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EA propose to Take 2.......for $2 Billion!

Fandango

By Fandango
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Fandango Newbie

Fandango

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( Wasn't sure where to put this, so feel free to move it or close it if its irrelevant :indeed: )

 

http://biz.yahoo.com/bw/080224/20080224005062.html?.v=1

 

 

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Electronic Arts Inc. (“EA”) (NASDAQ: ERTS - News) today announced that it has proposed to acquire Take-Two Interactive Software, Inc. (“Take-Two”) (NASDAQ: TTWO - News) in an all-cash merger valued at approximately $2.0 billion.

 

EA’s proposal of $26 per share in cash represents a premium of 64 percent over Take-Two’s closing stock price on Feb. 15th, the last trading day before EA sent its revised proposal to Take-Two, and a 63 percent premium over Take-Two’s 30-day trailing average price over the thirty trading days ending on that date.

 

EA’s proposal was contained in a letter sent on Feb. 19th by EA Chief Executive Officer John Riccitiello to Strauss Zelnick, Executive Chairman of the Board of Directors of Take-Two. The Take-Two Board’s subsequent rejection of the EA proposal led to EA’s decision to release the letter and bring its proposal to the attention of all Take-Two shareholders.

 

Mr. Riccitiello said today: “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.”

 

The EA letter warned that further Take-Two delay in accepting EA’s proposal could prevent Take-Two’s shareholders and other constituents from realizing its benefits. “There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today,” Mr. Riccitiello wrote. The letter added that timely completion of the proposed transaction would allow EA’s strong publishing and distribution network to positively impact the ongoing post-launch sales of GTA IV and support the new Take-Two titles scheduled for launch later in the year and during the holiday selling season.

 

As noted in EA’s Feb. 19th letter, EA’s proposal is not conditioned on any financing requirement. It is, however, subject to certain customary conditions as set forth in the letter. EA’s $26 per share proposal is based on the current equity capitalization of Take-Two. Although EA indicated in the letter that its proposal was subject to negotiations commencing by Feb. 22nd, EA intends to keep its proposal open for the present to give Take-Two’s shareholders and Board of Directors further time to consider it.

 

 

 

 

 

Woah..........really hope this doesn't happen, to be honest I don't even think Take 2 are worth this much, and I would prefer to see them stay independent really :(

Guest Stefkov

Guest Stefkov

Posted
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Just seen it on Kotaku.

'In short, they think EA's undervaluing Take-Two's worth'

 

 

...:blank:

darksnowman Enthusiast

darksnowman

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Yeah I seen that. There I thought maybe they had rejected it for a more noble reason such as wanting to remain independant of EA or something, but no. Its all about the money. ¬_¬

 

Well if its only a matter of EA naming the right price then they probably will do just that.

Aimless Newbie

Aimless

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Yeah, I wish they'd make new things like Army of Two, Dead Space or Spore.

 

I find EA hate very outdated as they've made a great deal of changes in recent years. They're certainly no worse than Ubisoft or Activision; I'd say the latter two are far guiltier of sequel pushing with the DS/Wii shovelware and infinite Guitar Hero iterations.

McPhee Newbie

McPhee

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EA are pretty good. They only really push yearly updates on sports titles, an area where the fans actually want yearly updates.

 

Compare that to a CoD and GH every year...

Dyson Newbie

Dyson

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Posted
Yeah, I wish they'd make new things like Army of Two, Dead Space or Spore.

 

I find EA hate very outdated as they've made a great deal of changes in recent years. They're certainly no worse than Ubisoft or Activision; I'd say the latter two are far guiltier of sequel pushing with the DS/Wii shovelware and infinite Guitar Hero iterations.

 

Indeed.

 

Although there are only 4 GH games..

The fish Newbie

The fish

Posted
Posted
EA are pretty good. They only really push yearly updates on sports titles, an area where the fans actually want yearly updates.

 

Compare that to a CoD and GH every year...

 

The odd numbered CoD's are not Call Of Duty. They are Cash On Demand for Activision... :indeed:

 

Also, Gaggle - both you're posts are exactly what I had in mind of saying. Great minds, and all that... :D

Wesley Newbie

Wesley

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I don't understand. John Riccitiello spoke only a few weeks ago regarding company buy-outs. Saying they're not really that good for business. And some bloke from EA, maybe John again, spoke about how when EA bought Westwood, Bullfrog and some other company they didn't do a good job of handling it.

 

And then they go do this.

Aimless Newbie

Aimless

Posted
Posted
Although there are only 4 GH games..

For now. Give it a little time.

 

Anyway, I believe Riccitiello's point was that some of their previous acquisitions had turned sour due to EA stripping away their independence. Going forward he sees Electronic Arts welcoming new studios into the fold as they have BioWare/Pandemic, offering a more hands-off approach and reaping the financial rewards of better games.

 

If EA do buy Take2 then I doubt Rockstar would really be affected. The 2K Sports people probably wouldn't be so lucky, though: it would be a bit odd for a publisher to back its only competition, and I can't imagine EA's sports division has that many openings.

Aalborg Newbie

Aalborg

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Posted

yes don't knock EA.. they released a cricket game some years ago which a friend of mine had to review.. now here we know about as much about cricket as an ant knows about making fire.. i laughed and laughed and laughed..

EA is evil and run by Jack Thomson.. soon they will put out games like "The good samaritan", "Cooking is fun", "wearing a tie is cool", "if your not with us your against us" and "Cleaning your room is rad"

Mundi Newbie

Mundi

Posted
Posted

EA is evil and run by Jack Thomson.. soon they will put out games like "The good samaritan", "Cooking is fun", "wearing a tie is cool", "if your not with us your against us" and "Cleaning your room is rad"

 

 

They already made those games, we call them "The Sims"

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