So what the shit is a hostile takeover? Allow me to retort. A hostile takeover is when a company receives an offer to be purchased and the Board of Directors rejects it. The party making the offer, EA, can bypass the Board and appeal to the shareholders. The shareholders can then sell their stock if they wish. Usually the buying price exceeds the present market price. If 51% of the stock is sold, then EA would ipso facto own the company.
So here are the highlights. The 2 Billion dollar offer would have meant that EA would pay $26.00 a share. The current price per share on the day of the offer, Feb 18, was just under $16.00. Needless to say, anyone with major holdings would almost double their current investment. Speculation says that Take 2 is waiting for GTA IV to come out because the projected sales of over 200 million for that quarter will absolutely drive the stock price up considerably. Its tough to say right now, but with the amount of money being thrown around and the present state of the economy, people might dump their stock. One caveat to add is in many companies, the Board members hold a significant amount of stock. The battle of wits has begun.
[via next-gen biz]
This is bad news for Take 2 and the consumer
I hate EA.
The title says EA’s big to acquire 2K, isn’t it supposed to be Take 2?
Where do you see 2k?
I have that warning label on my boxers lol.
Someone edited it, you sneaky bastids.