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| MAY 8, 2008 |
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The video game publisher is sure to use the strong results, which topped even the most
bullish expectations, to strengthen its bargaining position in talks with rival Electronic Arts Inc,
which is trying to buy it for $2 billion, or $25.74 per share.
"When you're negotiating like this it's all about leverage," said Janco Partners analyst Mike
Hickey.
"Take-Two couldn't be in a better position. If EA wants to keep their bid at $25.74 and thinks
that's a fair price, they are going to have to walk away from this deal," Hickey said.
Take-Two has held off on engaging Electronic Arts until after the "GTA 4" launch, arguing the
returns from the game should be a factor in its value.
Take-Two said on Wednesday that "Grand Theft Auto 4" sold about 6 million copies in the
week after its April 29 launch, raking in more than $500 million.
Initial sales topped the $300 million for last year's "Halo 3" video game from Microsoft Corp
<MSFT.O> and were on par with Hollywood's biggest blockbuster film debut, "Pirates of the
Caribbean: At World's End," which raked in more than $500 million globally in its opening
weekend.
Unit sales were in line with analysts' expectations, but revenue beat even the highest
forecasts by about $100 million, reflecting strong demand in Europe, where the game costs
more, and high sales of pricier collector's editions.
Daniel Ernst, analyst with Hudson Square Research said the initial sales weren't as
important as long-term sales, which he forecast would be 13 million units by the end of the
year.
"If you were buying this company four years ago, you were really just buying GTA," said Ernst,
who has a $30 price target for Take-Two and sees room for EA to raise its bid. [read more]
bullish expectations, to strengthen its bargaining position in talks with rival Electronic Arts Inc,
which is trying to buy it for $2 billion, or $25.74 per share.
"When you're negotiating like this it's all about leverage," said Janco Partners analyst Mike
Hickey.
"Take-Two couldn't be in a better position. If EA wants to keep their bid at $25.74 and thinks
that's a fair price, they are going to have to walk away from this deal," Hickey said.
Take-Two has held off on engaging Electronic Arts until after the "GTA 4" launch, arguing the
returns from the game should be a factor in its value.
Take-Two said on Wednesday that "Grand Theft Auto 4" sold about 6 million copies in the
week after its April 29 launch, raking in more than $500 million.
Initial sales topped the $300 million for last year's "Halo 3" video game from Microsoft Corp
<MSFT.O> and were on par with Hollywood's biggest blockbuster film debut, "Pirates of the
Caribbean: At World's End," which raked in more than $500 million globally in its opening
weekend.
Unit sales were in line with analysts' expectations, but revenue beat even the highest
forecasts by about $100 million, reflecting strong demand in Europe, where the game costs
more, and high sales of pricier collector's editions.
Daniel Ernst, analyst with Hudson Square Research said the initial sales weren't as
important as long-term sales, which he forecast would be 13 million units by the end of the
year.
"If you were buying this company four years ago, you were really just buying GTA," said Ernst,
who has a $30 price target for Take-Two and sees room for EA to raise its bid. [read more]
NEW YORK (Reuters) - Take-Two Interactive
Software Inc scored over $500 million in global
sales of its criminal action game "Grand Theft
Auto 4" in its first week, making it one of the most
lucrative entertainment launches in history.
Software Inc scored over $500 million in global
sales of its criminal action game "Grand Theft
Auto 4" in its first week, making it one of the most
lucrative entertainment launches in history.
Niko, you just made history...
"Grand Theft Auto" sales top $500 mil in
1st week
"Grand Theft Auto" sales top $500 mil in
1st week