Ever since Electronic Arts disclosed its bid for Take-Two Interactive, Take-Two’s strategy has pretty much revolved around one hope: That when the company releases its Grand Theft Auto IV game at the end of this month, sales will be so huge that the market will bid up Take-Two shares.
But this has never made sense to us: Everyone knows that GTA IV is going to be the biggest game of the year. So how do you exceed those expectations?
Benjamin Schachter of UBS agrees. He predicts that the game may sell 6 million units in the U.S. this year, and that it won’t help: “While the assumed success of GTA helps TTWO’s negotiating position, at the end of the day, we continue to believe that ERTS will be able to buy TTWO in the $26-$28 range.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.