Wedbush Morgan analyst Michael Pachter warns that EA will get hostile if Take Two resists takeover moves
In the wake of EA’s shock announcement of its move to acquire Rockstar owner Take Two, Wedbush Morgan Analyst Michael Pachter has stated that, in his opinion, the deal is now inevitable.
“We think that EA has two choices – beat ‘em or join ‘em,” he said. “They are attempting to offer a conciliatory gesture first, preferring to avoid the pain of a price war in sports without at least trying to acquire Take Two. Should shareholders reject EA’s offer, we expect the offer to be withdrawn, and expect to see EA compete aggressively and attempt to limit Take Two’s profit potential from its sports business.
“Next, we think that EA will ultimately seek to disrupt continuity of the Grand Theft Auto franchise by attempting to engage the Housers and key Rockstar personnel upon the expiration of their contracts in February 2009.
“Should EA not complete an acquisition in time to eliminate duplication and competition in its sports business, its next best alternative is to try to ‘hire’ key Rockstar personnel and engage them in creating an open world, mature-themed game to compete directly with Grand Theft Auto.”
To read Pachter’s report in full, click here.
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Comments
V.good
Interesting piece. wasn't this guy named the most accurate analyst in that Kotaku piece recently?
Re: V.good
This is this guys job, to analyse and predict, so people can make 'mucho dinero'.
Re: V.good
We need variety in games ! The acquisition will only kill competition, creativity and a death toll to variety !
Sim City...Dead GTA Dead if EA Win
I think people have to live the dream of making games ppl want. Not sell to the share holders. GTA would never be the same game with EA running the show. Same as all the other game that get the hands on.
We dont like the nicking cars and burning ppl,. Lets change it to borrowing the cars and buying ppls dreams! Make it a PG not an 18 it will sell more that way LOL
Re: Sim City...Dead GTA Dead if EA Win
Trying to buy them just before GTA IV release is a good joke.
Re: Sim City...Dead GTA Dead if EA Win
@4
That's simply not the case, is it? GTA is a winning formula. EA would have to be mad to alter it, and despite all the prejudice here, you must acknowledge that they know how to make games that sell.
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