Take-Two Interactive (TTWO) is best-known as the home of game designer Sam Houser and his “Grand Theft Auto” franchise, but execs there want you to understand that they’re not just a one-game business. Hence this morning’s article in the NY Post:
Video game maker Take-Two Interactive is likely to sign “BioShock” creator Ken Levine to a new contract, a key development that strengthens the company’s argument that it’s worth more than rival Electronic Arts’ $25.74 per share takeover offer.
Renegotiations between Take-Two and Levine are at a delicate stage, but sources close to the talks said the deal would give Levine more creative control over his projects as well as the ability to develop new franchises.
And indeed, BioShock has been a surprising success for TTWO, moving 2.2 million units since last fall. But arguing that investors are unaware of BioShock is like arguing that they didn’t realise that GTAIV was going to be a big game: It’s not true. What is true: Investors no longer seem to think that Electronic Arts (ERTS) is going to buy Take-Two for $25.74 or more, which is why shares have been trading below EA’s offer price for the past week or so.