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‘Sony may or may not be in talks to take private Rockstar Games-owner Take-Two’
Posted on Thursday, 14 March 2019 11:27
Headlines have exploded with the recent rumour that Sony is in “advanced board level talks” to acquire Take-Two Interactive, the business behind Rockstar Games, according to recent media reports.
The majority cited a paragraph published by MarketWatch as saying Joel Kulina, head of technology and media trading at Wedbush Securities, commented there is potential takeover interest in the software developer.
Shares in Take-Two jumped 6.9 per cent to USD 96.03 at 06:30 in premarket trading today.
Metro, the Sun and Gamespot, among many others, have all picked up on the potential deal, with the former observing that it is not clear where the rumour was sourced but MarketWatch was first to report.
The original article suggested that Sony was discussing a “mostly cash deal” that could price shares at around “USD 130.00” each.
However, both of these statements have since been removed despite the story still referencing Kulina.
He has had to defend his statement on multiple occasions, one being with Gamespot where the Wedbush employee responded he has seen nothing behind this story so far and no one has found a source.
Kulina reportedly expressed his frustration that what he said has been misquoted and he has since been “bombarded with calls” regarding this matter.
That being said, if the rumour is true it could make the popular Grand Theft Auto game, made by Rockstar, potentially exclusive to Sony’s PlayStation console.
There have been several attempts to acquire Take-Two, which has a market worth of USD 10.87 billion, over the years, including EA exploring a purchase in 2008 that would have valued the group at USD 2.00 billion.
Headquartered in New York, the company develops and publishes products through its wholly-owned labels Rockstar Games and 2K for use on consoles, computers, smartphones and tablets.
In the nine months ended 31st December 2018, Take-Two posted net revenue of USD 2.13 billion, a 59.0 per cent increase on USD 1.34 billion in the corresponding period of 2017.
Net income rose significantly to USD 277.01 million in the opening three quarters of fiscal 2019, compared to USD 82.68 million in the same timeframe 12-months earlier.
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