Take-Two Interactive - apparently a co-conspirator with SPOnG
in 'racketeering' - has not only postponed a crucial board meeting
from March 23rd to March 29th, but according to a press statement, "The Board of Directors now believes that it is unlikely to present alternative courses of action prior to the annual meeting... The company is continuing to have discussions with representatives of the shareholder group."
The most likely 'alternative' mooted up to this point has been for the existing board to find a buyer, with Electronic Arts being quoted by many sources (and Microsoft whispered) as potential suitors. The fact that the company is stating that it is unlikely to present alternatives would appear to rule out a sale at this point.
Among other pointers, Reuters research as of March 25th states, "...its appeal is likely to be to Capital Gain-oriented investors. TTWO is of low investment quality."
However, this 'no alternatives' is being read in totally the opposite way by many industry analysts. At this time, Take-Two is unavailable for comment.
The company, responsible for publishing RockStar's Grand Theft Auto
series - and the critically well-received but poorly-selling Canis Canem Edit
), has been undergoing shareholder discontent, law suits from US attorney and SPOnG-hater
, Jack Thompson; and now its shares have been issued with a 'hold' call by analysts AG Edwards.
Newratings.com states, "In a research note dated March 22 and published on March 23, the analysts (AG Edwards) mention that the risks associated with the October release of Grand Theft Auto IV
include challenging comps, a scope for delay into FY08 and a competitive holiday season. In spite of the forthcoming release of GTA IV
and attempts to diversify, there is concern over Take-Two Interactive Software’s performance going forward due to its continued errors and its disappointing FY07 guidance, the analysts say. The sustained traction in the sports genre and the success of Grand Theft Auto IV
are likely to boost the company’s EPS growth going forward, AG Edwards adds."