Big Grand Theft Auto IV sales would boost Take-Two
Posted by: admin in Engagements and Deals NewsFiled 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 superior 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 superior 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 purchase Take-Two in the $26-$28 range,” the analyst writes.
Continue reading at TechConfidential.com.
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