Take-Two management’s mantra for the past six months or so: “Just wait and see what happens when we roll out Grand Theft Auto IV.” Their line today: “Told you so!”
Take-Two’s (TTWO) Q2 crushed both the Street’s revenue estimates ($540 million vs. $500 million consensus) and EPS estimates ($1.52 vs. $1.13) and bumped up guidance for Q3 and FY08. The problem: TTWO shares, which have been steadily climbing in recent weeks, aren’t budging in the aftermarket.
Presumably this is because current TTWO investors don’t really care about the company’s actual prospects — they care about the takeout price that Electronic Arts (ERTS), or a bidder to be named later, will end up paying. But the arbs are going to have wait even longer to find out: Yesterday EA struck a deal with the FTC to hold off on any potential buyout until the Feds complete an antitrust probe.