Grand Theft Auto IV Sales Soar

SAN FRANCISCO -- The first week of sales of video games publisher Take-Two's(TTWO) blockbuster Grand Theft Auto IV is on track with sales expectations but will have little impact on the $2-billion buyout offer for the company.

Take-Two said Wednesday it sold approximately 6 million copies of Grand Theft Auto IV in the first week of its release with an estimated retail value of about $500 million.

That is exactly in line with expectations, say three analysts, and is unlikely to affect industry leader Electronic Arts'(ERTS) $2 billion, or $27.74-a- share, bid for Take-Two.

"Six million units is exactly in line with our expectations," says Arvind Bhatia, an analyst with Sterne, Agee & Leach. "It's a great opening for the game but it is not surprising."

"The $500 million in revenue is a little bit higher than expected but that could be because of greater sales of the special edition pack, which is priced higher, or the mix of domestic to international sales," says Bhatia. Sterne, Agee & Leach does not own shares or have an investment banking relationship with Take-Two.

Grand Theft Auto IV sold approximately 3.6 million units on its opening day with a retail value of approximately $310 million globally, said Take-Two.

Analyst Michael Pachter of Wedbush Morgan agrees that Grand Theft Auto IV sales are tracking in line with expectations.

That means EA may have made the right assumptions in its proposal for Take-Two. If anything, it strengthens EA's case that Take-Two becomes less valuable to it over time, say analysts.