Take Two shares jump on buyout talk

It may all be just rumour for now, but belief from investors that a possible deal between Activision and Take-Two could be on the cards saw shares in the Rockstar owner climb five per cent on Friday.

That was the day on which MCV broke news about the proposed takeover.

Throughout the course of the day Take-Two’s share price climbed from $15.07 per share to $15.82. That gives Take-Two a market cap of $1.353bn.

Though Activision’s share price climbed from $10.61 per share to $10.94 per share in the immediate aftermath of the news, it finished Friday only slightly up at $10.78 per share.

Investors speculated over the weekend that the Take-Two board would likely agree to a takeover offer of between $20 and $22 per share – a price that would represent a notable profit over the current market value.

However, such an offer would be somewhat below the $26 per share offer made – and rejected – by EA in 2008.

However, investors now say that Take-Two "looked like fools for saying no to EA’s bid last time" and are likely to be more receptive this time out.

About MCV Staff

Check Also

N64 and Mega Drive games are coming to a new Nintendo Switch online ‘expansion pack.’

The new tier, exhaustingly titled Nintendo Switch Online + Expansion Pack, was announced during last night's Nintendo Direct, and will feature N64 and Mega Drive games as part of the subscription service.