Take-Two Interactive’s (Nasdaq: TTWO) decision to rebuff last year’s $26 a share buyout offer from Electronic Arts (Nasdaq: ERTS) continues to look dumber and dumber.
Shares of Take-Two opened 31% lower this morning, after the renegade video game company delivered disappointing results and an even bleaker outlook.
Wait what? A video game company is considered “renegade” if they perform below expectations?
Pretty sure that’s just a reference to the GTA franchise and the somewhat unsavory reputation it has with the general public.
I’d rather they have a lower stock price than be bought and cut into pieces with the vast majority of people being laid off.
This. Wall Street can fuck off. If the stock drops a bit more in the coming weeks, it may be a great time to buy. The next GTA might even be halfway done by now since they don’t have to build a new engine.
Hah! Don’t count on it.
Um, why should investors care that random guy who doesn’t own the stock is okay with the price being lower?
It’s easy to say “I’d rather their price drop” when it’s no skin off your back. I’m sure the investors are less than enthused that the EA offer was declined.
I doubt the stock markets are much of a good long term predictive guide in the videogames buisness …or of anything really.
EA dropped 18% or so in the last month as well, what does it all mean!
Hmm. Wasn’t it trading this low back in 2006? Don’t the follow-up GTA releases always do better sales-wise?
A lower stock price makes them more likely to lay people off and even more vulnerable to a takeover.
Like everything, the games sell based on the strength of the previous title. So expect no one to buy the next GTA.
Maybe that’s what happened with the relative lack of sales success for Liberty City Episodes already. And now maybe people will see how much they improved with The Ballad of Gay Tony, and the next iteration will sell well again.
If I remember correctly they have used some questionable accounting in the past, is probably what that is referencing…here we go: CFO | News for CFOs and
PCWorld
True. But as someone above noted videogame stocks have never really been a good predictive guide. Even in EA’s heyday I remember their stock tumbling every day.
Did Blizzard ever IPO before being bought out? I’m curious.
Don’t forget Chinatown Wars. Didn’t that sell below expectations?
Just so we’re clear, those investors are joe six pack minimum wage or mr. richie caviar & champagne @ 11 near the playboy mansion pool party who funnels 20 million dollars onto different brokers to toy around and double his money?
I have no love or care for investors. They’re chasing after dollars.
It’s our job to make sure our interests are served. The investors and their brokers can take care of themselves, and you can be sure that they do, at any cost, fucking any corpses they can on the way.
Pretty sure Blizzard has always been owned by some other company.
Yeah, going back to 1994 when they were first acquired by Davidson & Associates. They shipped the first Warcraft shortly after.
What? It’ll sell millions of copies on release day.
Don’t mind BJB, he’s just jumping the snark.