Janco Partners analyst Mike Hickey believes that Take-Two's recently appointed management could be grooming the firm for sale within the next year, as he effectively upgraded shares to a "buy" rating. Could Viacom or Electronic Arts be potential suitors?
With Take-Two focusing on its core competencies and stripping away non-core businesses, Hickey thinks the New York-based publisher would become more suited for acquisition by larger firms.
"A narrow portfolio of strong franchises, owned IP, and world renowned development team notorious for owned IP creation, could be an exceedingly powerful asset for a competitive 3rd party developer like Electronic Arts or a large multi-media company like Viacom," he said in an investor note.
A sale of Take-Two could happen within 12 months, according to Hickey.