Well, EA won't be buying THQ because of the overlap, etc. And the rest of the industry independents aren't big enough (though I suppose THQ could merge with ATVI or MWY). But for companies like Disney, Microsoft, Mattel, and Hasbro, THQ makes sense. Even Viacom, I suppose. As Vic says, it would be accretive and allow these media or toy companies to get further into the game business. Let Farrell run the whole thing. If you're a company like Disney or Viacom, why not keep all the profits from videogames based on your properties? If you're a toy company you need to keep expanding in video games because the toy industry is expected to grow 4% vs. 20% for the game business.
With THQ you have serious revenue streams that are coming into good focus. WWF for ten years, Rugrats for three or four, BASS and bowling, etc. for years. GameFX technology. And the Japanese "import" business. Oh yeah, a huge Gameboy presence on that surging platform.
This company is only going to get more expensive so I'd think a bigger company should snap it up. Especially before it runs up over the next six to eight months.
A $50 buyout would, um, make my year. And there are plenty of other stocks to invest in. Hell, I wouldn't be surprised if AKLM has the same pct. gain as THQ over the rest of the year. Of course AKLM has been hammered this year but still, one can always find stocks like that.
Anyway, $28 sometime next week.
Marc |
