Following the breaking news that EA has made a buyout proposal to publisher Take-Two, Wedbush Morgan Securities analyst Michael Pachter shared his thoughts (during a brunch at a yacht club, no less) with MTV's Stephen Totilo. Ultimately, Pachter believes it's a good deal for both EA and Take-Two.

"Take-Two is a company that hasn't made money in a couple of years. It doesn't have a lot of cash and I think it was a stretch to earn the money they earned this year... They [ultimately] earned about a dollar a share this year. EA is offering them 26 times that. It would take a lot of time to turn that around," Pachter said. "They make a lot of money when they make Grand Theft Auto and they don't when they don't make GTA. Their delusion that they will compete in sports — and the reason I say delusion is because EA's done everything they can to put the squeeze on them — ultimately I think Take-Two would have to get out of that business."

Pachter thinks that Take-Two won't be able to resist an EA buyout when it's all said and done. "I think EA is saying, '$25 was a fair offer. We'll go to $26 but we're not going any higher.' I think the vast majority of Take-Two shareholders will jump at this. I don't see a white knight. I don't think Take-Two will be able to do anything to block this," he stated.

Interestingly, even if EA gets its way, the leading publisher may have to negotiate separate terms with the mighty Rockstar studio, Pachter said: "GTA is clearly a wonderful asset, worth a ton. The problem is that to make GTA the way it has in the past you need to engage the Rockstar North guys. They're not going to want the same deal as what they have now."