Word is that Activision could be working on making an offer on Grand Theft Auto publisher Take-Two. Both companies share a number of synergies that might make for a good marriage.
Should such a deal come to pass it would leave Activision publishing titles from three of the most talented studios, Blizzard, Bungie, and Rockstar Games. All three have big franchises and translate into big money. One issue with Take-Two is that annualizing the company’s franchises could be an issue because the majority of the Take-Two franchises are not annual releases.
If we take a trip in the way back machine, you might remember that Electronic Arts to a stab at trying to cut a deal with Take-Two for around $2 billion that was rejected by the Take-Two board. Knowing the kind of coin that Take-Two is generating off of the Rockstar titles along these days, numbers like that are not going to get the job done. If it happens as Mike Hickey suggested in his recent Benchmark research note, it is going to take some serious coin to make it happen.
Stay tuned because where there is smoke there is often fire and we think there might be something to this after all.