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Ubisoft Vying For Take-Two?
Posted by Leigh Alexander at 7:20 AM on June 10, 2008
Take-Two Board chairman Strauss Zelnick recently said during his company's financial results call that Electronic Arts isn't the only company interested in acquiring Take-Two. "We have had and continue to have formal discussions with a number of interested parties," he said, but another "white knight," as analysts have called it, has yet to appear.
Forbes magazine thinks it knows who the other contender could be - Ubisoft, after ruling out Activision, who's already rather busy with a very big impending merger with Vivendi.
There are a few reasons why Ubi might be a good bet:
Well, for one thing, Ubisoft's profits are on the rise, reaching a "record high" for fiscal 2008. In March, the publisher reported a doubling of its income to $AU 181.64 million, along with $AU 1.58 billion in sales. Despite its past troubles, Take-Two is pretty top-tier, and very few of its fellow publishers could reasonably afford it - but Ubi's new numbers make it look more feasible for them.
Forbes adds:
In recent interviews with Forbes.com, Ubisoft North America's president, Laurent Detoc, has indicated the company is moving away from a pure games-based business in favour of what it hopes will be long-lived brands, extended across all forms of media. For instance, Ubisoft is developing a TV series and building a computer-generated imagery studio. A Prince of Persia movie, based on the game franchise, is also in the works.
There's a lot at Take-Two that could dovetail with Ubisoft's interests.
And Ubisoft has been diversifying, expanding into several genres - but as Forbes points out, their sports presence is pretty weak, with only Shaun White Snowboarding in the pipeline. They could really use Take-Two, then.
Forbes also asked an analyst:
"Ubisoft has shown they do a good job of managing original intellectual property. Culturally, Take-Two developers would not have a problem at Ubisoft because they allow a decent degree of creative freedom", says Doug Creutz, analyst at San Francisco firm Cowen and Co.
Michael Pachter also told Forbes he thought Ubisoft and Take-Two might be a good match. But I've discussed the same matter with Pachter and other analysts myself, and it's likely that once EA gets FTC clearance for the merger, they'll be forced to raise their bid into the $AU 31.6 per share range, territory that Ubi might be very hard-pressed to top.
Still, on that results call, Zelnick was careful to clarify that while Take-Two may be in other merger discussions, nothing has progressed to the negotiation phase.
Take-Two's EA Alternative [Forbes.com]
Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
MOP88
Posted 7:51 AM 10/6/08
Next up: GTA Paris!
MOP88
Eon.
Posted 7:50 AM 10/6/08
It depends, I agree with some of the previous comments. EA are improving in my opinion whilst Ubisoft are going downhill. That's just imho though.
Eon.
dynendal
Posted 7:50 AM 10/6/08
@interstate78: Don't forget golf games. Mario Golf/We Love Golf + Hot Shots Golf beat the shit out of anything EA's ever offered.
dynendal
pharcotix
Posted 7:48 AM 10/6/08
ubisoft >>>>>>>>> EA
at the very least, the 2k Sports line would live on. I don't care if its Sony, MS, Activision, Ubi, etc. Anyone but EA..
pharcotix
interstate78
Posted 7:47 AM 10/6/08
I'll add a little insight to this story: If EA buys out or kills every sports developer because of their purchase of exclusive licenses, then they won't even need to buy the licenses anymore because they won't have any competition left
next-gen sports games costs millions to make and are impossible to recoup during the first years (2k sports anyone? how long did it take before they finally got some recognition?)
That would make sports games too risky for any developer to venture in the future and so leaving nearly the entire sports market to EA (except for Tennis, Soccer and F1 games, I guess)
interstate78
MeanMF
Posted 7:46 AM 10/6/08
"Ubisoft has shown they do a good job of managing original intellectual property."
/head asplode
MeanMF
Wolf_Dog
Posted 7:45 AM 10/6/08
OH DEAR GOD NO!!
Editorial is gonna start messing with Take-Two now...
Wolf_Dog
Pezdispenser
Posted 7:44 AM 10/6/08
Ubi can't buy T2, they're too busy courting Valve, and here's the visual proof!
