EA to buy Take Two?! aka. GTA peeps

[Kraig]

Perhaps a hostile take over? You never know!

Electronic Arts Audacious Bid to Buy Take-Two : Next Generation - Interactive Entertainment Today, Video Game and Industry News - Home of Edge Online

Also... Phil Harrison is leaving Sony - BREAKING: PHIL HARRISON QUITS SONY : Next Generation - Interactive Entertainment Today, Video Game and Industry News - Home of Edge Online

[rawb]

WILL STAND INSIDE FIRAXIS WITH HIGH POWERED RIFLE, PICKING OFF ANY ADVANCING EA EMPLOYEES l

[ppcock]

Back when I was working at EA and the news dropped that EA would be picking up criterion (burnout franchise), We just assumed it was nothing big, EA would have their hands in the company.. Luckily, nothing disrupted the creativity process of criterion.

But later in the smoke pit, we knew EA was going to start picking up companies. Although take-two is a superior company. There was nothing wrong with it, it was going to make huge cash and GTA IV is going to be a huge success.

My big beef with the purchase.. if EA decides to invade take-two, fire everyone and then do their own GTA games. That's when people will get pissy.
Other than sports games, nothing good comes out of EA anymore and their sports arent even done by EA. Black box does Hockey and driving, tiburon does everything else like football. the only thing EAC makes is basketball and lately, those games having been sucking major ass.

I think EA is doing dead space, the trailers look excellent.. but, the game could suck badly.

[dj_soo]

i guess they're desperate to regain that #1 spot from Activition/Blizz/Vivendi. I can see them trying to up their stake in ubisoft as well in the next couple years as well. Such a shame actually.

The nice part is thanks to things like the Live Arcade, and the Sony store, there actually seem to be inexpensive venues for smaller developers to actually take risks and be creative with their products which seems to be sparking an indie-developer renaissance.

[ppcock]

Originally Posted by dj_soo

i guess they're desperate to regain that #1 spot from Activition/Blizz/Vivendi. I can see them trying to up their stake in ubisoft as well in the next couple years as well. Such a shame actually.

The nice part is thanks to things like the Live Arcade, and the Sony store, there actually seem to be inexpensive venues for smaller developers to actually take risks and be creative with their products which seems to be sparking an indie-developer renaissance.

I agree, small time developers like slick entertainment that just created the game N+. Got high ratings all around I hope someone picks up these guys.

I dont think EA would buy ubisoft, there's too much going with that company. Although, if they do. There's only two companies competing Vivendi and EA.
bad or good?

[dj_soo]

EA already owns like a 20% stake in ubisoft and made allusions to trying to purchase a controlling share a couple years back.

[ppcock]

Take-Two Rejects EA's $2 Billion Offer


Publisher response to purchase offer is quick and to the point.


by Jeremy Dunham

February 24, 2008 - Only hours after Electronic Arts proposed a $26/ share (approximately $2 billion in total) offer to acquire Take-Two Interactive, Take-Two officials have responded with an absolute "No."

According to Reuters, Take Two has said that the offer was at a significant discount to its peers and that it came at "absolutely the wrong time."

Additionally, Take-Two called the bid "highly opportunistic" on the heels of the upcoming release of Grand Theft Auto IV on April 29.

Take-Two has offered to enter discussions with EA the day after GTA IV's release, on April 30.



pwnd

[cubed]

logic has no influence in marty's life.

[rawb]

SERIOUSLY U FUCKERS DONT TOUCH MY CIVILIZATION SERIES I WILL FUCK YOU UP l

[dj_soo]

yea, i read that last night too.

Basically Take Two - and especially Rockstar has been in shambles since the Hot Coffee scandal (among others) and their stock has plummeted since. GTA IV was their one beacon of hope to right the sinking ship and it sounds like Take Two want to wait to see how the numbers do and then likely try to sell to EA for an inflated price. So one way or another, EA may control Take Two within a little while...

[Carrie]

grand theft skate!

[omega_image]

i doubt EA will purchase Take Two at an inflated price. If anything, the deal will go through once the stock has settled.

[dj_soo]

well, EA is low-balling hoping to grab the company at a low price to cash in on the GTA launch while TT is wanting to wait till the release, see it's stock price rebound, and try to force EA to pay a premium. I'm sure they'll eventually meet in the middle, but according to that press release, it seems Take Two is not opposed to selling a majority stake to EA so it's likely that we may see EA purchase Take Two within a year... or Actiblizevendi could make a counter offer and things could get interesting :).

[Kraig]

Two words already stated... hostile takeover.

I think it will happen - it's just a question of when and for how much.

[Mr Ektion]

... Take Two and Rockstar are not in shambles.

[rawb]

RED DEAD REVOLVER 2: MORE REVOLVING LOOKS AWESOME, GJ R* l

[dj_soo]

i wouldn't say they've been in a healthy/good situation. They've still never fully recovered from hot coffee and the subsequent stock back-dating scandal.

