EA makes all cash tender offer to purchase Take-Two

With Take-Two Executive Chairman Strauss Zelnick having thoroughly rejected EA's initial buyout offer, the Madden and Burnout publisher has redirected its corporate Katamari at Take-Two shareholders. EA has announced the commencement of a tender offer for all of the currently outstanding shares of common stock of Take-Two Interactive Software at $26 per share. Valued at approximately $2 billion, the offer reportedly represents a 64% premium over Take-Two's closing stock price on February 15, the company's last trading day before EA began its increasingly aggressive financial courtship. Compared to Wednesday's stock price, it constitutes a 4.4% premium.

Barring extension, the tender offer is good until midnight EST on Friday, April 11, 2008. EA CEO John Riccitiello described the offer as "a great opportunity for Take-Two shareholders" and as a a way to "maximize the value" of their investment. "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," he concluded.

Will shareholders deem this offer welcomed financial assistance or unwanted financial insistence? We'll have to wait and see.

Reader Comments (26)

Oh, goody.

Basically, this is not an offer to the company, its an offer directly to the shareholders. There will be some that will take it. This way, EA will be taking stock in the company, just maybe not a voting minority. I believe, others may hold on tight. If I remember correctly, there was a large company that held 20% of take 2 stock. If they do get a voting majority, then they can elect their own board members, who will accept ea's offer. Really its up to the shareholders now.

Il faut resister les camarades, il faut resister.

Vive la Resistance!

wow, EA must feel really threatend by the 2k sports and GTA franchises. they seem overly desperate and relentless.

horrible.

Dear EA,

No one likes you.

Sincerely,
Gamers Every Where

P.S.

except for Bioware and Pandemic, they're Ok.

xoxo

EA Games... *whisper* We own everything.

EA, SUK IT!

-holds up pillow behind head-

LEAVE TAKETWO ALONE!!!!!!!!!!!! T_T

This is good news! Now Xbox 360 owners never have to worry about R* exclusives they will go to both consoles from now on.So say good bye to those games that were exclusive so 360 will get a pot.

One sucky company merging with another equally sucky company?

One sucky company merging with another equally sucky company!

b33eazy say good bye to that 360 gta exclusive content. EA will buy it out and release it on the PS3 to make a buck. Believe me when I say that this isn't good for anyone. Your going to see lower quality games being released simply for EA to line their pockets with. It's happened before and will happen again. Just wait and you'll see it with pandemic and bioware as well.

Yeah, except chances are Rockstar (if they were able) probably has some clause so they retain the rights to the GTA IP in the case of a buy out. I imagine it'd be up to them. Also depends on if there's a license involved in the episodic content, even if EA does get all rights to GTA through the buy out. Anything is possible, though.

TBH, I really hope this doesn't happen. I mean, I don't play any sports games, but lack of competition = bad.

In a hostile takeover like this, I don't think there are ANY clauses.

Thank God. Anything to get that pompous waste of oxygen Zelnick out of our space. Have so many developers ever been so mismanaged by one guy?

He makes Riccitiello look like a genius.

Its quite scary how desperate and determined EA is to takeover T2...

Honestly I'm a 360 fanboy...but this goes beyond fanboyism...

EA is not good for gamers as a whole and if this happens I truly fear for the industry as a whole. I hope T2 shareholders resist this crap...

If you were a Take Two shareholder who'd watched his/her investment progressively decline in value over the last two years, would you have any incentive whatsoever to resist a 60%+ premium? This is a get-out-of-jail-for-free-card for them; a chance to get something out of an investment in a company seemingly headed for financial ruin, GTA4 not withstanding.

Its not much of a premium now. Take 2 is selling for 25.55 right now. The EA offer is $26. Thats only a 1.7% premium as of right now.

It begins.

EA will have acquired Take Two soon enough.

I don't like the idea of seeing a simpsons version of GTA in stores...its not out already is it?

http://en.wikipedia.org/wiki/Simpsons_hit_and_run

Please Take-Two dont let this happen becasue god forbid it does I already dont support anything EA so I would not be buying Rockstar games as well.

EA is just like Bush. It does all this stuff to even further prove of it's evilness and while we all point at it and take notice it just kind of smirks and says "nothing to see here..." and closes the curtain.

If all this mess doesn't show that EA cares nothing about games or gamers, and only cares about profits, shareholders, and it's dream of a games industry monopoly then I don't know what does.

Notice how through all of this they haven't once mentioned any reasons outside of financial/shareholders/profits/etc. as to why they want to buy Take-Two. Haven't even TRIED to act like "oh...ummm... yeah this will be good for the industry and gamers... or something" at all. NOTHING.

Some other big publisher please come save us. ANYONE except EA. Hell, I would even be okay with Midway or Ubisoft. :P

I really wish an asteroid would fall from the sky and obliterate EA headquarters before they gobble up every good developer and bring about a second video games crash a-la 1983.

Whatever happened to this:

http://www.joystiq.com/2008/02/08/dice-08-riccitiello-warns-against-consolidation-says-ea-blew/

Apparently he was just messing with our minds....

EA makes all cash tender offer to purchase Take-Two

Reader Comments (26)

Posted: Mar 13th 2008 7:09AM (Unverified) said

Posted: Mar 13th 2008 11:32AM R V said

Posted: Mar 13th 2008 7:06AM ThornedVenom said

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Posted: Mar 13th 2008 11:40AM R V said

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