+ Watch video
Pezdispenser
interstate78
Posted 7:42 AM 10/6/08
YES! FINALLY!
They MUST sell to Ubisoft or not sell at all
If EA buys Take2 they'll just kill Visual Concepts (2k sports) and that would be the end of an era.
All sports games on the market would be made by EA only
That's just ridiculous
interstate78
jfx316
Posted 7:42 AM 10/6/08
i say go with sony or MS. it would be the best bet and they would make bank off the deal.
but, it won't happen. rockstar should bail out and go indie. that's who everyone really wants.
jfx316
Tull
Posted 7:40 AM 10/6/08
@Nirolak: Ubisoft doesn't have to use all of their cash reserves to try and acquire Take-Two. Most companies trying to make acquisitions will split it between cash and stock and with Ubisoft's stock on the rise then that will more than make up the difference. Another way is for Ubisoft to borrow some of the cash from investment banks and with their current success the past couple years it wouldn't be a problem for them to acquire credit from any large bank.
Tull
Kamesen
Posted 7:39 AM 10/6/08
What a fucking shitshow. Who knows what will happen in the end? I'm gonna write a book about it.
Kamesen
KingBroly
Posted 7:38 AM 10/6/08
Wait, doesn't EA own a good chunk of Take Two? That would mean EA...buying...Take Two...damn, EA's persistent, aren't they?
KingBroly
eddienoteddy
Posted 7:37 AM 10/6/08
sure why not..
deadline set at July 16th! NO EXTENSIONS, or maybe one, then another, then another, take your time
eddienoteddy
Nirolak
Posted 7:37 AM 10/6/08
The one problem with this idea is that Ubisoft only has a $1.2 billion acquisition warchest ([www.joystiq.com]) while EA already has $2 billion in cash for this deal and took out an additional $1 billion loan as well, meaning that Ubisoft would have to go into a ton of debt to compete with their offer.
Nirolak
Spoony Bard
Posted 7:35 AM 10/6/08
Grand Theft Assassin's Creed. Coming Soon.
Spoony Bard
VonDante
Posted 7:35 AM 10/6/08
Man, as long as EA doesn't end up with Take 2 I will be happy. Like a few have said I would rather things stayed as they currently are.. but anybody buying them out would be better than EA doing it.
VonDante
SkutSkut
Posted 7:34 AM 10/6/08
I can't wait for GTA: Babiez!
SkutSkut
Tull
Posted 7:33 AM 10/6/08
EA trying to buy Ubisoft will be a harder time than what EA is going through with Take-Two. For one thing Ubisoft without Take-Two is already one of the big boys in the publishing block. I don't think 2 or even 6 billion in cash will be enough to buy Ubisoft.
Tull
wild homes
Posted 7:32 AM 10/6/08
Electronic Arts owns a small voting block in Ubisoft, though. Isn't it like six percent? I'd laugh my ass off if Take-Two gave Ubisoft favorable terms and then EA just bought up Ubisoft.
wild homes
AEREC
Posted 7:31 AM 10/6/08
To me, UBI is the new low. I get that sinking feeling when I see thier symbol on a game I might be interested in. This used to be how I saw EA but they have moved up a little in my book this generation. In this case EA is the lesser of the two evils.
I really hope UBI has nothing to do with future GTA's.
AEREC
Grimmjow Jeagerjaques
Posted 7:31 AM 10/6/08
@Tha_Game: didn't EA purchase like 20% of Ubi's stock? (or whatever you guys call it)
Grimmjow Jeagerjaques
Shiloa
Posted 7:30 AM 10/6/08
Yuck, Ubi are fast becoming the next EA.
Shiloa
Tha_Game
Posted 7:29 AM 10/6/08
I would be so damn happy with UbiSoft than EA that mean They cant stop my 2k sports yeaaa yeaaaahhh...now lets hope Ea dont buy UbiSoft...
Tha_Game
Tull
Posted 7:29 AM 10/6/08
Even though Nintendo has been flush with cash since the release of the Wii I don't see them buying Take-Two. They seem quite content to keep their new-found wealth and swimming in it Scrooge McDuck-style.
