Take Two Stock Falls After EA’s Withdrawal

Electronic Arts dropped their $2 billion bid for Take Two yesterday, causing the company’s stock to plummet abour $5 per share. Ubisoft is said to be a “possible buyer,” but it is unlikely that they would surpass, or even match, EA’s bid. Take Two can manage itself for now, considering that they “[have] one of the most successful proprietary game franchises in the industry, [are] profitable, [and have] no debt.”

In February 2009, Take Two’s three-year contract with Rockstar’s Sam and Dan Houser expires. If Rockstar goes independent, which they surely could, Take Two would lose an ace in the hole. Analyst Michael Pachter questions “whether Take-Two can retain [Rockstar], and if so, at what cost.” Seven months ago, gamers everywhere were scared that Grand Theft Auto would be under Electronic Art’s control, but now the wheels seem to be turning in the opposite direction.

Via Huron Daily Tribune

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