Electronic Arts (NASDAQ-ERTS) made an offer of $26 a share for Take Two Interactive (NASDAQ: TTWO), a publisher of Grand Theft Auto videogames.
ERTS is recenlty trading down $1.54 to $48.21.
Smith Barney: "We believe ERTS views TTWO as a strategic asset and may be willing to pay slightly, but not materially higher than its current offer."
ERTS has as market cap of $15.7 billion with zero long term debt. ERTS had 2007 total revenue of $3 billion. TTWO had 2007 total revenue of $981 million.
ERTS March option implied volatility of 35 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
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