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Analyst: EA, Take-Two Overplayed Their Hands

Now that talks between Electronic Arts and Take-Two have concluded with no agreement, what now? Analysts had generally agreed that the proposal would turn out to be a huge value add for both companies and their investors -- so why couldn't they work it out?

The major dispute, both Cowen Group's Doug Creutz and Wedbush Morgan's Michael Pachter agree, is on the valuation of the company. Although Take-Two has had impressive financial results month after month since the release of Grand Theft Auto IV, giving board chairman Strauss Zelnick plenty of ammo to angle for a higher price, Wedbush Morgan analyst Michael Pachter has doubts about the sustainability of this performance.

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gamasutra.com
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