Author Topic: EA / Take-Two Merger  (Read 3115 times)

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Offline Superman

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EA / Take-Two Merger
« on: August 19, 2008, 04:46:52 AM »
God I hate EA.  Leave my GTA alone.

Electronic Arts Inc. agreed to let Take-Two Interactive Software Inc.'s management make a presentation about its operations, after the videogame maker said it wouldn't extend its offer for Take-Two past a Monday night deadline.

The move comes six months after Take-Two rejected an unsolicited takeover offer from Electronic Arts for Take-Two, maker of the Grand Theft Auto videogame series. That led Electronic Arts to launch a tender offer for Take-Two, the latest extension of which ends Monday and will be allowed to expire.

The detente began Friday when Electronic Arts Chief Executive John Riccitiello called Take-Two Chairman Strauss Zelnick about Electronic Arts' offer. Following discussions over the weekend, Electronic Arts agreed to hear a presentation from Take-Two management.

In a letter dated Monday to Mr. Zelnick, Mr. Riccitiello wrote that Electronic Arts no longer believes it can integrate Take-Two ahead of this year's holiday season and "would require due diligence to support a transaction." He also noted that, "given the passage of time, we have to validate the assumptions used in the model to support our offer."

In a separate statement, Mr. Zelnick said Take-Two looks forward to showing Electronic Arts' board "the significant strides made by Take-Two since they (Electronic Arts) last undertook a detailed review of our business in early 2007."

Mr. Zelnick also reiterated Take-Two's opinion that the $25.74 a share offer made by Electronic Arts "undervalues Take-Two's franchise and financial performance."

Take-Two CEO Ben Feder added that Take-Two is "engaged in discussions with other parties."

The U.S. Federal Trade Commission is expected to rule on Electronic Arts' offer by Thursday. Should no other Take-Two bidder surface by then, and should the FTC approve its offer, Electronic Arts is widely expected to drop its bid, see if Take-Two shares tumble back to pre-bid levels, and then try again. Any subsequent deal would close quickly, given it would already have been cleared by the FTC.

Offline lanky

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Re: EA / Take-Two Merger
« Reply #1 on: August 19, 2008, 13:01:40 PM »
The U.S. Federal Trade Commission is expected to rule on Electronic Arts' offer by Thursday. Should no other Take-Two bidder surface by then, and should the FTC approve its offer, Electronic Arts is widely expected to drop its bid, see if Take-Two shares tumble back to pre-bid levels, and then try again. Any subsequent deal would close quickly, given it would already have been cleared by the FTC.
Very clever...
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Offline Ghandi

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Re: EA / Take-Two Merger
« Reply #2 on: August 22, 2008, 02:23:35 AM »
Well EA took the Need for Speed franchise and ruined it... I pray to God that the deal doesnt go ahead, because you know that they will fuck up GTA...

Offline Superman

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Re: EA / Take-Two Merger
« Reply #3 on: August 22, 2008, 03:32:28 AM »
Agreed.  Everything they touch turns to crap.

Offline lanky

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Re: EA / Take-Two Merger
« Reply #4 on: August 22, 2008, 11:37:37 AM »
EA have come up with some good games. Like ... um oh and ... err ... FAIL
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Re: EA / Take-Two Merger
« Reply #5 on: August 23, 2008, 03:53:35 AM »
Pretty sure EA is distributing Spore.

Offline lanky

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Re: EA / Take-Two Merger
« Reply #6 on: August 23, 2008, 16:08:10 PM »
True, but it will be the first decent one in some time. The last good EA game I played was on a Sega Megadrive...
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Re: EA / Take-Two Merger
« Reply #7 on: August 25, 2008, 11:29:14 AM »
Well, and I don't think you can go wrong with Maxis.