Tull
TheTimeRanger
Posted 7:28 AM 10/6/08
I would rather have take two as a stand alone then with EA or Ubi... But if i had to choose maybe Ubi. But then again, EA are getting better.... which pains me to say.
TheTimeRanger
dynendal
Posted 7:27 AM 10/6/08
Does this mean we'll get decent Wii games?! Or am I too hopeful?!
dynendal
Tull
Posted 7:26 AM 10/6/08
Though I think Take-Two will probably be taken over or bought by a company that's less about exclusive-titles and more multiplatform.
Tull
StealthMaster86
Posted 7:26 AM 10/6/08
I don't trust EA with Take-Two but I do trust Ubisoft.
StealthMaster86
Ampillion = That Man.
Posted 7:25 AM 10/6/08
So...
In a few more years, are we going to see the same sort of gaming industry crash we've seen from the automotive industry after everyone's done gobbling each other up, only to realize that it wasn't worth it in the end and if you're not constantly changing, you become extinct?
Ampillion = That Man.
Tull
Posted 7:25 AM 10/6/08
And then the world ends when Take-Two suddenly announces MS made them an offer they couldn't refuse. I mean MS does have 40 or so billion they weren't able to spend when Yahoo! and Jerry Yang decided to screw its investors prison-style.
Tull
Grimmjow Jeagerjaques
Posted 7:25 AM 10/6/08
they should go with Sony, MS, or .... Nintendo.
Grimmjow Jeagerjaques
mcool93
Posted 8:26 AM 10/6/08
Ubisoft buying Take 2 is the same as if EA bought T2. Since EA owns 20% of Ubi, then it's obvious that eventually, EA will buyout Ubi so in the end, EA will still have T2.
mcool93
mx5
Posted 8:25 AM 10/6/08
@Tull: Ubisoft big? Market cap is 2.7 bil vs 2.1 bil of TakeTwo. EA has around 15 bil market cap. So, I wouldn't call Ubi big boy compared to Take Two ...
mx5
wild homes
Posted 8:17 AM 10/6/08
@interstate78: If it is all about the sports titles, it would be far more cost-effective to just buy the exclusive rights to the NBA and NHL than to buy Take-Two. Then Visual Concepts would just make baseball games until the deal is up and EA buy the MLB license, too.
The best thing for Visual Concepts is to join up and change EA from the inside, rather than die on the outside with no licenses to work with.
wild homes
CCCombobreaker
Posted 8:12 AM 10/6/08
@Grimmjow Jeagerjaques:
I was considering Microsoft until I realized that neither one of those companies would buy take two. Nintendo for obvious reasons, and Sony and Microsoft because they don't want to piss off EA.
CCCombobreaker
Tull
Posted 8:05 AM 10/6/08
@Kenny: Because its big business with investors who want the best return for their investment and that sometimes mean allowing one's company to be bought by a larger one to make money for those same investors.
Tull
Kenny
Posted 8:03 AM 10/6/08
Ubi is almost as bad, or worse, than EA.
Why don't they just stay the way they are?
Kenny
Tull
Posted 8:02 AM 10/6/08
@mva5580: I wouldn't discount them selling to either Sony or MS if they got assurances that the core titles from Take-Two will remain multiplatform. And between Sony and MS I put better odds MS acquiring Take-Two than Sony. In the end its whoever can offer the most and no one in the gaming business has more money than MS.
Tull
interstate78
Posted 8:01 AM 10/6/08
@dynendal: Yeah I forgot Golf but then again I also forgot Lacrosse :P
I wonder if the PGA has an exclusivity with EA? I'd think so seeing no other company makes PGA Golf games.
It's really surprising how many exclusive licenses for Sports EA has.
interstate78
mva5580
Posted 7:58 AM 10/6/08
If 2K sells to EA in the end, they truly have no soul and should be ashamed of themselves, if only for the reason that they would effectively kill sports video games. No other company would be in a position to even care about making sports games anymore, EA would control it all. And it would be a damn shame.
But of course, that's probably what will end up happening. The only thing that is obvious at this point is that SOMEONE is going to buy this company, otherwise this talk would've been squashed a while ago.
Personally I wouldn't be hugely against Microsoft buying them, because MAYBE that would increase the possibility of the 2K Sports games on PC. But I don't see them selling out to one of the Big Three console makers.
