The biggest merger that has not happened yet still has much life left as EA extended their deadline which expired last week to another 30 days. No one is surprised. EA is still pursuing the reluctant studio who is still waiting to sell as GTA IV makes history. The announcement quotes Senior VP Owen Mahoney:
Extending our offer will allow the FTC review process to continue. EA’s offer price remains unchanged at $25.74 per share and our offer is still subject to conditions that include regulatory approval. As stated earlier, we retain the right to terminate the offer if the conditions are not satisfied.
EA is no longer the only interested buyer out there. Take Two still feels the offer is inadequate and is talking to other people. Now, this could be a move to drive the price up or maybe they really are looking elsewhere. Take Two had this to say:
This is the same highly conditional proposal that EA offered Take-Two stockholders on March 13, 2008, which our Board of Directors thoroughly reviewed and unanimously determined to be inadequate and contrary to the best interests of Take-Two’s stockholders. As such, the recommendation of our Board of Directors that stockholders not tender their shares to EA remains unchanged. The Board is committed to maximizing stockholder value and is exploring all strategic alternatives to do so. We said we were willing to begin formal discussions with interested parties on April 30, following the launch of Grand Theft Auto IV, and we have in fact begun that process. We are confident in the significant growth potential of Take-Two and in the unique value of our business given our strong position in this growing and dynamic industry.”
Needless to say, you might want to buy some Take Two stock. Someone is going to pay out the ass for it.
Midnight tonight was the deadline for Take 2 to accept the EA takeover bid. EA wants the company before GTA IV releases because it will mean a much lower price. They would also reap the benefits of the vast income that GTA IV will bring in. Take 2, obviously not run by fucking morons, did not balk at the offer.
The tender offer was previously set to expire at 11:59 p.m., EDT, on April 18. The revised offer will expire on May 16, a full two-and-a half weeks after the release of Grand Theft Auto IV.
EA continues to believe that the offer price is full and fair, and that a transaction between Take-Two and EA is the most compelling combination financially, strategically and operationally for all parties,” the company said in a statement.
This is one of those topics that I get tired of writing about and you are probably tired of reading about because these multi-billion dollar pissing contests keeps going on and on. The most predictable things have and will happen. EA will buy Take 2. They won’t do so until GTA IV makes a fuck ton of money. Almost all the video games will be controlled by a company who sucks tremendous balls at DLC. If EA acquires Bungie and/or Epic, I fucking quit.
[via CVG]
Not a week goes by these days without a software company merging with another. These are usually for the better. The mergers will increase revenue and therefore hope to design better games. This merger to me sort of does not make too much sense. Take 2 is on the brink of being bought by EA. Mad Doc software last few Xbox 360 contributions were not all that great. They made that god awful Star Trek: Legacy game. They also completely botched bringing Bully to the Xbox 360. As you can see, my faith in Mad Doc Software is not at an all time high. Furthermore, it seems like a way to help Take 2 software boost their companies value before the inevitable EA takeover sometime after GTA IV brings in about 100 million dollars.
Here is a small, but important update on the proposed EA takeover of Take 2. The board of directors has made a recommendation that the $26 a share buyout price is not enough. They have also asked all their shareholders to hold off on selling until after the release of GTA IV. Take 2 bumped up a meeting to discuss such matters to April 17. This date is only weeks away from the April 29th release date. By then the company will have a very good idea on how much they anticipate the company will be worth after the game sells millions. Here is the official statement from Take 2 on the recent proceedings.
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]
February 24, 2008 – 5:00 pm
Yes, thats billion with a B. Take Two software, who is responsible for a little known game called Grand Theft Auto, received an offer from software big swingin’ dick EA for a cool 2 billion dollar buyout. With software mergers all the rave right now, you’d think this would have gone through. Nope. When someone offers you 2 billion and you say no, you better have a backup plan. Is Take Two holding out for more? Maybe. The offer is still on the table though. Click the link below to read the letter EA sent to Take Two after they found out the news of the non sale.
[via Gameindustrybiz]
January 11, 2008 – 1:17 pm
Another major studio is spreading its wings. The latest move to occur is the developing giant Ubisoft, has acquired Digital Kids, a Japanese studio which has worked with Ubisoft before. Here is a statement from the press release we just received:
Today, Ubisoft, one of the world’s largest video game publishers, announces that it has completed the previously announced acquisition of Japanese video game development studio Digital Kids.
Established in 1996, with offices in Nagoya and Osaka, Digital Kids currently has a team of 20 developers specialized in games for the Nintendo DS. The studio has worked regularly for a number of Japanese publishers and has developed several successful titles for Ubisoft’s Petz line of games, including Hamsterz™ Life.
January 8, 2008 – 6:16 pm
The trend of the large developers picking up the smaller one is continuing. In the past few months, notable studios have been acquired by larger and more lucrative dev teams. This is the best thing that could happen to the gaming industry. So many of these smaller devs have great ideas and talented staff by often lack the capital to make the games worth playing. The games seem like they could have been awesome, but end up being pretty beat. A notable title hear is Mafia, a halfway decent gangster game that was all in all pretty good, but could have been great. Now, they have all the C.R.E.A.M they need. Dollar Dollar bill y’all. Hit the jump for the official press release.
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December 3, 2007 – 11:38 am
Didn’t expect this one. In a press release, Activision and Vivendi announced plans to merge to form Activision Blizzard. Just think, Call of Duty, Guitar Hero, Starcraft, and World of Warcraft all under on roof.
Rene Penisson, Member of the Management Board of Vivendi and current Chairman of Vivendi Games, added: “We are very confident that by combining forces, Activision Blizzard will set the highest standards in quality, reputation and profitability, and will bring together the best creative teams in the industry. The combination of this unique product portfolio with highly professional employees gives us great confidence in the growth prospects for Activision Blizzard.”
Let’s just hope that quality thing sticks. It’s all about the best games, and I think both Activision and Vivendi intend on keeping it that way.
Read More »
February 19, 2007 – 2:59 pm
Yeah, it’s been a rumor that comes up almost every week. But this time, it looks like it’s real. The NY Post, while not being the most reliable source, reported this morning that the two sides talked all weekend and will announce the merger today. ABC News is now “confirming” the merger as well.
While this is good news for shareholders, I don’t see how this is good news for consumers at all. Will current subscribers have to buy all new radios? What will happen to all the on-air personalities from both companies? Only time will tell, but I’m personally not too excited about this merger. We all see what happens when there’s no competition in the market ( :cough: EA Sports :cough: ).
[Update] Well, it’s official. The merger was announced today (press release here). There’s a webcast at 8:30am tomorrow to discuss things. I’m really hoping this isn’t going to have a negative impact on subscribers, but I’m very skeptical.
