EA Hits Re-Set on Take-Two

Source: http://www.zacks.com/stock/news/14268/EA+Hits+Re-Set+on+Take-Two
Posted on Monday, August 18th, 2008 | In Market Commentary, Stocks to Watch

Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

Quoted in a Reuters report this morning that “it no longer believed it could benefit from completing an integration of Take-Two (TTWO) before the holiday shopping season,” management at Electronic Arts, or EA (ERTS), has decided to allow its $2 billion bid to buyout Take-Two Interactive to lapse. Both stocks are down this morning in a lackluster trading session.

Ahead of the announcement, analysts have soured somewhat on EA earnings expectations. For the September quarter, 4 analysts have ratcheted down estimates in the past month, while 5 have done so for fiscal years 2009 (ending March ‘09) and 2010. This follows four straight quarters of positive earnings surprises for the company.

No revisions have been made either up or down for Take-Two in the last 30 days, but the dropped buyout had taken shares of TTWO below $24 for a period this morning. However, included in the Reuters report was that the two companies remain in talks with one another privately.

“TTWO” Free Stock Analysis: Buy? Sell? Hold?
“ERTS” Free Stock Analysis: Buy? Sell? Hold?
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