Should be interesting. Very unfortunate though if it ends up being EA.
mva5580
mike566
Posted 7:54 AM 10/6/08
Oh god, EA take T2 quick.
mike566
okenny :)
Posted 8:54 AM 10/6/08
Poor take two... once a powerful companies... now has everyone vying for whose bitch it's going to be.
Well I can see TakeTwo in the dingy motel room filled with smoke with it's half naked body covered with soiled white sheets. It holds its face in its hands while crying in shame. EA tosses a wad of cash at her and it hits her in the face and scatters over the bed. Some if it falls on the flow. EA leaves the door open and Ubisoft walks in while rubbing its crotch and licking its lips. Outside, Microsoft and Sony wait patiently in line for their turn.
okenny :)
AuraHACK
Posted 8:43 AM 10/6/08
I can only see the headlines...
• Ubisoft aquires Take-Two
• Ubisoft announces Tom Clancy's Table Tennis
• Ubisoft announces Midnightz Clubz 4
• Ubisoft announces Grand Theft Auto V for PS3, 360, PC, Wii, PS2, DS and PSP
• Ubisoft announces Tom Clancy's Manhuntz 3 for all consoles, Xbox and Gamecube iterations to also be released
• Ubisoft denies BioShock 2's future setting rumors, screenshots with digital numbers and techno overlays said to be "misconseptions"
AuraHACK
Samos42
Posted 8:42 AM 10/6/08
Ubisoft taking Take 2 would be cool. I've always liked Ubisoft. Mainly because the name and logo is awesome. But also because I like A LOT of Ubisoft series. I like EA too though so it really doesn't matter to me.
Samos42
Klopfer123
Posted 8:39 AM 10/6/08
@CCCombobreaker: 'Microsoft because they don't want to piss off EA' Well if Microsoft did step in an acquire T2. They wouldn't drop support for the 360, not only would it be moronic business practice but it'd ruin their whole strategy of appealing to the biggest audience possible.
Klopfer123
dsmx
Posted 8:35 AM 10/6/08
I would rather no one bought take 2 however at least if Ubisoft buy T2 they will still make the sports games, whereas if EA buys T2 there will be no competition for EA in the sports game market, effectively.
dsmx
mcx
Posted 9:09 AM 10/6/08
I just want 2kSports to live on. I like Ubisoft or Activision. Someones gotta keep EA sports in check.
mcx
interstate78
Posted 9:05 AM 10/6/08
@wild homes: NBA and NHL refused to sell exclusive rights to either Take2 or EA
interstate78
Kanik
Posted 9:01 AM 10/6/08
Big Daddyz for the Nintendo DS.
Grow your Big Daddy, play with it, feed it, cuddle with it...and it will one day return the favor by killing that creepy man who has come to grab at you.
Kanik
One_Crazy_Idiot
Posted 9:59 AM 10/6/08
Has everyone forgotten that EA owns nearly 20% of Ubisoft. So if Ubi gets T2, then EA by default gets T2.
Thanks Wiki
One_Crazy_Idiot
akilshohen
Posted 9:47 AM 10/6/08
The French Goverment would stop EA from getting Ubisoft....remember what happened when EA tried the first time? They were even about to get help from Vivendi and Atari .
I think it would be better if Ubisoft got them, but One can only dream of Capcom owning them. There's too little degrees of seperation for it to not be perfect.
akilshohen
wild homes
Posted 9:40 AM 10/6/08
@interstate78: So far. If EA really want it, enough to open the checkbook real wide, it'll happen. EA are taking this licensing thing very seriously. They ALREADY announced their intention to extend the NFL deal. Visual Concepts cannot spend money the way EA can. And this is all about money.
wild homes
sir_carrot
Posted 9:36 AM 10/6/08
What is with all the merging lately! There can and MUST be more than one!
Ubi is almost as bad as EA.
sir_carrot
mcrproductions
Posted 9:36 AM 10/6/08
@StealthMaster86: I'm not a big fan of Sports games...but I don't really think Ubisoft deserves GTAV. Actually...I dont think anyone should buy out Take-Two. Resist!
mcrproductions
KEITH1437
Posted 9:30 AM 10/6/08
How has Activision not tryed to do the same?
