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Electronic Arts Inc. (ERTS) Message Board

  • thesavvymonkey007 thesavvymonkey007 Oct 15, 2010 2:36 PM Flag

    I'll Say It Again... YOU NEED TO BUY OUT TTWO, ERTS!

    Just do it, ERTS... For the love of GOD! It would solve SO many of the problems with this stock right now.

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    • Well agreed on one thing, these two getting together won't benefit anyone since I think ERTS would drag TTWO down with them.

      I don't know about Wall Street's issues with ERTS' mgmt but they HATE TTWO's mgmt and that is what is reflected in the price. TTWO's mgmt simply does not play the street's game and they are no where near big enough to try and bully analysts and bankers around and they have been made to pay for it, no question. But their fortunes have turned some time ago, and if they have a GTA 5 announcement that says it will arrive next FY, TTWO will have a big fat I told you so on their hands. If it is announced for release after 10/31/11, WS will kick them in the crotch one more time.

      Lukewarm performance? Cmon, seriously. Now who sounds like a desperate TTWO rather than a long cheerleader which I guess you think I am. RDR, 7 million units. Mafia 2, contrary to Pachter already is profitable and also landed in the NPD top 10 for Sept in its second month's release, in the face of Halo Reach. Free money mentioned before from Duke which came from out of the blue. Civ 5 on fire. NBA 2K11 getting some of the best reviews of any sports games and oh yeah, no competition from Elite by the way. DLC keeping RDR and even Borderlands interesting and additional revenue generating. No way TTWO is perfect, but you are thinking in the past, especially if you think they still have skeletons left to bare. That is a very old story played out long ago and I firmly believe they are long gone. Only time will tell about either company, but clearly we see things quite differently.

    • I've yet to see a compelling reason as to why this should happen.

      GTA has already peaked. Bioshock is a 2nd/3rd-tier franchise at retail, as is Red Dead. TTWO's baseball offering is an also-ran, leaving only the NBA title for all intents and purpose as the only offering in TTWO's quiver with much upside. (And EA's NBA Jam seems to be doing quite nicely at retail.)

      So, aside from the distinct likelihood you were among those foolish enough to buy TTWO *after* EA made their idiotic tender offer some time ago, where's the value for ERTS shareholders?

      • 3 Replies to austin5547
      • Sounds like your in bead with Pratcher and the Wedbush Morgan TTWO SHORTS?

        Sure sounds like it!

        Buy BUy

      • Not even worth a response as you are so clearly ill informed of the stable of games in the pipe for TTWO over the next 2 years, and you quite obviously undervalued all of the games you mentioned other than baseball which has already been written down and the contract expires in 2012.

      • If Red Dead is a 3rd rate title at retail what exactly does it make your "Medal of Honor" franchise now? 5th rate?

        This is a surprisingly assinine post.

        Regardless of whether you agree or disagree with ERTS buying TTWO, your assessment of the latter company is ill-advised, and certainly not well researched.

        TTWO has had a string of successes lately -- most notably RDR and NBA2K. The former received critical praise and has shipped almost 7 Million units. The latter has also gathered near perfect scores and reviews, and say what you want, the addition of Jordan was marketing genius that obviously was lost on the brainchildren at ERTS. These are facts. RDR has a very good chance to be Game of the Year. Exactly what review scores has MOH garnered? NBA Elite was a huge gaffe with ERTS practically handing TTWO the market. You never want to allow customers the opportunity to try a competing product. The fear is maybe they never come back. ERTS has made an excellent NHL game, but unfortunately hockey just doesnt sell that many units.

        But the obvious point you miss is the duplicated efforts of both companies pouring out NBA and NHL games. A combined company has a monopoly on the sports segment with fewer costs to generate higher sales.

        TTWO baseball games have indeed been weak. ERTS has more marketing muscle, which no one will dispute. A tie-up might launch a Baseball game that could compete with "the Show." Baseball can be a lucrative market if TTWO did it better/had more resources. ERTS made some very good Baseball games prior to losing the license.

        If Grand Theft Auto, the second highest grossing franchise ever (after Mario) has peaked, then I would suggest you refer to GTA4's release which was the largest one day sales release in history before CoDuty and Halo subsequently surpassed it. Let's see, Coduty and Halo.....are those ERTS properties? Exactly.

        The 600 pound gorilla (ERTS) aint the 600 lb. gorilla anymore.

        Are you prepared for an NFL lockout? Boy, Madden 2011 would be a hoot wouldnt it?

        TTWO provides some solid diversifation with upcoming titles like Duke Nukem Forver (finally), Bioshock Infinite (which is getting glowning early reviews), LA Noire (upcoming action thriller), and some decent kids properties (2k Play), and all in all the quality of the games and the release schedules are being hit. And unlike ERTS, TTWO has turned a profit the last few quarters.


        Not sure if a buyout will occur - but I do believe it would help ERTS more than hurt ERTS at this point (pending rationale purchase price).

        eliminating competion; streamlining studios and TTWO leveraging ERTS' massive distribution? Its actually a win-win.

        People thought ERTS selling its stake in Ubisoft was pre-requisite for this deal (maybe on the monopoly front? or to raise cash)?

        Disclosure: I am long TTWO, so of course I would like to see a deal. But I am long TTWO partly for that exact reason -- much value that is not reflected/unlocked in share price. If ERTS thought they were worth $2B two years ago, the company is actually in better financial shape now, and had added better franchises!

 
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