They were never in too much danger of folding, but their stock has plummeted since 2005 - prime for a takeover bid like this.

[Kraig]

HA! -- Told ya this would happen...

EA's Take-Two Bid Goes Hostile

EA has taken its battle to acquire Take-Two directly to the Grand Theft Auto publisher's shareholders with a tender offer to purchase all outstanding shares of common stock for $26 each.

ImageThe cash offer values the publisher at $2 billion, a sum Take-Two turned down last month following an unsolicited bid from EA. At the time the company labeled the offer inadequate and ill-timed.

On March 12, the last full trading day before the announcement of the tender offer, the last reported sales price of Take-Two common stock reported on the Nasdaq Global Select Market was $24.91 per share.

On February 15, 2008, the last trading day before Electronic Arts sent its original proposal to Take-Two to acquire the publisher, at $26.00 per share, the last reported sales price of Take-Two common stock reported on the Nasdaq was $15.83 per share.

"This is a great opportunity for Take-Two shareholders," said EA CEO John Riccitiello. "We believe Take-Two investors will see our tender offer as the best way to maximize the value of their investment in Take-Two. This tender offer provides a clear process to complete the proposed transaction. For EA shareholders, the combination would add additional intellectual properties to our already strong portfolio and welcome Take-Two's talented creative teams to the great development organization we've built at EA."

Within ten business days Take-Two is required by law to publish, send or give to shareholders (and file with the Securities and Exchange Commission), a statement as to whether it recommends acceptance or rejection of the latest offer, that it has no opinion with respect to the offer or that it is unable to take a position with respect to the offer.

Unless extended the EA tender offer is set to expire on April 11 at midnight, New York City time, a day after Take-Two has scheduled its annual meeting of shareholders.

Since EA launched its February bid Take-Two said that other parties had approached it regarding a merger, but that it hadn’t entered into negotiations with other companies about a deal.

Take-Two is due to launch Grand Theft Auto IV, the latest in the 65 million unit selling franchise, on April 29. It is one of the most important franchises in the videogame industry and the jewel in the publisher’s crown which EA craves most. EA’s CFO recently spoke of Take-Two’s creative staff as diamonds.

[dj_soo]

good god someone counter-offer.

[Drazkers]

doesn't look good look good at all

[Cdn_Brdr]

There's a lot of speculation at this point about EA's possible intentions over the next few years. They are buying up studio after studio and folding them into their horrible umbrella. There's a lot of buzz saying that they're doing this with possible intentions of making their own console.

More money for the money whores!

[dj_soo]

the question is whether the majority of the shareholders think that GTA will bump the stock above $26/share and refuse to sell.

The game industry is rapidly turning into hollywood - but with even less big studios calling the shots, no unions to protect the workers, and more insipid marketing taking the place of creativity.

awesome.

[Mr Ektion]

it might be because I don't catch your guys' tone.. but you make it sound like T2 or Rockstar are desperate at the moment. IMO, if they sold for $10 more per share it would show a lack of confidence in T2's own product.

GTA4 looks amazing and it's getting hyped up. Don't forget about midnight club (a very popular street racing game) which is launching on a next gen console for the first time. Red Dead Revolver 2, i'm not too interested in this one but i'm sure it'll sell. And how about Bully: Scholarship Edition? The game is acclaimed by the people who've played it, and scorn by those who haven't. Controversy is rockstar's sail ship and i think this is going to be a verrry big year for them.

But to be the devil's advocate. Having EA as a strong publisher with a HUGE scope for distribution would be a big bonus. And there is a lot of propaganda right now, so it'll be interesting to see what happens.

[Kraig]

Lawrence - it's pretty much a case of not IF EA will acquire Take Two, but WHEN.

[dj_soo]

I think it would be absolutely terrible if EA acquires take two. And it has nothing to do with GTA. Take Two offers the only significant competition to EA in the sports game market (save for Konami and soccer). Basically the whole point of EA acquiring take two is so they can eliminate the 2k brand making EA the sole game-maker for officially licensed sports games (again, with the exception of soccer).

And we all know how monopolies really get companies to push the quality of their product.

Stockholders saw Take Two stock plummet severely in the last few years to the point that i'm sure many shareholders would be delighted to make a $10/share profit immediately. I don't think you actually realize how badly Take Two was (pardon the pun) rocked by the Hot Coffee scandal which included game recalls and fines to the ESRB. So absolutely, many of the shareholders have likely lost confidence in Take Two.

Again, for Take-Two, it's a matter of the execs convincing the shareholders that the launch of GTA4 will definitely push the stock above $26 which will be win/win for the current shareholders (either they get the stock boost from GTA or the price is pushed up and EA still wants to buy at an inflated price). You have to keep in mind that this is now a hostile takeover. Take Two management has nothing to do with it anymore other than trying to convince people not to sell.