According to a report published in the Dow Jones business newswires, Take Two may make a bid for Vivendi Games with backing from financial partners. The acquisition would be a huge one for Take Two, which last year had revenues of $794 million – significantly less than the price it would be expected to pay for Vivendi.
Until now the two main contenders in the frame were thought to be Electronic Arts and Microsoft, although other recent reports have suggested that Microsoft has now lost interest in the publisher and dropped out of the running.
Despite the relative sizes of the two companies, Take Two is actually in a fairly good position to acquire Vivendi Games, as it is held in high esteem in the financial community thanks to the overwhelming success of the Grand Theft Auto franchise. Securing backing for such a takeover would almost certainly be possible.
The prices quoted in the report are unusual, however; it’s thought that one of the stumbling blocks in negotiations over Vivendi Games so far has been the price, with Vivendi unprepared to part with the division for less than $1 billion but suitors valuing the group at $800 million or less. Vivendi chairman Jean-Rene Fourtou has reportedly put an optimistic price tag of up to $1.6 billion on the games unit, a figure which it is extremely unlikely to approach.
Source: Gamesindustry.biz
