Take-Two board rejects EA's 'inadequate' tender offer

by Ludwig Kietzmann { Mar 26th 2008 at 7:50AM }

After reviewing EA's recent and "unsolicited" tender offer to nab shares in the Grand Theft Auto publisher at $26 a piece, Take-Two's board of directors has deemed the maneuver "inadequate in multiple respects and contrary to the best interests of Take-Two's stockholders." The company heads imparted a similar sentiment two weeks ago when they asked stockholders to resist EA's offer while they reviewed it and formulated an official "hellz no."

The board continues to advise stockholders to hang on to their shares, claiming that the offer "substantially undervalues" the company and its "valuable franchises." Said Strauss Zelnick, chairman of the Take-Two board: "Our Board, after careful review, has unanimously determined that Electronic Arts' offer continues to provide insufficient value and remains opportunistically timed to capture the value of the upcoming Grand Theft Auto IV launch at the expense of our stockholders." He also expressed that the company will "review all available options" and remain focused on maximizing shareholder value.

To this end, the board has suggested investigating "alternatives" to the EA offer, "which may include a business combination of the Company with third parties or with EA, remaining independent, or other strategic or financial alternatives, that could deliver higher stockholder value than the EA Offer." Take-Two claims to have already prepared materials to facilitate "business combination transactions" with a number of other interested third parties, creating the impression that it would rather trade a hostile takeover for an auction.

Tags: BreakingNews, EA, Grand-Theft-Auto, GrandTheftAuto, GTAIV, Take-Two

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Reader Comments (Page 1 of 1)

Fox318 @ Mar 26th 2008 8:12AM

Good. EA needs to die, just look at what they have done to the industry. If they bought Take-Two it would be disaster for sports fans such as myself. Not to mention Bioshock would have DLC for everything.

Fuck EA.

Bleu @ Mar 26th 2008 10:13AM

Yes our prayers have been answered guys, God will not allow this to happen because he knows how EA really is. As you say Fox EA needs to die!!!!!!.

jimmarn @ Mar 26th 2008 5:48PM

Well, they can still get in to it. This will probably just delay it. I really want them to just give up!

ThePremierAssassin @ Mar 26th 2008 8:13AM

Good for them...

Loving Battlefield: Bad Company but hating EA as of lately...

I really hope they don't take over T2...

rv @ Mar 26th 2008 11:44AM

Well its up to the shareholders now, its not really up to the company. If the shareholders want, they can completely disregard this advice, because thats what it is, advice. They can still sell their shares to ea for $26 if they wish, but they may just hold on, since the stock is going for 25.85 now, which is only a $.15 boost. Still, if ea got enough shares, they could become the voting majority through voted obtained.

Killer Loki @ Mar 26th 2008 8:26AM

Pfft, well T2 had's it now - this will only encourage EA even more to take them over. By the end of summer EA will own T2.

Killer Loki @ Mar 26th 2008 8:27AM

So, where's the DLC for 'Bioshock' now that T2 promised?

Fox318 @ Mar 26th 2008 10:05AM

They already did a DLC package. If they just added new levels it would have fucked up the narrative of the game(which is arguably the best part of the game.

Jtenma @ Mar 26th 2008 8:36AM

GODAMNIT EA, STOP THIS SHIT ALREADY!

Blazur @ Mar 26th 2008 8:41AM

Eat it, EA!

Psiphon @ Mar 26th 2008 9:04AM

I was wondering what would have happened if Richard Gere had offered Julia Roberts 100$ to have her for a week. Awkwarrrrd...

kevinski @ Mar 26th 2008 8:44AM

Thank God. EA has to be fuming right about now, though. Hahahaha...

ScottG13 @ Mar 26th 2008 8:49AM

So help me God, when this is all over, if someone else hires Zelnick, I will probably throw up. I loath this man and his vague disinformation, lies, mismanagement and probably S&M fetish. I have no clue why the T2 investors continue to let him run this company into the ground.

koehler83 @ Mar 26th 2008 8:50AM

Huzzuh! Stick to them guns T2! You rock! EA can suck it!

Art Vandelay @ Mar 26th 2008 9:28AM

EA is looking very desperate right now. Its pretty sad. I guess they have yet to recover from the Activision, Blizzard merge.

They need to take a new approach, consumers like variety. EA's idea of variety is offering Madden in English and Spanish.

ScottyGEE32 @ Mar 26th 2008 9:32AM

They'll increase the bid once Battlefield: bad company is out using all the money it steals from consumers when they pay to use guns.

ApolloIV @ Mar 26th 2008 9:51AM

They will also increase the bid with my balls in their mouth.

James Parker @ Mar 26th 2008 9:58AM

"Inadequate" and "tender" are both words that have been used to describe my lovemaking

Charles Nelson Reilly @ Mar 26th 2008 10:42AM

You are all missing the point. Zelnick and company are not running away from EA; they're playing hard to get but the ultimate goal is to get more out of EA. Right now, EA has said hey, I just paid for your pizza let's go to bed, and T2 is saying back to EA, "Hold it up, buddy, I'm worth at least a slice of pizza with toppings and a soda."

How is it that none of you know this when this is straight out of EA's Publishing Tycoon! game?