August 19, 2008 – 10:00 am
We were all convinced that it was a matter of time before EA acquired Take 2 and the video game industry would be one big conglomerate of mediocrity. The inevitable success of GTA IV made Take 2 that much more valuable and forced the shareholders to hold out as long as they could. It seems now as if EA is no longer interested and Take 2 chairman Strauss Zelnick could not be happier.
If this doesn’t work for E.A., then I guess it doesn’t work for them,” Mr. Zelnick said Monday in a phone interview. “I’m totally fine with that, and so are our shareholders.
Mr. Zelnick’s nonchalance may be part of a high-stakes tactic. The back and forth that has agonized investors for months is not yet over. The two companies agreed — in an exchange of carefully worded letters — to arrange a meeting to see whether there might yet be common ground for a friendlier merger discussion.
This could be some sandbagging at the highest level or maybe EA failed in their attempt. We must continue to wait on the fate of Take 2.
NYT via news tip from no stars.
Looks like things are moving along with the hostile takeover attempt by EA. They’ve gone ahead and secured a $1 billion loan from Morgan Stanley and others to help in the cost of buying out Take-Two.
I guess it’s inevitable at this point. What EA wants, EA gets. No more 2K Sports, more yearly sequels to games that don’t need them. I don’t see any way this is going to be good to gamers. Sure, it lines the pockets of the executives on both sides, but if it serves to hurt gamers in the long run, I don’t approve.
What do you think? Is Take-Two as we know it over?
As the inevitable acquisition of Take 2 studios from gaming giant EA draws ever closer, it seems that EA is not willing to wait for GTA IV to come and drive the stock price to a higher amount. The sales of GTA IV are projected to make Take 2’s quarter sales to reach at least 150 million which would make the company much more valuable than it currently is. If I know this, you can bet the Finance Dept over at EA knows it. They have given a soft deadline of 4/18, a full week before GTA IV is released to hear a “Yes” on the merger. Take 2 has successfully stonewalled EA on every attempt so far to buy the lucrative studio so there is no reason to think anyone will blink before the killer app is released.
[via Business Week]
Her name is Princess Omala. You killed my father, prepare to die. Princess Bride for the fucking win.
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]
