As they say, buy on the rumour, sell on the news. Take-Two Interactive’s (TTWO) Grand Theft Auto IV is being heralded by critics as “the best game of all time.” The game shattered first day sales records in the UK with 609K units (previous record was held by GTA: San Andreas). But despite impressive sales and reviews, TTWO is trading down 2% since the launch of GTA4 at $25.74, near Electronic Art’s (ERTS) offer price.
In any event, regardless of how well GTA4 does, Citi says that ERTS will likely acquire TTWO and that GTA 5 will be a “monster”:
We are upbeat on ERTS, ultimately we believe it acquires TTWO and with it comes the GTA IP and we believe Rockstar would sign-on (GTA 5 will be a monster hit given the expected console installed base 2+ years from now), in addition GTA will be a strong driver for console sales and with strong software tie ratios mark-share leaders like ERTS benefit…
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