TakeTwo Shares Rise on Report Viacom Makes Offer (Update2)
Take-Two Shares Rise on Report Viacom Makes Offer (Update2)
By Andy Fixmer and Don Jeffrey
Feb. 7 (Bloomberg) — Take-Two Interactive Software Inc.,
producer of the “Grand Theft Auto;; video games, rose on
speculation that Viacom Inc. offered to buy the company.
Take-Two is rising because of a report today by Mcvuk.com,
a video-game trade publication, Wedbush Morgan Securities
analyst Michael Pachter said in an interview. He said he doesn;t
think the speculation is true.
“The likelihood of Viacom stepping up and making an offer
for a company with new management that hasn;t had a profit in a
couple years and that has a turnaround in progress makes it
pretty unlikely,;; said Pachter, in Los Angeles, who recommends
selling New York-based Take-Two shares.
Viacom, doesn;t comment on rumors, spokeswoman Kelly
McAndrew said in an interview. Ed Nebb, a spokesman for Take-
Two, declined to comment.
Take-Two rose 40 cents, or 2.6 percent, to $16 at 4 p.m.
New York time in Nasdaq Stock Market trading. The shares have
fallen 11 percent in the past 12 months. Class B shares of
Viacom, the New York-based media company controlled by Sumner
Redstone, rose 5 cents to $39.12 in New York Stock Exchange
composite trading.
Viacom bought Harmonix Inc., the developer of “Guitar
Hero;; and “Rock Band,;; in October 2006 for $175 million.
Redstone controls Chicago video game publisher Midway Games Inc.
Shari Redstone, Sumner;s daughter, is chairman of the company.
The report posted on U.K.-based Mcvuk.com said Viacom,
whose MTV Networks produces the “Rock Band;; video game, had
bid $1.5 billion for Take-Two. That would imply a 29 percent
premium over Take-Two;s market capitalization yesterday of $1.16
billion.
Viacom is more interested in building its own businesses
than making large acquisitions, Chief Executive Officer Philippe
Dauman said at an investor conference in December.
Take-Two announced last month that the latest version of
“Grand Theft Auto;; will be released April 29. The company has
been without a hit since it delayed the introduction of that
game last October. It hasn;t reported a profit since 2005.
To contact the reporter on this story:
Andy Fixmer in Los Angeles at
