According to Benchmark analyst Mike Hickey, Activision Blizzard might be looking to acquire Take-Two Interactive Software, the publishers of the hit game Grand Theft Auto V.
Hickey mentioned that “an emerging romance” has started between the two companies, prompting Take-Two stock prices to reach a six-year high.
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.
The acquisition would put Activision in charge of three major game development studios: Blizzard, Rockstar, and Bungie, although Bungie is not officially owned by Acitivision. Instead, the development studio has a ten-year deal with the game publisher that is set to expire in 2020.
There have not been any official announcements made from either company regarding this potential deal, but hopefully more news will surface in the near future.
What do you think of Activision possibly acquiring Take-Two? Do you think it could benefit gamers, or would it harm upcoming Take-Two games?
[Source: IBD]
