Analyst: Take Two-Rockstar Deals Make Publisher Attractive for Take Over

Video game publisher Take Two has announced that it has extended the contract agreements it has with key personal from Rockstar Games that are implicated in the development of the Grand Theft Auto franchise and of Western hit Red Dead Redemption and at least one video game analyst believes that this could actually make the company more attractive for a take over offer.

Arvind Bhatia, who works for Sterne Agee, has said that the move from Take Two and Rockstar “makes the company a more attractive acquisition candidate,” because it manages to eliminate “the single biggest overhang on stock.”

The analyst believes that Take Two has a strong library of intellectual property, most of which was developed in the last few years, since Strauss Zelnick has taken over leadership of the company, but that it is still vulnerable in financial terms for this year and the next.

Take Two is said to have a launch slate that might not performs very well against tough competition from Electronic Arts and Activision Blizzard.

The possibility of a National Basketball League lockout for the coming season also means that the company might have problems selling copies of its upcoming NBA 2K12 title.

After the launch of the Team Bondi and Rockstar Games developed L.A. Noire, a mix between adventuring and action, the stock price of Take Two shares has reached the highest level seen since 2008, when Electronic Arts tried to acquire the publisher.

It's not clear who would be interested in acquiring Take Two this time around.

Electronic Arts has gone through a tough restructuring process, which involved layoffs and is only now beginning to bear fruit, and is probably also put off by the failed attempt in 2008.

Activision Blizzard is performing well with its current line up of games and is probably not interested in acquiring a rival of Take Two's size.