VOLUME SPIKE: Take-Two (TWO, ERTS)

Posted in General, pre-market 
August 18th, 2008

Take-Two Interactive Software, Inc. (NASDAQ: TTWO) is seeing a major move this morning.  So far it isn’t a good one.  Shares closed Friday at $24.84 and we are seeing a 5.5% drop to $23.47 on 426,906 shares as of 9:25 AM EST.

If you recall, Electronic Arts (NASDAQ: ERTS) has been in an effort to acuire Take-Two for longer than most care to remember.  Apparently Electronic Arts has accepted an offer from Take-Two to give a management presentation containing non-public information, although the company does not believe it can integrate operations before this holiday season.

Electronic Arts has also said that its tender offer set to expire at 11:59 PM tonight will also be allowed to expire.  The company now needs time for due diligence and will see an FTC review on or around August 21 for antitrust reviews.

The long and short is that this looks more and more like a deal that will evaporate.  Whether or not that occurs, well this courting session has been an incredibly long one and its time to come in for some hot coffee or go home alone.

Take0two trades about 1.2 or 1.3 million shares per day.  You can expect that number to be greatly exceeded in volume today.  The 52-week trading range is $12.02 to $27.95.  Electronic Arts (NASDAQ: ERTS) is indicated up about 1% on the hopes that it will face lower dilution now.

Jon C. Ogg
August 18, 2008

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