Take-Two rejects EA acquisition proposal [update 1]

by Griffin McElroy { Feb 24th 2008 at 5:00PM }

Apparently, it didn't take them very long to consider Electronic Arts' somewhat hostile buyout proposal -- Take-Two's Board of Directors just responded to the offer with a press release of their own, stating that EA CEO John Riccitiello's proposal was "inadequate in multiple respects and not in the best interests of Take-Two's stockholders."

While EA's proposal listed Grand Theft Auto IV as a primary reason for the merger, as Riccitiello claimed EA could lend their help during the game's quickly approaching release, Strauss Zelnick, Take-Two's executive chairman, listed GTAIV as the primary reason why they wouldn't want to merge at this point in time, fully expecting to increase their overall value when the game hits store shelves come April 29.

Zelnick's laundry list of reasons why the buyout wouldn't benefit his company can be found on the press release. For now, let us rejoice in the postponement of the seemingly inevitable future where one superconglomerated gaming publisher/developer controls all game releases on the planet.

Update: MTV Multiplayer's Stephen Totilo just had a chat with industry guru Michael Pachter, who claims that this probably isn't the end of the ordeal, and that EA will eventually get their way -- though it might not happen for a while.

Tags: breakingnews, business, buyout, ea, electronicarts, merger, stocks, take-two, taketwo, zelnick

Reader Comments (Page 1 of 2)

NaeemTHM @ Feb 24th 2008 5:09PM

Finally! Someone says no to the giant monster known as EA.

If you ask me, EA buying up all these companies can only mean one thing. They want to produce a console themselves at some point. We already have more than enough consoles thank you very much. No need for a 4th...

rdj75 @ Feb 24th 2008 5:57PM

You know, thats a pretty interesting point you mentioned, an EA console. Please, I don't want to ever see that happen.

Diskoboy @ Feb 24th 2008 6:01PM

EA already did make a console.

Remember the 3D0?? The one that made the Jaguars demise pale, in comparison?

ScottyGEE32 @ Feb 24th 2008 6:05PM

Would they release one every year with only slight graphical updates and maybe renaming a thing or two?

Philpott @ Feb 24th 2008 7:57PM

EA did not make the 3DO. Get your facts straight.

Diskoboy @ Feb 24th 2008 9:06PM

Philpott - Tripp Hawkins created the 3D0 while he was still head of EA. So - yes, it was designed by EA, and the hardware was liscensed to other vendors.

Tripp Hawkins also split the 3D0 division from EA so it wouldn't be a financial burden.

Get YOUR facts straight.

eldee @ Feb 24th 2008 9:49PM

actually you're both wrong. Yes, Hawkins was a co-founder, but so were 7 other major corporations at the time (The company was actually called "The 3D0 Company"). To say 'EA designed the 3D0' is analogous to saying 'Microsoft designed HD-DVD'.

samfish @ Feb 24th 2008 11:08PM

EA would never make a console. That would mean they'd have to give up the NFL license, which states that they have to make an NFL (Madden) game for every console.

I just can't see it happening.

Philpott @ Feb 25th 2008 3:37AM

So EA didn't make it (me) but Tripp Hawkins of EA had a major role in it's design (you). Facts straightened.

NATO_Duke @ Feb 25th 2008 10:49AM

Why are you arguing over 3DO - that’s pretty funny. I doubt that EA will make a console, and I think the only reason for such speculation was a customer survey once making mention of the idea. I would be more inclined to believe Samsung will jump in the ring next.

On topic: If EA wants they can buy all my Take2 games for 2 billion. Just pick up the phone!

Kizzle @ Feb 24th 2008 5:11PM

Thank god.

Kye Wii60DF @ Feb 24th 2008 5:13PM

YES!

ApolloIV @ Feb 24th 2008 5:15PM

With Great Justice!

ChekhovsGun @ Feb 24th 2008 5:16PM

I wouldn't rest so easy. Remember EA's "accept it now or regret it" rhetoric? I wouldn't rule out hostile takeover.

