Take-Two Interactive Software (NASDAQ:TTWO), publisher of the popular "Grand Theft Auto" video game series, is trading near a six-year high Friday on a report that Activision Blizzard might make an acquisition offer.
Benchmark analyst Mike Hickey discussed "an emerging romance" between the two companies, which have similar goals, in a research note Friday. Take-Two and Activision Blizzard (NASDAQ:ATVI) are interested in forming movie studios to make feature films based on their game franchises.
"For Activision, acquiring Take-Two Interactive would be a no-brainer, in our view, circling some of the strongest development talent and owned IP in the world, within a company that has nearly $1 billion in cash and trades at a comparably lower multiple," Hickey said.
Take-Two admires Activision's "deep connections to Hollywood" and its capabilities in making massively multiplayer online games, such as "World of Warcraft" and "Diablo."
Take-Two was up more than 4% in afternoon trading in the stock market today, near 23.50 It had reached as high as 23.66 intraday. Take-Two stock hit a six-year high of 23.67 on July 28. Activision stock was flat.
Take-Two was last in play in 2008 when Electronic Arts (NASDAQ:EA) offered to buy it for $26 a share in a deal worth $2 billion. Take-Two rejected the deal, saying it undervalued the company. EA made its initial offer in February 2008 and discontinued its pursuit of Take-Two in September 2008.
"With the acquisition of Take-Two Interactive, Activision would have arguably the three strongest development studios in the world with Rockstar Games, Bungie and Blizzard," Hickey said.
Take-Two's Rockstar Games is the studio behind the gritty crime saga "Grand Theft Auto."
http://news.investors.com/technology-click/082914-715340-ttwo-subject-of-takeover-talk-by-atvi.htm
Benchmark analyst Mike Hickey discussed "an emerging romance" between the two companies, which have similar goals, in a research note Friday. Take-Two and Activision Blizzard (NASDAQ:ATVI) are interested in forming movie studios to make feature films based on their game franchises.
"For Activision, acquiring Take-Two Interactive would be a no-brainer, in our view, circling some of the strongest development talent and owned IP in the world, within a company that has nearly $1 billion in cash and trades at a comparably lower multiple," Hickey said.
Take-Two admires Activision's "deep connections to Hollywood" and its capabilities in making massively multiplayer online games, such as "World of Warcraft" and "Diablo."
Take-Two was up more than 4% in afternoon trading in the stock market today, near 23.50 It had reached as high as 23.66 intraday. Take-Two stock hit a six-year high of 23.67 on July 28. Activision stock was flat.
Take-Two was last in play in 2008 when Electronic Arts (NASDAQ:EA) offered to buy it for $26 a share in a deal worth $2 billion. Take-Two rejected the deal, saying it undervalued the company. EA made its initial offer in February 2008 and discontinued its pursuit of Take-Two in September 2008.
"With the acquisition of Take-Two Interactive, Activision would have arguably the three strongest development studios in the world with Rockstar Games, Bungie and Blizzard," Hickey said.
Take-Two's Rockstar Games is the studio behind the gritty crime saga "Grand Theft Auto."
http://news.investors.com/technology-click/082914-715340-ttwo-subject-of-takeover-talk-by-atvi.htm
