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Technology Stocks : GTIS - Will it be a Phoenix or not ? -- Ignore unavailable to you. Want to Upgrade?

To: Scott Miller who wrote (2244)	7/19/1999 1:14:00 PM
From: Bonzo	Read Replies (2) \| Respond to of 2319

Subject: THQ Takeover?-Nah! Date: Mon, 19 July 1999 01:04 PM EDT From: Bonzo3 Message-id: <19990719130432.23515.00000064@ng-fn1.aol.com> I'm not familiar with flyonthewall.com and what level of credibility this online rumor site has, but I seriously question whether Hasbro or Mattel would be interested in buying THQ - at this time. GTIS has put themselves in play in almost the same manner Microprose did one year ago. The successful bidder then, of course, was Hasbro Interactive. GTIS has to sell to survive. They have quality studios, quality games and catalog brands but a lousy balance sheet and insufficient cash to fuel any growth. HAS could probably take them out for as little as $5.50-6.00/share plus assumption of debt ($550-600M total). Almost all previous industry consolidations were done with troubled game companies. Can anyone name (public) one that wasn't? I believe Hasbro would be more interested in GTIS before THQ. I believe Hasbro would covet Humongous Ent. in particular. Farrell's mindset has been one of being the acquisitor and not the acquisitee (sic). My feeling is he wants to stay independent and rapidly grow the international business while continuing to strategically acquire small studios. In 2-3 years THQ will be an industry powerhouse, perhaps second only to EA. By then, Farrell would have truly made his mark and could ride off into the sunset with a bundle. All imo. btw, I maintain long positions in both GTIS and THQI with a much larger position in THQI.

To: Scott Miller who wrote (2244)	7/19/1999 5:09:00 PM
From: RJC2006	Read Replies (1) \| Respond to of 2319

One has to give you Wizard Works but really it's a one-hit wonder. They got lucky with Deer Hunter and that's about it. Reflections is the same way. OddWorld is lucky if they even break even. Ten million dollars spent on promotion for the first release. Yes, if you are going to release a game with numerous sequels it's probably best to promote the first installment heavily. However, I think about where that talent could have been placed rather than on a side scrolling game about an annoying little character that most people would be glad to see end up a meat by-product. Perhaps I should have rephrased things better. The Humongous purchase was a good one but over the last couple to three years, GT's acquisitions have been nothing to crow about. We do agree completely on GT's line-up of games. Few companies have been so situated to have released such crap as GT. Interplay takes a close second IMHO but they always seem to have plenty that do well to make up for it. I also cannot forget losing Quake. That was a big blow even though management didn't want to fess up to it. Not that it matters much now because with Unreal Tournament and Team Fortress 2 sure to release before long, Quake : Arena will just be another blip on the radar screen. I have been saying on this board for over two years that the trick to making potentially big bucks in this market is through cross-marketing. Your guy Duke Nukem should have been taken more advantage of three years ago although I am not suggesting that it is beyond too late for it to still be utilized successfully. The action figures were a start but I am not sure that really is that big of a deal. As for franchising, to me the clearest example of what to do is demonstrated by 3DO with their Might and Magic VII/Heroes of Might and Magic series. Take the characters and cross-pollinate them throughout different genres. I only brought up the Penthouse issue because regardless of what you may think it really did not help their image. Alot of kids play these games and you know it. I remember the download site for it was available and there was almost nil in the way of download restriction. Just jump aboard and get your free nudity here. In the long run , the whole thing was destined to be a marketing nightmare and GT could have done with out.