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EA approaches Take-Two shareholders in takeover bid

Electronic Arts, clearly not taking “no” for an answer, has upped its efforts to acquire rival games company Take-Two Interactive, publisher of BioShock and the Grand Theft Auto series. With no headway made in negotiations with Take-Two management, EA is now going directly to the shareholders with intent to purchase all currently outstanding shares of common stock of TTWO.

EA is offering $26 cash per share, a figure that it has previously offered Take-Two management without success, with a total cash deal of $2 billion in the case of a complete buyout.

“This is a great opportunity for Take-Two shareholders. We believe Take-Two investors will see our tender offer as the best way to maximize the value of their investment in Take-Two. This tender offer provides a clear process to complete the proposed transaction,” declared EA CEO John Riccitiello.

EA states that the offer represents a 64 percent premium over Take-Two stock price on February 15, but now the $26 bid sits at around 4.4 percent above the current price. The tender offer is scheduled to expire April 11, 2008, unless the tender offer is extended. The release of Take-Two’s largest title of 2008, Grand Theft Auto 4, will be hitting stores two weeks after the close of EA’s offer.

Riccitiello added, “For EA shareholders, the combination would add additional intellectual properties to our already strong portfolio and welcome Take-Two's talented creative teams to the great development organization we've built at EA.”

Take-Two Interactive’s board of directors, intent on retaining control of the company, issued a notice to its shareholders shortly after EA’s bid, urging them not to accept.

“The Board of Directors of Take-Two Interactive Software, Inc. today recommended that Take-Two stockholders take no action at this time in response to the announcement by Electronic Arts Inc. that it has made an unsolicited conditional tender offer to acquire all of Take-Two's outstanding shares of common stock for $26 per share in cash,” read the release.

Take-Two added that it would re-examine the offer once again. “Consistent with its fiduciary duties, and in consultation with its independent financial and legal advisors, Take-Two's Board will review and consider EA's offer, and within 10 business days, will advise Take-Two's stockholders of the Board's position regarding the offer as well as its reasons for that position.”

This marks the second time EA has readied $2 billion in hopes of acquiring Take-Two Interactive. In February, EA made an offer of $25 per share, eventually upping it to $26, only to be rejected by Take-Two’s board.

Take-Two’s public statement at the time was, “After careful evaluation, the Board has determined that EA's proposal substantially undervalues Take-Two’s robust and enviable stable of game franchises, exceptional creative talent and strong consumer loyalty. We believe EA's unsolicited offer is highly opportunistic and is attempting to take advantage of our upcoming release of Grand Theft Auto IV, one of the most valuable and durable franchises in the industry.”

Shares of Take-Two jumped immediately following EA’s offer last month, going from $17 to the most recent trading price of $25.63.



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EA Haters...
By Sandok on 3/14/2008 4:06:31 AM , Rating: 1
I definately understand why some people hate EA (hell I haven't bought an EA Sports game in eons) but they DO make some pretty darn nice games.

SSX anyone? A great title for the PS2.
Army of Two? A more recent and fun title.
Need for Speed Most Wanted? My favorite NFS of all time.
Crysis? A good, fun and innovative FPS with non-linearity overload.

Sure they've ruined some games (C&C a bit, but I liked Generals and the latest Tiberium) so why do people act as if they're Hitler reincarnated?

There is WAY worse out there in the gaming world (KOEI and their stupid reptitive ugly Dynasty Warriors... Ugh...)




RE: EA Haters...
By otispunkmeyer on 3/14/2008 5:20:12 AM , Rating: 2
wasnt Crtsis made by Crytek and then taken over by EA right toward the end of the development?

i hve to agree on NFS:MW but it ends there really. all the ones since havent been too good and neither have the ones before. (except NFS 2 Hot pursuit)

it is their sports games that suck.. how they thought they could make a crummy engine and then ask what basically amounts to a £40 subscription every year when they simply update the car/driver/athlete roster i dont know.

i bought a NASCAR game off EA and i think i dropped it within about 5minutes of playing becuase it had Nothing on Papyrus's efforts such as NASCAR Racing 4


RE: EA Haters...
By Martimus on 3/14/2008 12:57:49 PM , Rating: 2
Crysis was developed by Crytek, it is just published by EA. EA really has nothing to do with the game, other than putting it in a box and making sure you can get it at the store (and probably advertising as well).


RE: EA Haters...
By sirius4k on 3/14/2008 5:24:26 AM , Rating: 3
Well.. some people like the real gaming experience.. on PC.
Don't know much about console games, but they totally fuc**d up C&C. Well.. NFS.. it isn't much, but it just might be the only good thing EA has ever made.

And I'm one of the few who actually didn't like Crysis :P

EA has a tendency to crapify everything it touches (takes over).. so.. that just might be the reason, why gamers hate EA.


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