Electronic Arts would be wise to buy 2K Sports, or so says industry analyst Michael Pachter for Wedbush Morgan Securities. The suggestion came amid the move from Wedbush downgrading Take-Two Interactive's stock from "hold" to "sell" Friday. Take-Two Interactive owns 2K Sports as a subsiderary.
"It is clear to us that Take-Two's sports business would have tremendous value to EA, as it would give EA a monopoly on football, basketball, baseball, and hockey," Pachter said. His analysis concluded that EA might purchase 2K Sports for as much as $200 million dollars, but he noted, "It is arguable that EA would benefit by as much as $1 billion if it were to obtain an exclusive; this does not mean that it is willing to pay $1 billion."