KEITH1437
jfx316
Posted 10:25 AM 10/6/08
@Kanik: wow. i don't know what to say about that. disturbing isn't even the word.
jfx316
Molockian
Posted 10:15 AM 10/6/08
I just hope 2k can pump out atleast nba 2k9 before this goes through I cant imagine playing the horrible EA nba games. Hell they pretty much already have a monopoly on most sports games. With no competition all sports games will be repeats of the same shit every year.
Molockian
Syrus28
Posted 10:56 AM 10/6/08
Scratch that. Microsoft should just buy EA! Why not? They do have $40 billion sitting around waiting to be spent after all...
Syrus28
Syrus28
Posted 10:55 AM 10/6/08
Hmm... Microsoft buying T2 would be interesting... They could gobble up GTA4 and screw Sony for life... Same thing with the sports games.
Syrus28
GrimCW
Posted 10:45 AM 10/6/08
god no!
EA would do better with T2.
Ubi's record of mashing so called "sequels" out yearly is horrid and got me from wasting time buying anything else from them.
they don't even bloody support their titles for more than 5 months after release much of the time!
i can see it now though, a new GTA each year, one right after the other using the SAME game engine repeatedly with as minimal changes as possible and no fixes to old bugs ever, each one with minor tweaks to gameplay that soon turns the game into a watered down action/arcade game that would feel better in a chucky cheeses
GrimCW
monkey_87
Posted 12:00 PM 10/6/08
Here's hoping for GTA: San Andreas Storiez then!
monkey_87
kemicon
Posted 12:47 PM 10/6/08
EA and Ubi stay away from my homies at 2K or you'll answer to Mr. Right and Mr. Left. I'll take ya both on at the same time ... with one arm behind my back. Then you'd technically only be answering to Mr. Left, or Mr. Right but you'd still have no chance. NO CHANCE.
kemicon
KaliKOtt
Posted 2:09 PM 10/6/08
Grand Theft Autoz for Wii/DS!
oh noez I forgot that they hate teh wii!
KaliKOtt
Does Not Equal
Posted 2:33 PM 10/6/08
A merger between would keep EA at bay, as both companies know what it feels like to have that particular wolf at your door. "The enemy of my enemy" and all.
Does Not Equal
re4de2ye0
Posted 1:13 AM 11/6/08
If Microsoft is really serious about becoming a front runner in the videogame market, this is a smart purchase. If EA gets take two then I will simply quit playing sports games all together because everything will be EA branded. Bill, if you are reading this, open up the check book and in the words of The Don, "...make them an offer they can't refuse."
re4de2ye0
Xcite79
Posted 11:30 AM 11/6/08
Ubisoft is no different than EA. Most of you dont know what your talking about so became against EA because many others are.
Xcite79
matt_247
Posted 11:57 AM 10/6/08
Microsoft should just buy them so they can get Bioshock to be an exclusive again and have their own sports games. I don't think Sony will buy them because they already have their own sports games, but they will cry when GTA is gone so maybe they might try and buy them.
matt_247
OutsideTheBox
Posted 11:27 AM 10/6/08
Funny how EA has the reputation of treating employees like slaves, yet Ubisoft is the company that holds all its employees to non-compete work contracts- effectively making any Ubisoft employee an indentured servant (unless they want to work at McDonalds for a year after leaving Ubisoft).
[www.next-gen.biz]
OutsideTheBox
Orian
Posted 7:34 AM 10/6/08
Well isn't this fun. One one side T2 is possibly going to be devoured by the shit snake known as Ubisoft, on the other the shit hawk known as Electronic Arts. I feel sorry for T2. No matter where they turn... they're surrounded by shit predators.
Orian
oranos
Posted 7:26 AM 10/6/08
Take-Two letting Ubisoft buy them instead of EA is a slap in the face. Honestly, who is worse in your eyes? The publisher of so many horrible DS titles and shovelware and disappointing games/buggy games?
Now I realize you can say the same about both, but Jesus Christ, Ubisoft is the last place I would want to see Take-Two go.
oranos