Analyst Speculates On Possible Take-Two Buyout
Take-Two – owners of Rockstar Games and home to games like BioShock Infinite, has been an attractive buyout target for years. With the release and early success of L.A. Noire, one industry analyst says the company is ripe as ever for a buyout.
Sterne Agee analyst Arvind Bhatia classifies the chance that someone buys Take-Two as a "reasonable bet." Bhatia points to L.A. Noire and, of course, the upcoming Grand Theft Auto V – whenever it comes out – as strong indicators for the company's buyout. "Whether GTA V is released in late FY12 [fiscal year 2012 – ed.] or a few months later, i.e., in early FY13, should not materially change the company's intrinsic value. Besides, Take-Two investors know that the risk of game delays and the accompanying earnings volatility is inherent to their investment in this stock. What should be more important is that with the strong launch of L.A. Noire last week, Take-Two has created yet another valuable franchise."
Earlier this year, there were rumors that Activision was interested in buying Take-Two.