T2 Stock Closes Below EA Offer

$25.14 Stock Price May be Sign of No Deal

Suddenly, a $25.74/share price for Take Two Interactive may be an investor goldmine.

All this week T2 stock has closed below Electronic Arts’s latest buyout offer.  Monday’s close wasn’t as dire, but Tuesday’s stock slip to $25.14 has some wondering if investors are losing faith in the company.

Indeed, the stock nearly doubled in value once EA announced its intentions to pursue T2 earlier in the year.  Before this week the stock price has managed to weather a barrage of rejections from company brass.  The slip may be an indication that when Take Two says “no deal,” they mean it.

GamePolitics.com asked Michael Patcher about what this trend signals for EA’s acquisition prospects:

The daily [share] price is the probability-weighted price of a [T2-EA] deal happening. [The expectation of] no deal is [priced] around $17-20, a deal at $28 has a relatively high probability. Before, the arbs placed a higher chance of a deal, and a higher [share] price.

Patcher still expects a deal to happen, though in the $27 to $28/share range.

Stay with TSSZ for developments in this current stalemate between Take Two Interactive and Electronic Arts.