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Take Two gets some bad analyst predictions

If you have ever meddled a bit with stock markets beyond the most basic levels, you know analysts can make or break a company. While the technical value of their claims is often doubtful at the very least, many investors blindly accept analyst predictions as being true. Reputed party Morgan Securities predicting more problems for troubled publisher Take Two can become a self-fulfilling prophecy easily perhaps.

2K Games LogoSkipping immediately to the most worrying prediction, analyst Michael Pachter suggests the company’s problems, resulting mainly from the well known Hot Coffee scandal and our big friend Jack’s crusade, could result in it being split into several separate divisions fit for purchase by other publishers. Of which the most worrying consequence could be that Electronic Arts would acquire either the entire company or just the 2K Sports division, resulting in a monopoly on everything sports for the publishing giant. Needless to say an EA monopoly on the popular sports genre would be the last thing we’d all want to happen, since healthy competition is what keeps innovation alive in a capitalist system.

The big question is whether Take Two’s main moneymaking franchise, Grand Theft Auto will perform well enough to compensate for losses and bad performance elsewhere in the company. As Pachter suggests, Take Two management should sacrifice some of the eternal freedom being given to their successful developers to avoid another Hot Coffee scandal taking its toll on the company’s coffers.

Thanks to nofear360 for spotting this over at our colleagues of Xbox 360 Fanboy.

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10 comments on 'Take Two gets some bad analyst predictions'

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Comment by Carabus on 2007-02-20 17:09:23 | Reply

Oh, that’s trouble.

Comment by freduk on 2007-02-20 17:14:45 | Reply

nooooooooooooooooooooooooooooooooooooooooooo not EA

Are you kidding me? GTA + Next Gen + (possible online games.) = $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Comment by worm man on 2007-02-20 17:33:28 | Reply

YOU KNOW THEY COULD MAKE MONEY BY BUYING OUT TEAM17 (PEOPLE WHO MAKE WORMS) AND MIXING WORMS WITH GTA = WINNER!
WE WANT WORMS WE WANT WORMS

Comment by Vegas Local on 2007-02-20 17:46:37 | Reply

Microsoft should by them and then GTA would be an exclusive and they would also have a sports line again. Probably won’t happen but we can dream can’t we.

Comment by mass9 on 2007-02-20 18:20:58 | Reply

you may be on to something here…..
the stock price tumbles, M$ offers a healthy premium on the units (more than EA/any other dev would realistically pay), the Take Two execs can then cash in their stock options, sail off into the sunset, and M$ will have a 1st party sports division.

Of course, M$ isn’t in the business of losing money. If Take Two isn’t profitable now, why can we assume they will be profitable under the M$ brand? hmmmm…..I love speculation on large company financial issues.

AND STOP TYPING IN FULL CAPS YOU DIP SHIT!

Comment by newmodel on 2007-02-20 18:57:35 | Reply

I think Take Two will do good this year. Everyone will be surprised when their new football game flies off the shelf this summer. Just as analysts freaked when Blitz sold so many copies in the fall. EA probably has these analysts in pocket. In order to finally and completely hold a monopoly, they are going to try and acquire their last competitors. I think its a little fishy how these rumors start surfacing just a few months before All-Pro Football 2K8 releases, especially given the relative calm we’ve had since they bought the NFL license. If EA succeeds in buying Take Two, it will be the dark ages of sports gaming for years to come.

Comment by x El Scorpio x on 2007-02-20 21:05:57 | Reply

Take Two is always surrounded by negativity…

Microsoft could certainly buy Take Two, that’s get loads and loads of exclusives for people to buy a 360 for, but that’d be very expensive for MS

Comment by Gazra on 2007-02-20 23:28:48 | Reply

Very expensive for MS..your kidding yourself.

Take Two’s estimated takeover value is $1 billion. That’s even much for MS :)

2K Sports could go for $200 mill theoretically, according to this very analyst.

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