14 DAY TRIAL // The share value of publisher THQ has grown by 13% in trading, as more rumors appeared that the company was being considered to be a ripe target for a take-over by at least two media giants. The Wall Street Journal, which knows a thing or to when it comes to business and acquisitions, was reporting that both Time Warner and Viacom were looking at THQ as being a good way to extend their presence in the gaming industry.
Atul Bagga, who is an analyst with ThinkEquity, was quoted as saying that, “We do think that both Time Warner and Viacom are interested in the gaming space.” A quick look shows that both companies already have a presence in the said gaming space, even if it is not under their own name. At the moment, Viacom controls MTV Games, which collaborates with Harmonix to put out the Rock Band series of music-simulation games, while Time Warner has recently become the owner of Midway, through its Warner-Bros subsidiary.
Brian Sozzi, another analyst, has told the Wall Street Journal that the two above-mentioned companies could expect to pay between 12 and 15 dollars for a share of THQ, with the current value hovering around half of that at this point in time. Still, neither Time Warner nor Viacom has commented on the story and, at the moment, a move looks unlikely.
Lately, THQ has been on a comeback, after being plagued by financial issues. It has implemented tough, cost-cutting measures and has recently released successful video games based on the UFC and the WWE franchises. Still, the publisher lacks any blockbuster, self-created intellectual property, which might make it interesting to companies like Viacom and Time Warner, which have the properties, but lack actually experienced teams to convert them into video titles.
Another rumor also said that Electronic Arts might become a target for acquisition and its shares also went up.