Electronic Arts is currently waiting on the FTC to complete its investigation into their acquisition proposal for Take-Two, but it hasn’t stopped people from talking about the possible alternatives in the meantime. While Ubisoft’s name has popped up recently as a possible suitor, what about Activision?
UBS analyst Benjamin Schachter says it’s unlikely:
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 Activision 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.
The fact that nobody else has approached Take-Two regarding an acquisition at this point is another reason why analysts think EA is being careful about raising their $25.74 per share offer.
UBS Analyst: Activision Unlikely to Approach Take-Two - [Seeking Alpha]
Tags: activision, business, ea, GTA IV, Industry, rockstar games, take-two
