Michael Pachter Says Take Two Can't Stop Takeover

[Andy Chalk]

Michael Pachter Says Take Two Can't Stop Takeover

Electronic Arts' [http://www.wedbush.com] recent buyout offer, the publisher lacks the resources to put up a determined fight against a hostile takeover attempt.

In an interview posted on MTV's Grand Theft Auto [http://multiplayerblog.mtv.com/2008/02/24/pachter-says-ea-purchase-of-take-two-inevitable/] and they don't when they don't make GTA."

"Their delusion that they will compete in sports - and the reason I say delusion is because EA's done everything they can to put the squeeze on them - ultimately I think Take Two would have to get out of that business. GTA is a great asset. Midnight Club [http://www.civilization.com/]. And the rest of the guys, who knows..."

Asked if there was any way for Take Two to block EA's move, he replied, "I don't really think so, unless Take Two shareholders think the stock is worth $40. But nobody is going to offer to buy it at $40." He also suggested that EA's offer was fair and would likely appeal to Take Two shareholders. "I think the vast majority of Take Two shareholders will jump at this," he said. "I don't see a white knight. I don't think Take Two will be able to do anything to block this."

One potential stumbling block from EA's perspective, according to Pachter, is Rockstar North [http://www.rockstargames.com]guys," he said. "They're not going to want the same deal as what they have now."


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[Arbre]

That's the game. The shareholders hold more than shares. Bye bye.

The more they grab, the more they can grab. When do we start to talk about abuse of position?

 

[Cousin_IT]

The wonders of the stockmarket :-(.

That said pachter has a point. Take 2 doesnt really have the portfolio of regular releases to compete against beamoths like EA in a shareholder market as fickle as Computer games. Most investors still probably have no long term intentions when it comes to investing in the industry, so most will no doubt jump at the chance to make more than they can expect to netime soon by accepting EA's bid. Maybe some will hold out on the principle that EA are an ebil homogenising monotonous blob, but I doubt it.

Whether Rockstar will follow T2 into EA though is another matter, I hope they dont; but then again if T2 goes who else will they have to turn to to support their future releases?

 

[hickwarrior]

Who is he referring to as 'they'? In the last sentence.

 

[elmaxx]

That's the way the economic world turns.

If Take 2 takes the offer, it'll go the same way as Westwood (command & conquer) and 2015, Inc. (medal of honor: allied assault, then became infinity ward). Which in my opinion is a sad reminder of what a publisher does when it gets into developing, and then just blatantly milks a franchise for everything it's worth.

Altho, that could be a good thing, sell the old company, jump the boat, take a break, get new ideas, make a new company, develop new games. BAM! ...stuff.