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Microsoft Making a Bid For Take-Two?

According to some in the investment/business analyst community, Microsoft is indeed going to make a bid for Take-Two.

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Dark vader3401d ago

I don't think its going to happen. This rumor has been shot down already. And Microsoft knows that EA is trying to acquire take two for the longest time now. By microsoft making a bid, they might run the risk of breaking up the good relationship that they have with EA.

dannyhinote_133401d ago

I don't think it has anything to do with their relationship with EA, more so it being that buying a company for 2.5 billion dollars, then slashing it's DS, PSP, PS3 and Wii divisions doesn't seem like the smartest idea.

Dark vader3401d ago

Well that can be said about any third party developers right? And i though microsoft was trying to buy epic, now its take two?

SixTwoTwo3401d ago (Edited 3401d ago )

Thats why it's extremely rare to see a console manufacturer buy out a 3rd party developer/publisher.

RememberThe3573401d ago

MS already publishes games. If they're seeking to expand their portfolio they'll most likely look into developers and publishers. $2.5 Billion is not worth what they'd get from T2, thats why the console manufactures don't buy up publishers. The value of T2 would be cut down severely by cutting out the PSP,PS3,Wii,DS profits.

Megatron083401d ago

@SixTwoTwo actually its not that rare. Sony went in a bought out tons or them when they entered the video game business. As sony fanboys like to point out that sony has a lot of 1st party devs. How you think they got so many of them ?

About the only way I see MS getting T2 is if they sell out to MS to avoid EA buying them out. They been trying to keep EA from buying them out for a while now. Maybe they are willing to work with MS and not EA but I kind of doubt it.

ruibing3401d ago

MS can't even handle its own internal development studios well, and now its going after a major 3rd party publisher? They should go after 2nd party developers instead.

Sitdown3401d ago

Are you sure part of it might not be about the relationship? Do you not remember how EA helped the Dreamcast's decline? Also, I remember hearing talk during the original xbox that EA had something to do with the closing of XSN....and their willingness to come under live.

cmrbe3401d ago

Sony from my recollection supports new and up coming devs and if they are sucesseful they buy them. Its not ideal to buy out an established multi-plat publisher as their value would diminish greatly if they are to publish for one platform only. The price is not worth it. Ever wonder why Sony never bought out Square?.

It is much cheaper and finacially sound to support up and coming unknow devs and then buy them out when they succeed and have them either as 1st or second parties.

However if this is ture then great for MS. They need 1st parties but i don't see how this would make any financial sense.

supahbad3401d ago

i just had an idea, what if this is the reason T2 didn't take EA's deal, they already had planswith MS

Bangladesh3400d ago (Edited 3400d ago )

I agree with most of you. I don't see MS buying T2. Just as Shane Kim stated the last time the rumor was brought up, "There are ALOT of things that you can do with $5B."

They stood by while EA gobbled up Bioware. Imo Bioware would have been a fantastic studio to add to MGS, and EA got them for 800 mil.

Lifendz3400d ago

MS needs to do something to bolster it's in-house studios and adding Take 2 (Rockstar specifically) would be huge. Imagine GTA, Midnight Club, Bully, etc only for MS consoles. Would suck for me as a PS3 only owner BUT it would provide the incentive to bring people such as myself who may want to play the aforementioned games to the 360 (or the next console).

This may be too big a fish to try to catch though. MS might want to pick up some smaller studios first. E for Effort here.

Statix3400d ago

If they have Take-Two, they don't NEED EA.

mikeslemonade3400d ago

I cannot wait for GTA4.5. GTA4 was a gimped game because it was on the 360. The 360 has proven it cannot handle big enviroments without popup. GTA will be another rehased and ruined series if it's exclusive for 360.

plenty a tool3400d ago (Edited 3400d ago )

microsoft would not want to alienate EA. and snapping up take-two would certainly do that. although ea pump alot of rubbish, that rubbish sells container loads. sony or microsoft could not survive without ea. if either of thos two bought take two, ea would with-hold franchises, and all other sorts of dirty stuff to fu*k them up.

mikeslemonad: lose a bubble for being a fanboy

Kill Crow3400d ago

Both systems suffered from popup on GTA4 ... your statement is a load of rubbish considering the PS3 version had much more negative press regarding freezing and bugs ...

PopEmUp3400d ago

If Sony getting into this bid business by bidding on Take-Two hmm. I wonder who will win, but I know M$ will always win in this one, just look at their trend, btw M$ have R&A (Research & Acquire) team whereas other company have R&D (research & Development) team

potenquatro3400d ago

agreed. MS couldn't even keep bungie completely happy, how the hell are they gonna keep T2 happy.

+ Show (14) more repliesLast reply 3400d ago
Arsenic133401d ago

If this happened. No PS3 GTAs or Bioshocks. That sucks. Just leave Take Two a third party developer with its own decisions. EA would ruin all games coming from T2 is they purchased it.

3400d ago
dktxx23401d ago

Not going to happen. Microsoft Game Studios couldn't afford another couple of billion dollars to add to their debt.

360 man3401d ago (Edited 3401d ago )

they made almost $18 billion profit last year

almost five times than what sony made which was almost $4 billion

microsoft profits
http://en.wikipedia.org/wik...

sony profits
http://en.wikipedia.org/wik...

