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Sony definitely not buying Take Two

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Earlier today, the gaming world reacted with shock to word that Sony was on the verge of closing a deal to acquire Take-Two Interactive, possibly giving the PlayStation platform first-party exclusivity on key franchises like Grand Theft Auto, Red Dead Redemption, and NBA 2K, among others.

 

Take-Two responded to a GamesIndustry.bizinquiry saying, "As a practice, we do not comment on rumors or speculation." As of this writing, Sony has not yet responded to a request for comment.

The news stemmed from a MarketWatch report on the US stock market headlined by concerns over Brexit and the impact various countries grounding the 737 Max 8 aircraft would have on manufacturer Boeing. Toward the bottom of the round-up in a list of stocks drawing particular attention was this note about Take-Two Interactive:

 

"Take-Two Interactive Software stock climbed 4.7% on rumors that Sony Corp. 'is in advanced board level discussions to acquire Take-Two Interactive in a mostly cash deal,' that would value the company at $130 share, according to Joel Kulina, head of technology and media trading at Wedbush Securities."

 

When we reached out for details, Kulina said he was confused at the sudden attention.

 

"This is purely unconfirmed market speculation that is making the rounds," he said. "I am not the source of this story in any regard. And not sure who quoted me as I didn't speak with anyone over the phone (unless someone saw a trading note that I wrote)."

 

Kulina did release a note today that included the bit MarketWatch quoted under a heading specifying, "TTWO M&A CHATTER MAKING ROUNDS...+2.5% - NO SOURCE **UNCONFIRMED**"

The writers of the MarketWatch piece, Sue Chang and Chris Matthews, in turn confirmed for us that Kulina's note was the only place they had heard that rumor.

 

"The stock shot up at the start of trade today to lead the S&P 500 and I was simply looking for plausible explanations," Matthews said. "Joel's in a good position to know what's moving individual tech stocks, even if they are just rumors. In terms of timing, [Take-Two] stock was well up before his email went out, so it was not his dissemination of the rumor that sparked the move."

 

This is not to say that Sony is definitively not buying Take-Two Interactive for $130 per share, but it is perhaps to point out that the stories currently making the rounds aren't stemming from any individual actually asserting them as true. Instead, they are simply accounts of people passing along what they have heard, with no way to determine the credibility of the original claims, that such talks are in place, what level they would be taking place on, how much the offer would be per share, or how such information would have leaked.

 

https://www.gamesindustry.biz/articles/2019-03-13-about-those-rumors-sony-is-buying-take-two

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3 minutes ago, Stanley said:

That wouldn't make any financial sense.

 

What if Take Two feel they've done all they can and want to make some money and retire? 

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1 minute ago, Barnard said:

 

What if Take Two feel they've done all they can and want to make some money and retire? 

I meant more for Sony.

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2 minutes ago, Stanley said:

I meant more for Sony.

 

Shshhh, don't tell Sony. The take two staff deserve their early retirement. :P

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Makes some sort of sense maybe. What with everything moving towards a more software/cloud/streaming like future and perhaps other competitors being a bit more equipped for that than Sony (well, beside Nintendo, but they always forge their own path anyway with regards to platforms and their massive Software/IP catalogue) somewhere along the line if Sony want to keep being a platform holder they need more big shit to keep selling hardware.

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If my maths is correct, this would value Take 2 at around 13bn dollars and the whole of Sony is valued at 58bn dollars. 

 

I guess it is possible. Not sure of the logic of spending circa 23% of your own value on purchasing a company which already releases all its games on your platform anyway. Although Take 2 do generate a lot of money so it might not be a bad long term deal. Risky though. 

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54 minutes ago, SuperBrother said:

If true MS would be (even more) fucked.

 

In what world is MS even fucked in the slightest bit? They're making about $2 Billion every 3 months in just the gaming division. The whole software division is about $10 billion every 3 months. It's all on a rise of about 8-10% a quarter. The market is massive enough for more than just one company.

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Just now, deKay said:

I heard Nintendo were going to buy Disney.

 

My friend said his Uncle hadn't told anyone else! How did you get that info?

 

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1 hour ago, Unofficial Who said:

More likely for Take 2 to buy Sony’s gaming arm surely.

 

I don't see this happen, but Sony's gaming arm makes ridiculous amounts of money at the moment. Almost as much as MS's gaming division and Nintendo combined.

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7 hours ago, Mr Tony said:

 

In what world is MS even fucked in the slightest bit? They're making about $2 Billion every 3 months in just the gaming division. The whole software division is about $10 billion every 3 months. It's all on a rise of about 8-10% a quarter. The market is massive enough for more than just one company.

 

They're utterly reliant upon third party cross platform games, taking several top selling ones away would be damaging.

Not that this will actually happen of course.

 

 

 

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3 hours ago, SuperBrother said:

 

They're utterly reliant upon third party cross platform games, taking several top selling ones away would be damaging.

Not that this will actually happen of course.

 

 

 

 

You could say the same for any system really. Microsoft have what, 10-15 studios that they now own, all developing stuff to be out in the next couple of years. They cross publish onto other platforms too.

 

Microsoft don't really care what you are playing, if it is one of their games or not. As long as you are using their services (Xbox Live, Game Pass, Azure etc). Those services are spreading further and further, you're seeing more games include those services going on different platforms.

 

Give it 24 months and you'll be able to play Xbox Live & Game Pass games on your phone, Tablet, PC, Xbox, possibly Switch.

 

I totally disagree that Microsoft are fucked or 100% reliant on 3rd party players.

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Hard to see how Sony buying Take Two wouldn't end up as being bad/more expensive for enthusiasts like your average Rllmuk forumite. Microsoft would almost certainly respond (Sega, Square?) and you'd imagine Goolge and Amazon would make moves to bolster their streaming services. Could end up needing two consoles, a PC and subscriptions to at least three services. 

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3 minutes ago, Stanley said:

How much would Take Two cost these days anyway, $8-10 billion?

 

It was worth US$10.9 billion at the market close of US$96 per share. At the mooted US$130 per share price, you're looking at around US$14.8 billion.

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24 minutes ago, Cyhwuhx said:

 

For what it's worth.

 

Indeed don't think it would happen but....it would be an interesting move - although as mentioned can Sony afford it? Would it give them enough leverage over their rivals?

 

Take Two are mainly hugely profitable I'm guessing due to the fact they release games on multi-platforms. If it was restricted to a Sony console not sure it would give Sony the return on investment they expect.

 

I could, though, see MS doing this... :) 

 

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7 hours ago, SuperBrother said:

 

They're utterly reliant upon third party cross platform games, taking several top selling ones away would be damaging.

Not that this will actually happen of course.

 

 

 

 

Not utterly. But I think MS are going for the platform approach now. XBox being it. So like mentioned the XBox platform will end up everywhere IMHO.... Which personally I find quite appealing. Already enjoying the X-platforming content on the PC.

 

 

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