Analyst Michael Pachter believes EA will work out a friendly deal at a slight premium to their original offer for Take-Two. He doesn't think Take-Two has much leverage though.
With EA now allowing its own tender offer for Take-Two to expire, Wedbush Morgan analyst Michael Pachter commented that it's "somewhat surprising to us that EA agreed to change its offer from hostile to friendly. It appears that the company recognizes the benefits of a friendly deal (continuity of key employees, greater access to documents and records), and concluded that it was prudent to make the attempt. In spite of its prior acrimonious comments about EA's offer being 'inadequate' and 'opportunistic,' Take-Two management apparently recognized that the olive branch offered by EA gave it a last (and only) opportunity to affect the outcome."
Pachter believes that Take-Two's negotiating leverage has "deteriorated" with each passing press release; he added that Take-Two's latest statement that EA's offer is "inadequate" is "unnecessary and hostile" and he was surprised to see that word repeated today from Take-Two management.
So will EA eventually acquire Take-Two? Pachter thinks so. Here's how he believes it shakes out...