Mr Khan @ Feb 24th 2008 5:29PM

That's what i figured, too. Appeal directly to the stockholders

Its certainly been postponed, but we'll see where the stockholders want to take it after they come down off the GTAIV high (which actually might not be until sometime in early 2009, since the game's sales will surge both at release and the following christmas)

caramelzappa @ Feb 24th 2008 5:35PM

I've never been a huge fan of take 2 but EA is a monster and I respect them for refusing to be swallowed up.

bigsofty @ Feb 24th 2008 5:24PM

Well done T2! :D

Brian Fantana @ Feb 24th 2008 5:26PM

Now this is good to hear.

Seattle Yonkers @ Feb 24th 2008 5:30PM

While I applaud Take-Two for saying no, I can't help but think that EA is the kind of corporation that doesn't take kindly to rejection.

ssuk @ Feb 24th 2008 5:40PM

All the power to them. EA does nothing but destroy games and turn them into soulless, money whoring franchises. To hell with EA's bullshit and I hope others who are offered to be bought out by EA follow T2's example. Keep the fuck away from EA, support western developed games which don't suck.

HB96st @ Feb 24th 2008 5:46PM

Look at it like this: If EA gets Take2, say goodbye to ALL 2K sports titles.

They would OWN basketball, baseball AND they already have football all to their selves..

They would have Bioshock.

Remember them asking for just 1 console?? with all the developers they brought, along with Moore, whats to stop them from making their own system? they would have the most exclusives!!

Then of course Ubisoft would be next.

PLEASE M$... Buy Take2... You're our only hope. Gaming will surely SUCK (especially sports) if EA gets away with this..

MICROSOFT, BUY TAKE2!!

finnith @ Feb 24th 2008 7:45PM

Why don't we say $ony or something to that effect or NinTendo (Kazaksthani tenge, look it up).

Hell, why don't we do that for every company, profit's what they're here for.

DCBlack @ Feb 24th 2008 7:46PM

You can say what you want about the other sports franchises, but 2K's brand of baseball SUCKS OUT LOUD

samfish @ Feb 24th 2008 11:51PM

MS is the only savior? Oh please...
...seriously...MICROSOFT?!

How about no one buys Take Two, Mr. Fanboy?

Whitedragon101 @ Feb 24th 2008 5:51PM

There is a god. I nearly cried when I read EA was pushing hard to buy them. I'm glad at least one company has wised up.

Poisoned Al @ Feb 24th 2008 5:53PM

I think this was a lame move just to spook Take Two's shareholders into selling, so EA can snap them up before their money printing behemoth rolls out of the door and the shares shoot up. I bet they knew they'd say no from the very start and just wanted to get yet more cash.

HB96st @ Feb 24th 2008 5:54PM

THIS is Crazy... EA would "Force us" to buy their sports titles because they would basically be the ONLY SPORTS TITLES ON THE MARKET!! I would be forced to stop playing sports games!

This is bad news for ALL GAMERS if EA buys T2!!

Sora267 @ Feb 24th 2008 8:08PM

No way in hell EA gets their hands on Mario Strikers/Tennis/etc., so I don't think they'll own ALL sports (if you can call Mario Sports actual sports games..) franchises.

Alex K. @ Feb 25th 2008 12:31PM

i think there's ups and downs to the sports situation.

NBA, NHL, and soccer are all non-exclusive. baseball is exclusive to take2, but that has the exception of 1st party console makers (konami's MLB game is published by nintendo)

EA, if they buy take 2, would obviously take the best of their sports and get rid of the rest. EA may make some bad sports games, but that doesn't mean they wouldn't utilize take 2's sports development to their advantage, so the quality of games wouldn't suffer too badly. that's part of the reason they want to acquire them.

if EA buys T2, i would look out for other developers starting to sports games in that nonexclusive space, but whether or not EA buys T2 i think the bottom line is that the worst problem is still the NFL exclusivity.

Mysterio @ Feb 24th 2008 11:54PM

Thank GOD they gracefully turned down EA's offer to buy them out. Now we can all sleep better at night knowing the gigantic juggernaut known as EA won't be getting their gigantic hands on Take-Two. THANK YOU Powers That Be!

HB96st @ Feb 24th 2008 6:13PM

We're not outta the woods yet.. money talks, bullsheeyt walks!

M$, are you listening?

deaftly @ Feb 24th 2008 6:16PM

Thats what im thinking, maybe MS put in a higher bid? Every sony fanboy would explode if GTA went 360 only heh.

