video game maker Take-Two (TTWO) closed today at $26.26, down 9 cents from yesterday’s close of $26.35, despite news that “Grand Theft Auto IV” had sold an impressive 6 million copies for $500 million in its first week.
This puts a big kink in Take-Two Chairman Strauss Zelnick’s strategy, which was to sit back and watch the record sales numbers boost up the share price, so EA (ERTS) would have to substantially raise its bid.
The stock is still trading above $25.74, the current value of EA’s offer, so the company is going to have to find a couple of dollars to add to the bid.
But that’s a far cry from the significant undervaluation that Strauss had been talking about. How long will it be until EA makes its move?