Broadpoint AmTech analyst Ben Schachter has said that videogame companies in Asia, and particularly in China are looking to invest large cash balances in Western operations. He pointed to THQ and Take-Two as two possible targets. Schachter made his comments in an interview with Industry Gamers. He said at least eight Asian companies have gone public in the past ten years, with some of them listing shares on US exchanges. The public offerings have made the companies flush with cash and market caps, making expansion into the US and Europe viable ventures for them. While saying his firm has no specific knowledge of coming deals, Schachter told Industry Gamers James Brightman that THQ and Take-Two represent the most likely public company acquisition targets. He said that THQ has already partnered with Chinese game company Shanda Games to distribute products in Asia. But he added that THQ’s reliance on licensed games brings complexity to a buyout. He thinks Take-Two is the more viable target given its slate of strong IP, including Grand Theft Auto, Max Payne and BioShock, and management who has experience in Japan and seems generally more open to a deal. Scachter added that buyouts of Western social game makers by Asian companies with experience in running browser-based games is another area to watch. Read more at Industry Gamers.
THQ, Take-Two Ripe For Asian Buyouts, Says Analyst
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