Analyst: EA acquiring Take-Two to boost its own value

In the world of corporate news, a lot of attention has been centered on Electronic Arts‘ recent plans to acquire Grand Theft Auto IP owners Take-Two Interactive. Deutsche Bank analyst Jeetil Patel had a couple of choice words to share regarding the matter, as well as his own analysis on the current financial state of EA. Read more about what Patel had to say in our full article.

Deutsche Bank analyst Jeetil Patel shared a couple of choice words regarding video game publisher Electronic Arts and its current financial state. He mentioned  EA’s latest move to acquire Take-Two Interactive was merely seen as a way for it to boost its own value by procuring the creators of the high profile IP series, Grand Theft Auto.

Despite Patel’s comments about EA’s flagging position as one of the leaders in the industry, he mentioned that EA can still be thankful for the handful of titles such as Rock Band which help boost its market shares considerably.

Patel noted that without the US$ 55 million sales obtained from Rock Band, EA’s market share would only amount to a mere 12.3% – a considerably lower cut from last year’s 14.5% market share. He was neither impressed with the overall product portfolio of the company.

While EA may still have a couple of original IP ideas up its sleeve, it may not be enough to make the needed push for a turnaround in its fundamental studio product quality in the span of three to four quarters. In any case, Patel believes that fiscal year 2009 will become the defining year for EA to either step up or admit that it has finally lost its product development luster.