When will EA get Take-Two? When all the hype dies down, according to UBS’ Ben Schachter. He says that EA (ERTS) should be able to buy the maker of GTA for $26-$28. That’s bit more than the $25.74 EA is currently offering — but possibly less than the $27 and change it’s trading at now.
The catch: The “timing may be protracted,” Schachter says — in part because he doesn’t think that EA and Take-Two (TTWO) management are really having meaningful discussions yet, contrary to other reports.
The conventional wisdom is that Take-Two’s recent run-up is due to the success of Grand Theft Auto, but that doesn’t make any sense to us: Almost all of the price spike occured after EA disclosed its bid, not after GTA IV went on sale. The only thing that’s going to push TTWO’s price up again is a bona-fide offer from another suitor. We’re all ears…
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