Pachter Chimes In On EA’s Move To Acquire Take-Two

by Mike Bendel February 24, 2008 @ 7:29 pm


Despite Take-Two’s recent decision to refuse a takeover bid in the amount of approx. $2 billion from industry giant Electronic Arts, Wedbush Morgan Securities analyst Michael Pachter believes it is inevitable that Take-Two will cave in to shareholder pressure and accept EA’s offer.

It’s quite similar with what Microsoft did with Yahoo… You go public when you want the court of public opinion to make a decision. I think EA is saying, “$25 was a fair offer. We’ll go to $26 but we’re not going any higher.” I think the vast majority of Take-Two shareholders will jump at this. I don’t see a white knight. I don’t think Take-Two will be able to do anything to block this.

If Take-Two takes the bait, Pachter is unsure if EA will be able to retain Rockstar, the development studio behind the widely successful Grand Theft Auto franchise.

“GTA is clearly a wonderful asset, worth a ton. The problem is that to make GTA the way it has in the past you need to engage the Rockstar North guys. They’re not going to want the same deal as what they have now,” said analyst Michael Pachter.

Pachter Says EA Purchase Of Take-Two Inevitable, Rockstar Not Necessarily Along For The Ride [MTV]

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