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Posted
Jul 10 2009, 01:48 PM
by
Minyanville
Money Blog: Top Stocks Blog - MSN Money
Since we hit the credit crunch, Wall Street has seen a number of busted deals -- ranging from the aborted Harman (HAR) merger to Microsoft's (MSFT) attempted acquisition of Yahoo (YHOO). But as an avid follower of the video-game industry, the failure of Electronic Arts (ERTS) and Take-Two Interactive (TTWO) to achieve wedded bliss was the one that caught my attention.
What did EA have to gain with Take-Two? It's simple: mature-rated content in the form of Grand Theft Auto, and increased market share in sports. But there's another potential target that would give EA what it wanted with Take-Two, and that's THQ Inc. (THQI).
THQ is best known for its World Wrestling Entertainment (WWE) games and other licensed fare from the likes of Nickelodeon (VIA) and Walt Disney's (DIS) Pixar. The company also has some solid fully owned properties including Company of Heroes and Red Faction.
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Posted
Oct 31 2008, 04:32 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
In a recession, people are supposed to be able to buy soap, hamburgers, beer, and video games. This downturn may be worse than most. Electronic Arts, posted a net loss of $310 million and said it would lay-off 6% of its workers.
It is stunning to imagine that the maker of iconic games like "Madden NFL" and "Spore" could be doing poorly, but consumer spending may be worse than even the federal government numbers show.
Now that earnings season is fairly far along, what people will buy and what they will part with is becoming more clear. Oil companies did well. Consumers are still buying gas. So are airlines. Someone is using a lot of oil.
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Posted
Oct 27 2008, 11:24 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
The consumer's obituary has been written: John Q. Public maxed out his credit card on one too many Abercrombie & Fitch fleeces. He is survived by his flatscreen HDTV.
But my contrarian streak tells me that one type of consumer will rise from the ashes like Zelda when he finds a new shield. Like Super Mario when he eats a mushroom. Like Sonic the Hedgehog when he collects enough chaos emeralds. You get my point: Video games have long been regarded as recession-proof. Though that perception is being tested in this putrid retail environment, it's held true - so far.
According to NPD, US video game sales fell 7% in September from the previous year. However, last year's number was inflated by the monster launch of Halo 3. Through last August, video games sales were 32% ahead of last year's record-breaking revenue, bringing in $10.6 billion in the United States.
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Posted
Aug 28 2008, 02:31 PM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
Video games are always something I buy used, if I can. Oh sure, there's nothing like unwrapping a pristine copy of "Grand Theft Auto IV," but in general, video games don't deteriorate as they move to the second-hand market. The gaming industry doesn't make money off of a second-hand sale. And that's a "critical situation" for publishing giant Electronic Arts, an executive with the company told GamesIndustry.biz. How to fix the problem?
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Posted
May 16 2008, 09:09 AM
by
Andrew Horowitz
Rating:
Money Blog: Top Stocks Blog - MSN Money
After the recent merger with EB Games, GameStop is by far the No. 1 specialty retailer that focuses on the new and used video game market. The company has a total of 4,400 active stores in virtually every state and in 15 countries.
Revenue has been on the rise as the hot gaming market continues to grow exponentially. The latest editions of Rock Band, Guitar Hero, Halo 3 and the blockbuster Grand Theft Auto IV are all extraordinarily popular on every gaming platform.
But how will Gamestop continue to thrive in the face of significant competition from discount retailers such as Target and Wal-Mart? What’s more, the bulk-retailers are also selling video games in a time when
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Posted
Apr 29 2008, 03:57 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
The biggest video game of the year debuts today (actually it came out at midnight), and publisher Take-Two Interactive shares have seen a 5% run since April 3. "Grand Theft Auto IV" has been getting rave reviews, which have pushed up Take-Two stock, and you can expect to hear a lot about it in the next few weeks.
I think I liked this sentence from the New York Times' review the best: "'Grand Theft Auto IV' is a violent, intelligent, profane, endearing, obnoxious, sly, richly textured and thoroughly compelling work of cultural satire disguised as fun." Take-Two shares closed at $26.47 Monday.
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Posted
Apr 14 2008, 06:07 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Most companies on Nasdaq did fairly well with the shorts in the two-week period which ended on March 31. The two tremendous exceptions were Level 3, where short interest moved up 20.3 million shares to 243.9 million, and Sirius, where shares sold short jumped 40.4 million to 137.8 million.
In a tough stock market and credit environment, it is not hard to see why investors would place bets against both companies. Each stock trades near its 52-week low. Level 3 recently pushed out its president. Although it is in an attractive business, bandwidth infrastructure, it is a patch-work of M&A work with a large amount of debt and almost no cash-flow. In other words, a liquidation candidate in a deep recession.
Sirius is also hurt by a high debt-load -- over $1.2 billion -- and negative operating income. If the company's merger with XM Satellite does not go through, it may not be able to survive as a standalone company either.
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Posted
Mar 04 2008, 03:56 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
"Grand Theft Auto IV" comes out April 29, and I can't wait. It's the next installment in the controversial, violent, mayhem-filled series, and it will become the year's top-selling video game. Those who haven't played GTA are often mortified by the carjacking, cop-killing and other nefarious shenanigans it offers. But these games sell because above all else, they're unbelievably fun. (The new title will surely be rated "mature," so don't let the little ones get their hands on it.)
The upcoming game is a huge reason why Electronic Arts is making a major, and slightly hostile, play for GTA publisher Take-Two Interactive. EA offered $2 billion for Take-Two last month -- $26 a share, up from an earlier offer of $25 a share -- and was flatly rejected. Take-Two called the offer "the wrong price at the wrong time." Its shares, in the $16 range before EA's offer was made public, closed at $26.20 Monday.
Take-Two is smart to reject such a low offer. But how much is the company worth? A Wedbush Morgan analyst thinks EA should walk away if Take Two continues to thumb its nose. But Cowan's Doug Creutz thinks EA is justified in going as high as $32 a share. A Take-Two investor wants $33 a share.
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