OOG3401d ago

yea sorry they are not in debt....and the fact the have already released most of their developers last year means that they have more room to work with....but I doubt this will happen anyway.....but dont fool yourself this is MS were talking about no childs bank account

dktxx23401d ago

Microsoft could afford it easily. but that's not the question. Can Microsoft Game studios (a subsidiary) get Microsoft to sink another 2.5 billion dollars into a business that has yet to give them a profit?

Dark vader3401d ago

Dude shane kim shot down this rumor humself in 07. Read the article.

Take-Two. However, Shane Kim swatted down the rumor, with a fairly obvious reason why the acquisition would never happen

dktxx23401d ago

Go read about Corporations and Subsidiaries and say that again.

Real gamer 4 life3401d ago

He meant Microsoft game studio, Yes Microsoft game studio is in debt. They have not yet got out of the red.

Drekken3401d ago

ASSASSYN 36o,

You can not call someone stupid by saying: "your stupid". It just makes you look like the dumb one!

Rageanitus3401d ago

They make it seem like the company as a WHOLE will contribute to the xbox division.

Its like asking of the divisions of samsung to fund development into their yepp mp3 line.... "smart" eh

FantasyStar3400d ago

If you can provide the links that Wikipedia cites, then that's fine, but citing Wikipedia itself is NOT credible. Haven't you learned anything in college?

ZombieNinjaPanda3400d ago (Edited 3400d ago )

You do realize that you just posted up links to wikipedia right?

It may or may not be true, but you just gave an unreliable source.

[email protected]

I learned that in 7th grade ^^ And 8th..and 9th..And now 10th most likely..

Bangladesh3400d ago

Microsoft is turning a profit on the 360 and has been since the launch of Halo 3. 360 has been profitable for almost a year now.
http://arstechnica.com/news...
http://www.joystiq.com/2008...

+ Show (10) more repliesLast reply 3400d ago
360 man3401d ago

microsoft can definately buy them if they wanted.
but yeah it will hurt thier relationship with EA
but then again EA makes the most profit selling their products on xbox 360

ICUP3401d ago

Ea make more money on ps3 than any other consoles or hand held, check if u don't believe me.

360 man3400d ago

wow icup ur so mis-informed

thekingofMA3400d ago

haha icup so misinformed

but instead of us checking, how about you supply us with a link instead? humor me...

foodbox3400d ago

@ above.

360man doenst need to supply any evidence here. It is **very common** knowledge that the attach rate for Xbox 360 is higher. The install base is almost double (xbox 360 doubles PS3). Further, EA's sports games sell heavily in America/EU vs. The East; EA's profits are centered on these markets, and the Xbox 360 leads those markets even more.

This is all very commmonly accepted knowledge. Without a doubt.

For instance:

1 Madden NFL 08 Electronic Arts 6,779 7.27 2.32m
2 Madden NFL 08 Electronic Arts 4,317 6.66 0.86m

Thats about 3:1 Xbox 360 to PS3. EA's games are almost all like this. Dont forget, the cost of development is *greater* on the PS3 than Xbox 360, so you need more unit sales to achieve the "break-even".

I could go on and on and on. But, again, this is all common knowledge.

Now, if you have some kind of **EVIDENCE** that in some miracle manner, EA **ISNT** making most of its money on Xbox 360 vs. PS3, I think perhaps **YOU** should produce it.

thekingofMA3400d ago

i dont know why i got two disagrees for telling ICUP to supply some links for his completely untrue statement, but it is what it is i suppose

+ Show (2) more repliesLast reply 3400d ago
dachiefsman3401d ago

like the end of the article said, Shane kim already smashed this rumor a while back..

Superfragilistic3400d ago

It doesn't make strategic business sense. Many MS execs including Shane Kim have unconditionally outruled this and rightly called the 2.5bn price tag, as it did the Pandemic/Bioware $1bn sale to EA, overpriced.

If they didn't make an offer on Pandemic/Bioware, which in my opinion was a relative bargain full of talent and fresh IP tilted to PC & 360; then they're not going to go after Take 2 for almost three times the price (as a result of a bidding war) for one stand out developer with only two major IP's in GTA & Midnight Club; some critically praised but commercially narrow IPs from other studios such as 2K's Bioshock; and a company that's in deep financial woes beyond GTAIV.

IMO the Pandemic/Bioware buy was far more attractive, full of exciting new IPs and innovative franchises that had an overwhelming track record of financial and critical success, with a leaning towards the PC and 360 (Bioware) to boot, that could've been far better exploited.

It would have secured the premiere Western RPG house with Mass Effect, Jade Empire, Dragon Age, KOTOR 3 (MMO), Baldurs Gate, Neverwinter Nights IP & development teams; along with the rapidly rising Action-focused studio Pandemic with exciting franchises such as Mercenaries, Saboteur, SW Battlefront, Destroy All Humans (now THQ?), LotR: Conquest and Full Spectrum Warrior.

In short EA got the bargain of the century, compared to the overinflated Take 2 they're bidding for now. MS won't bite, unless they're trying to compensate for the missed Bioware/Pandemic opportunity that I've highlighted above. And frankly, it'd be far cheaper to poach the leading development talent and teams across the globe and form new MGS studios. Why not dangle the carrot of their own studio to the likes of Ken Levine rather than pay for the whole company?

My bet's on Ubisoft to come in and play White Knight by getting Take 2 at a lower cost and rescuing it from EA (who owns 33% of Ubi).