Okay, now everybody has declared their earnings, we thought we'd have a quick look at what happened since Electronic Arts withdrew its offer for Take-Two Interactive: September 15th 2008 being the first day of trading after that occurred.
(We also thought we'd throw in the fates of Activision/Blizzard
for some comparison.)
So, we looked at the stock prices for all four companies since September 2nd, 2008 when EA withdrew from Take-Two
... sorry, from its acquisition bid for Take-Two. That bid was worth $25.74 (then £12 now £16) to T2's stockholders.
Now, bear in mind that all the NASDAQ prices here are also tracked through the 'credit crisis'. We are going to say that began... on September 15th - the day that Lehman Brothers filed for bankruptcy. Also bear in mind that this is a quick calculation based on publicly available data.
Anyway, on September 2nd 2008, Electronic Arts closed at $48.97 per share. Take-Two closed at $24.54.(Activision closed at $16.40. THQ closed at $15.51.)
The EA bid was still in play.
On September 12th - the Friday before EA withdrew: EA closed at $44.99; Take-Two closed at $21.89. (Activision closed at $17.51; THQ closed at $13.35.)
On September 15th - the first day of trading after the withdrawal of the bid: EA closed at $43.30; Take-Two closed at $16.57. (Activision closed at $16.79; THQ closed at $12.59.)
So, how do we stand today - well, at close of trade on November 6th? EA closed at $22.21; Take-Two closed at $11.41. (Activision closed at $12.01; THQ closed at $4.68.)
That means that, since September 12th: EA's stock price is down 50.63% and Take-Two is down 47.88%. (Activision is down 26.77%; THQ is down 64.94%).
What does all this tell us? Firstly, it tells us that every single stock price worth thinking about has tanked in recent weeks. Secondly, it tells us that the Take-Two and EA deal really has not affected either company more than the other given the current financial climate. Thirdly, it tells us that if you are a T2 stockholder, you are probably looking back at September 12th - when you were being offered $25.74 for each of your shares compared to the $11.41 they were worth at close of trade yesterday - and you are sighing in a mildly annoyed manner. If you're an EA stockholder, you're probably quite amused.
As we say, this is quick calculation based purely on NASDAQ prices, viewed through a recession; it should definitely not be used by anybody to decide to buy or sell stock. That said, we're off to buy some Take-Two shares before the GTA IV
DLC cuts in and the PS2 and Wii versions hit (we jest).Chart