Skip to Content

AOL Games

Pachter: Take-Two's rejection of EA offer a mistake


Wedbush Morgan Securities analyst Michael Pachter jumped right on Take-Two's dismissal of EA's buyout offer and says it was "ill advised." GameDaily reprints Pachter's analysis in which he goes point by point over how, in his opinion, Take-Two's board screwed up. He believes the company was positioned to get even more money out of EA if it had offered a "friendly transaction" instead of continuing its "adversarial posture."

Pachter believes that if Take-Two is holding out for more money following the release of Grand Theft Auto IV, the tactic is "naive at best, and disingenuous at worst." He states that GTA IV's sales will not ultimately impact the value of the company and that EA's $26 per share offer was done even with GTA IV sales in mind. Pachter goes on to say that if EA doesn't get controlling interesting of Take-Two with its tender offer, it will withdraw the offer and Take-Two's stock will take a 20% hit. He surmises the drop will be even worse if the market doesn't presume EA to be taking a walk around the block before picking up Take-Two later.

Tags: ea, pachter, take-two, takeover, taketwo

Reader Comments (Page 1 of 2)

Joystiq Features





Featured Galleries

Matt Hazard: Blood Bath and Beyond (11/30/09)

Matt Hazard: Blood Bath and Beyond (11/30/09)

PlayStation Home Winter Wonderland (PS3)

PlayStation Home Winter Wonderland (PS3)

Transformers Avatar items

Transformers Avatar items

Uncharted 2: Battle of the Doughnuts

Uncharted 2: Battle of the Doughnuts

Shiren the Wanderer (Wii)

Shiren the Wanderer (Wii)

Resident Evil 5: Gold Edition

Resident Evil 5: Gold Edition

Star Wars: Trench Run (iPhone)

Star Wars: Trench Run (iPhone)

No More Heroes: Heroes' Paradise (PS3/Xbox 360)

No More Heroes: Heroes' Paradise (PS3/Xbox 360)

Phoenix Wright: Ace Attorney (WiiWare)

Phoenix Wright: Ace Attorney (WiiWare)

 


Team Joystiq

 
Chris Grant
Editor-in-Chief, Email
James Ransom-Wiley
Managing Editor, Email
Ludwig Kietzmann
Senior Editor, Email
Andrew Yoon
East Coast Editor, Email
Randy Nelson
West Coast Editor, Email
Justin McElroy
Reviews Editor, Email
Justin Glow
Developer, Email

Joystiq Podcast

New episodes every Friday! Now playing: Joystiq Podcast 115, for Friday, Oct., 30.



Archive | RSS | iTunes

Autoblog

Urlesque

Download Squad

Engadget

Massively

Asylum

WoW

Engadget HD

Big Download