March 14th, 2008

EA bidding on Take-Two is all about Rockstar

Published at 7:13 PM PST

Electronic Arts (EA) CEO, John Riccitiello, has stated that Rockstar is the “primary interest” in EA's bid to acquire Take-Two. This clears the speculation of the bid being based around the 2K Sports label which produces very popular sporting games. However, Mr. Riccitiello stated that 2K Sports is the “secondary consideration” or secondary interest of the bid.

The situation has been very good for Take-Two's stock as an altercation of the bid, as you can see by the chart below it spiked around the time of the bid and has been on a steady rise since.

The question of whether this deal is right or not it still floating around and still unanswered, everyone has a different opinion and really the deal could go either way. The stock holders are obviously enlighten by the bid and seem to be for it at the moment, but will it be a good move?

Our opinion; If the deal goes ahead Rockstar should split into their own parent company, really they are already set to do that. With all their studios, it's like they a parent already, but the risks and extra work that would be involved may be the down-fall of that idea. At the end of the day I guess, ourselves, we'd rather see Take-Two stay the way it is, but the way people are talking it seems like that may not be the case.