Activision is currently rumored to be planning an attempt to purchase Take-Two Interactive soon.
Quote:
Benchmark analyst Mike Hickey discussed "an emerging romance" between the two companies, which have similar goals, in a research note Friday. Take-Two and Activision Blizzard (NASDAQ:ATVI) are interested in forming movie studios to make feature films based on their game franchises.
"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," Hickey said ...
Take-Two was last in play in 2008 when Electronic Arts (NASDAQ:EA) offered to buy it for $26 a share in a deal worth $2 billion. Take-Two rejected the deal, saying it undervalued the company. EA made its initial offer in February 2008 and discontinued its pursuit of Take-Two in September 2008.
"With the acquisition of Take-Two Interactive, Activision would have arguably the three strongest development studios in the world with Rockstar Games, Bungie and Blizzard," Hickey said.
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http://news.investors.com/technology...lk-by-atvi.htm
In terms of a potential offer, Activision has way more money in cash reserves alone than Take-Two has in total wealth. Could easily make a $2-3 billion offer and still have $1-2 billion left afterwards.