THQ stock jumps on takeover rumours
Publisher's share price rises 12.5% yesterday - although analyst scotches deal talk
Shares in UFC 2009 publisher THQ rose by over 12.5 per cent in trading yesterday as rumours abounded over a possible takeover bid for the company - but while investors may have gotten carried away, analysts remain cool on the issue.
The company's stock went up 83 cents to USD 7.46 by the end of trading, with another half per cent gain in after hours - the first time the price has been above the USD 7.50 mark since July.
No specific potential buyer has been named in the latest speculation, but MKM Partners' Eric Handler noted such rumours over THQ's future were commonplace, and that a "major media company" had been mooted, according to a Forbes report.
Despite that, he wasn't impressed by the rumours, and thinks a bid in the short term is unlikely: "[The] company still has a very high percentage of licensed titles and is just beginning to rebuild its wholly owned IP portfolio," he wrote.
THQ's share price has trebled since it's lowest point in February this year, having undergone an extensive staff and product trimming process, and has been buoyed by the success of UFC 2009 and Red Faction: Guerilla.