Will GTA4 Raise EA’s Take-Two Bid?
As Take-Two Interactive’s Grand Theft Auto IV rakes in $500 million in its opening week, kicking Iron Man’s ass five times over, what will happen to Electronic Arts’ takeover bid?
Take-Two has said it won’t entertain any bidders until after the release of GTA4. EA previously offered $2 billion, at $25.74 per share. With the success of GTA4, Take-Two stock is up 29 cents at $26.35. It’ll probably get even higher as the game sells more units, with people telling their friends how awesome it is and inviting them to multiplayer mayhem sessions across Liberty City. Take-Two was smart to invest in excellent multiplayer modes — the resulting network effect will significantly increase sales. Note that the PC version isn’t even out yet.
Unlike Microsoft, Electronic Arts is not a universally hated company in its industry. Sure, they’re an acquisition monster, but they make damn good acquisitions and take care of them: from growing sports franchises to supporting Sims creator Will Wright’s ambitious Spore. Yahoo rejected Microsoft’s elevated takeover bid mostly on principle. Electronic Arts probably won’t face that moral hurdle.
Take-Two will probably try to get more money out of EA — lots more money. It’ll be Grand Theft EA. Unlike Yahoo with Microsoft, Take-Two will actually want to be bought by EA at a ridiculously high price. The question is, will EA bite?
Tags: EA, Gaming, GTA4, Take-TwoPOSTED IN: Gaming
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