Take Two downgraded. EA seeks 2K sports?
Michael Pachter of Wedbush Morgan Securities recently downgraded his assessment of Take Two Interactive stock from "hold" to "sell." While Grand Theft Auto IV is a guaranteed smash, WMS is wary of the lackluster performance of 2K Sports and "everything else." Naturally, Take Two's recent "hot coffee" scandal add to the decision, which Pachter chalks up to management decisions. Essentially, Take Two allows great freedoms to its creators, which results in groundbreaking games like GTA, but also results in sexual content making it onto a retail disc.
Pachter discussed the possibility of the company being bought, divided, and sold in pieces. It's "unlikely" according to Pachter, but he does note that EA would be the most likely candidate to purchase 2K, as it would give the company a monopoly on nearly all major sports products. Pachter said such a monopoly could be worth as much as $1 billion, though he believes 2K Sports itself could probably be had for $200 million.
[Thanks, dpcough]
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