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Analyst Doug Creutz: EA still best partner for Take-Two Interactive |
Listed in: PS3, Wii, PSP, Xbox 360, Nintendo DS, PC Gaming Tags: Activision, Electronic Arts, Take-Two Interactive, Ubisoft
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Cowan group analyst Doug Creutz has been keeping a close eye on the Take-Two Interactive buyout issue and has considered several options for the company's best bet to survive the inevitable merger.Creutz expressed his opinion that Electronic Arts would still make the best partner for the Grand Theft Auto creators. It's most likely that EA will bump up its US$ 26 per share bid to around US$ 30 to US$ 32 before Take-Two inally caves in.
He explained that while other companies like Activision and Ubisoft have the potential to offer a competitive bid against EA, both companies currently have their own hands full focusing on other areas in internal management.
Here's a bullet point summary of Creutz's reasons for why an EA and Take-Two fusion would be for everyone's best interest:
- With the recent consolidation in the video game space, Take-Two does not have a lot of other employer choices.
- EA can certainly afford to pay Take-Two.
- EA has moved to a more decentralized management approach to its developers, which we think Take-Two would be comfortable with.
- Rockstar would benefit from working within EA's infrastructure and distribution network.
- Since Take-Two's compensation is highly tied to the performance of its games, they have an enormous incentive to remain associated with Grand Theft Auto, one of the top-selling video game franchises in history.
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