John McPoop @ Feb 24th 2008 7:02PM

@Deaftly

Sony already had GTA IV as an exclusive if you recall and let Rock Star go multiplatform with the game for the next big franchise to be PS3 exclusive.

Raikage (Ludwig Defense Force) @ Feb 24th 2008 10:17PM

John, well Sony doesn't OWN T2, if MS did, there would be no more GTA on a Sony platform.

propanol @ Feb 24th 2008 6:44PM

This is no sign of anything. Unless another company steps fourth with an acquisition offer Take Two's board agrees to, EA will just bypass them by going to the largest shareholders (i.e. a hostile takeover).

This is far from over.

Benny @ Feb 24th 2008 6:44PM

I have a sudden urge to play monopoly.

Batroo @ Feb 24th 2008 6:59PM

Wooo go Take Two show EA who's boss

tmacairjordan87 @ Feb 24th 2008 7:02PM

this is all well and nice, but they'll eventually get their way. Anyway doesn't rockstar get to leave take two in another year or so? That would be the best time for M$ to swoop in and take them, although that would piss many sony fanboys off.

PSN: KillaKornbread (the shirt is a lie!) @ Feb 24th 2008 9:22PM

ya think? i would be massively pissed. i know exclusives sell consoles and whatnot, but lets be real, exclusives suck. if it gets to the point where MS steals away alot of my favorite 3rd party games (they already got GTA but Final Fantasy is the main one im worried about) from Sony exclusive or multiplat, i guess ill have no choice but to buy a 360. i love Sony and all, but times are changing and they arent ponying up money for their exclusives like MS and it IS all about the games anyway. damn i hate exclusives, i could care less if an exclusive goes multiplat (share the wealth man) but if they take a Sony exclusive and make it exclusive somewhere else, thats when i have a problem.

HB96st @ Feb 24th 2008 7:03PM

Y'know, not hatin' on Sony.. but I would rather M$ with T2 than EA.. That would be death to sports games as we know it.. Paying for sneaker downloads for NBA?? How about Paying for Animations in Madden?? Or just mediocre sports games period??

No competition, no innovation leads to the death of true gaming as we know it..

Noshino @ Feb 24th 2008 9:40PM

well, I would agree with you...but you see...Microsoft acquired Bungie and Rare, and you see who those ended up...

Axyl @ Feb 24th 2008 7:17PM

Like how much money is EA worth?

PSN: KillaKornbread (the shirt is a lie!) @ Feb 24th 2008 9:05PM

saying no to EA is like sex with Kobe Bryant, you can fight it if you want to, but it's gonna happen.

(and im actually a mega Laker fan for the record lol. Bryant, Gasol, Bynum, Odom,& Fisher? a line up made in heaven. and that bench is absolutely ridiculous!)

Wilhelm @ Feb 25th 2008 12:41AM

Way to steal that joke from Family Guy.

But yes... Lakers, 2008 NBA Champions.

Azrael4h @ Feb 25th 2008 1:12AM

Well, at least we can get a good GTA game or two before they become crap.

I wish I was a multi-billionaire. I'd buy T2 and go private with them. Screw the investors, and EA couldn't do a damn thing about it. Because it'd be mine.

There'd end up with three conglomerates, EA, Ubisoft, and Me.

Though I'd piss off XBox fanboys by not releasing anything for the 360 and future XBoxes, only Wii and PS3; and the Windows platform would get games after Linux and Mac did. Six months later.

Then I'd buy Jeep off of Chrysler, and build a new car company. The Return of AMC! With less Pacer and Gremlin!

Soulcrux42 @ Feb 26th 2008 1:36AM

This is why you will never be a multi-billionare. You don't give games to your favorite platforms, you give them to the highest bidder, or you go multiplat.

Azrael4h @ Feb 26th 2008 9:35AM

So running with 5 of 6 major platforms is a bad business move? Maybe I should go exclusive X360, then I could have a market base smaller than if I went Mac/Linux only.

Reading comprehension owns you.

jrhawk42 @ Feb 24th 2008 11:30PM

I don't want to sound "anti-EA" because I do like a lot of their games, and believe they can be a good publisher, but they really need to stop trying to act like a major corporation, and start acting like a video game publisher. I'd rather see them create studios from the ground up instead of buying out (and in some cases burning down) successful ones.