Take-Two's Rejection A Big Mistake?
You may have read tiny dancer's lovely article yesterday discussing Take-Two putting the kibbosh on EA's lucrative offer. Take-Two's chairman, Strauss Zelnick, has been universally seen as both a shrewd negotiator and now, thanks to wonder-analyst Michael Pachter, a potential fool.
"We're frankly surprised by Take-Two's rejection of EA's offer. Although many of the points raised by Take-Two's board are entirely true, we are somewhat amused that they are raised as negotiating points. We think that the board has virtually no chance of finding a better offer. In our view, Take-Two's board has made a mistake. We believe that the company was positioned to extract a higher offer from EA by offering a friendly transaction, and its board chose to continue its adversarial posture. We think that Take Two's position that the company will have greater value after the release of Grand Theft Auto IV is naive at best, and disingenuous at worst. We think that the strategy adopted by Take Two's board was ill-advised." - Wedbush Morgan analyst Michael Pachter
Ill-advised?
Naive?
Ouch, those are some sharp words. As always, time will tell if Take-Two's decision to hold out past the $26.00 per share offer will pay off.
Pachter: Take-Two Has Made a Mistake [GameDaily]
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Posted to Miscellany on 27 March 2008
· Comments (2)
Other stuff like this: analyst, failure, Pachter, Take-Two, Zelnick
As long as it means I can buy GTAIV without EA getting a penny from it, it's a good thing.
Pft, this wasn't a mistake, if EA bought Take Two, they'd destroy GTA and well, 2k Sports would be no more.