According to The Information, a technology and business news provider, there has been speculation that Take-Two Interactive (TTWO) may be considering a movie based on their Grand Theft Auto game, a franchise which has experienced wild success in the last decade. It has also been reported Activision may be in the process of forming an internal movie studio, and with the success of games-turned-movies like Resident Evil, the game-maker might as well get into the movie business for itself. Activsion also owns Blizzard, and that could be the real reason for the creation of this studio, attempting to ride the wave of success experienced by the Warcraft and Diablo franchises.
Whether or not this project goes through is another matter. CEO Bobby Kotick is still in talks to get the necessary executive talent, and Kotick himself has been worried that movies might burn-out customers from the franchises. Activision certainly isn’t commenting on the rumor at this stage. However, the company might be in a bind. Call of Duty sales have been steadily dropping, and there’s no guarantee that Skylanders will remain a cash cow forever. Mike Hickey, analyst at Benchmark, indicates that Activision’s alignment may also be related in part to its interest in exploring a tie-up. He believes acquiring Take-Two would be a “no brainer” for Activision, and has Buy ratings on both stocks.