Ubisoft Possible EA Rival Over Take Two
Electronic Arts and Take-Two have been at an apparent stand off for months as EA keeps extending its offer to buy out T2. It appears that T2 has been doing more than just stalling to raise the asking price. According to Forbes, the company may be negotiating with Ubisoft over a possible merger.
During T2′s second-quarter earnings call on Thursday, chairman Strauss Zelnick revealed that he’s “had and continues to have formal discussions with interested parties” on the company’s potential sale or merger.
Ubisoft is looking to expand and diversify its interests and T2 would fit that plan nicely. In particular Ubisoft wants to expand into sports video games. T2 is pretty much the only competition EA has in the sports arena.
“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.
“Ubisoft has grown phenomenally over the past few years,” says Todd Greenwald, an analyst at Signal Hill. “But the only way for them to continue to grow is to enter categories that they aren’t in.” Buying is always easier than building.
Call me petty, but I’d like to see Ubisoft and T2 merge rather than having T2 swallowed by EA.