got rid of a ton of dead weight. 15-20% growth over the next 5 years is not out of the realm of possibility.
# 7 cajunspice @ 02/14/11 05:37 PM
Hmmm. Hope this happens, but then again, I kinda don't. This acquisition MAY ignite some more football-related competition between EA sports and 2K sports which would be great! Although, I feel like Activision is the wrong company to be doing this just because they are in it just for the money for the most part. In the end, T2 should be bigger and needs to get bigger, and Activision will do this, but I'd rather Sony take over instead because we all know that they make WAY better sports games
# 8 GiantBlue76 @ 02/14/11 05:53 PM
Seems likely Take 2 would stick where they are. RDR and GTA have brought them back into the fold along with some needed cuts. The quality and innovation in their sports games outshines EA greatly in basketball and football. If they are able to aquire the license to the NFL that would REALLY put a damper on EA.
# 9 videlsports @ 02/14/11 10:58 PM
@ first I was disagreeing with this for take two, but now just go ahead and sell to activision, they will compete with EA with the Finacial Backing. ANd if they get college Football and Basketball.. they will have alot of fight left. But going as is.. don't know how long they can hold out without a football game.(take Two)
# 10 Golds @ 02/15/11 08:05 AM
Why hasn't a first party company (Sony) taken a step towards acquiring Take2 and merging it with the SCEA sports division? It's not like Sony doesn't have the money, and it would be HUGE to have take2's resources to create exclusive sports games. Imagine if Sony introduced an exclusive line up of The Show, NHL 2K, NBA 2K, NCAA 2K, and the exclusives of FPS and other action games Take2 has potential for? Sony would see a drastic increase in loyal customers and a significant increase in new customers who would come from other companies (microsoft/nintendo).
# 11 DarkOmnios @ 02/15/11 08:19 AM
To see a new NFL game exclusive like the show ???

No thank you...
# 12 videlsports @ 02/15/11 08:28 AM
I don't know what to think @ this point.. Maybe sombody needs to take over, because TT moves @ a snails pace when it comes to getting things done.
# 13 Goffs @ 02/15/11 08:31 AM
better them than EA....
# 14 luv_mist @ 02/15/11 10:02 PM
Bizarre Creations Closing Shop

Bizarre was purchased by Activision not too long ago and now they are closing shop. Activision is what EA was not too long ago. They are on top with a solid game that keeps the money rolling in so they are heartless when it comes to patience and cultivating. In all honesty with the way they have been shutting down studios for useless reasons, I'd want them to stand clear of anything T2 or Rockstar. I honestly wouldn't mind having EA scoop up T2 because we all know they would be shoving that ELITE title down the chute. On another note, it would be awful for Sony to pick up T2 because the sports titles would shrink. Plus 2K makes more multiplatform as opposed as exclusively which is a big reason why Bungie jumped off the M$ bandwagon.

I say T2 needs to continue to build great new IP. I think they also need to dabble more in DLC to bring in more money with the IP they have already. Honestly, they seem to be in a great position in my opinion. Stock market is not a litmus for how good a company is in terms of quality. They can get the sales without a doubt. Just need to keep working hard on their weak points. I honestly like the thought of them being acquired by Disney if that's an option. Highly unlikely, but that's hoping.......

On a side note about EA: They are starting to honestly open up their doors to creativity. I give them credit for that. We'll see how well the Ex-Infinity guys do with their new IP and how well Bioware is a few years down the line. EA is posed to make a big jump.
# 15 Tyrant8RDFL @ 02/19/11 03:02 PM
I have not taken the time to research this, but which company has more value? EA or Activision?

Just from what Activision has done with the COD series alone. I know they have tons of money, and maybe this is one of the reasons that the NFL gave EA just a 1 year extension.

Activision may be able to out bid EA for the NFL license. This can be very interesting.

My only thing is I hope the NFL gets smart and charges both of the companies for the license. Lets say its 500 million. Charge then both 275 a piece.

Now we have competition for the better NFL title, and the NFL made a extra 50 million for charging two companies to use the license.

Everyone wins, especially us by having a choice again, and being able to purchase both titles if we like

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