Wednesday, September 23

Talk of THQ takeover causes stock to rise

THQ has been doing pretty well lately, with UFC 2009 Undisputed scoring big sales for the once unstable publisher. On top of the company's recent success, news that the they're being eyed for a takeover bid shot up the company's stock an impressive 13 percent yesterday.

Investors are not too sure, although they think a take over's in the works, they note nothing concrete would happen in the near future. Speaking to reuters, MKM Partners analyst Eric Handler says, rumors of a THQ buyout crop up every quarter. He, as well as Wedbush Morgan's Michael Patcher voiced that THQ is heavily licensed, and a take over would void too many contracts on change of control. Here's Patcher:

"THQ is on heavy licensed content, and many licenses potentially terminate on change of control. I don't see their recent performance instilling a lot of confidence in their ability to manage a bigger library of content that would be presented in a media buyout." Wow, okay Patcher, you sound a tad pessimistic there; but hey, you know what you're saying right? Right?

09/23/09 Ernice Gilbert

No comments:

Post a Comment