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EA makes bid to buy Take 2


Hatchetforce
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http://www.next-gen.biz/index.php?option=c...85&Itemid=2

Electronic Arts today announced that it has proposed to acquire Take-Two in an all-cash deal valued at approximately $2.0 billion.

The news follows weeks of rumors that Take-Two would be the subject o an acquisition bid, with Viacom touted as a possible suitor at $1.5 billion. EA has, it turns out, attempted to buy Take-Two for $25 a share, and, after being rebuffed, has upped the ante by a buck. But the firm has warned shareholders that they won't get a better price.

EA's proposal of $26 per share in cash represents a premium of 64 percent over Take-Two's closing stock price prior to the company's bid.

EA Chief Executive Officer John Riccitiello said "Our all-cash proposal is a unique opportunity for Take-Two shareholders to realize immediate value at a substantial premium, while creating long-term value for EA shareholders. Take-Two's game designers would also benefit from EA's financial resources, stable, game-focused management team, and strong global publishing capabilities."

He urged Take-Two shareholders to accept the bid, "There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today."

EA had warned Take-Two's bosses that if they refused to engage in negotiations, the company would go public with its bid. Today, EA made good on that threat.

Take-Two's assets include Grand Theft Auto 4, which ought to be the biggest game of 2008. EA says it wants to get the deal done before the game's release in order to avoid disruption.

The full text of EA's letter to Take-Two at link above

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Take-Two's assets include Grand Theft Auto 4, which ought to be the biggest game of 2008. EA says it wants to get the deal done before the game's release in order to avoid disruption.

Correction:

Take-Two's assets include Grand Theft Auto 4, which ought to be the biggest game of 2008. EA says it wants to get the deal done before the game's release in order to get our name on the box.

:P

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Ha ha, that's about right. I am not an anti-EA person. But I don't see how this would be good for the industry.

Ars Techinca is a pretty good site and here is what they had to say:

http://arstechnica.com/news.ars/post/20080...rts-gaming.html

Lack of competition serves no one on the consumer end.

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  • 2 weeks later...

EA launches hostile offer for Take-Two

THE world's biggest computer game maker, Electronic Arts (EA), has launched a hostile takeover bid for rival Take-Two, valuing it at $US2 billion ($2.15 billion).

http://www.news.com.au/technology/story/0,...5014239,00.html

[Moved to Console forum & merged with existing thread]

Edited by Pave Low
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Ether way i hate to see EA get there hands on any game

Very true, even though I don’t use Take Two games, it’s sad to know that a profitable well to do company will possibly sell out to its main rival.

I guess it’s all in the name of business; it will be a win, win, situation for both company’s, one will receive a small fortune for its idea and the other will eliminate a competitor.

The only looser will be the gamer; competition brings the best out of us, without that incentive for quality will suffer.

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