Take-Two says it's worth more than $26 per share, remains open to future bids

by James Ransom-Wiley { Apr 17th 2008 at 7:30PM }

At its Annual Meeting of Stockholders in New York today, Take-Two's Board of Directors remained steadfast in its recommendation to shareholders not to accept EA's tender offer to acquire the company. Speaking on behalf of the board, Chairman Strauss Zelnick stressed that Take-Two is worth more than $26 per share. "It just doesn't stack up," said Zelnick of EA's offer. "The synergies alone to a strategic partner -- the synergies themselves -- could be worth anywhere from $6 to $29 per share."

However, Zelnick did not entirely rule out the possibility of a takeover, as the board continues to assess "informal conversations" with and "expressions of interest" from third parties. He assured shareholders that the board was doing everything in its power to increase the value of the company, a strategy that could, in the future, include combining with a third party. Zelnick declined to "speculate" on today's news that the FTC has requested additional information from EA regarding the proposed takeover bid. Zelnick also refused to comment on the possibility that he or the board has signed confidentiality agreements.

Tags: annual-meeting-of-stockholders, breakingnews, ea, take-two

Reader Comments (Page 1 of 1)

JoSav @ Apr 17th 2008 7:33PM

Dont sell!

Chase @ Apr 17th 2008 7:33PM

I bid two Skittles and two-sevenths of a linty Take 5 candy bar.

Chase @ Apr 17th 2008 7:33PM

And if it helps, the two Skittles are lime and grape.

caustic @ Apr 22nd 2008 12:55PM

the board has considered this offer, and has unfortunately decided to decline.

rising profits and rockstar-ish brand recognition lead them to believe that the company is worth at least four special edition Ice Cream Skittles

to quote one prominent board member, "the lime and grape offer was insulting, at best"

http://www.typetive.com/candyblog/item/skittles_ice_cream/

Soliex @ Apr 17th 2008 7:37PM

No Dont Sell T2, GTA IV will change things. EA wants to delay the damn game, Dont let them!!!

Curtis the Claw:XBL - supapaypamawio @ Apr 17th 2008 7:38PM

And you know this how?

BC_UK @ Apr 17th 2008 7:41PM

Now why the hell would they want to do that??? The game is out in less than 2 weeks, its on trucks and in warehouses... there is no way and absolutely no valid reason to delay.

Benny @ Apr 17th 2008 7:58PM

Delaying it would push it into the next financial year, which would boost EA's '09 figures.

BC_UK @ Apr 17th 2008 8:43PM

While that makes sense from a financial standpoint, EA could never get away with it and a takeover would not happen fast enough to stop the game from being on the shelfs in 12 days. By the time this is anywhere near resolved we'll all long be happy gta4 players already.

rv @ Apr 17th 2008 8:58PM

Its not gonna be delayed. Its about 1 week from release. I don't think EA can take control of the company fast enough to delay it even if they wanted to.

SimonBob @ Apr 17th 2008 7:41PM

I can't believe none of the major gaming news sites thought this was important enough to liveblog it. What, Spike's VGAs are a valid expression of electronic entertainment, but an audiocast of a room full of suits is nothing? Good thing _somebody_ thought to step up.

http://simonbob.fobby.net/blug/2008/04/17/liveblogging-the-take-two-interactive-shareholders-meeting/

Soliex @ Apr 17th 2008 7:44PM

They would want to delay it so Ironman would have better box office sales. GTA would be better for EA to be released in the 3rd or 4th quarter.

Dr. @ Apr 17th 2008 7:51PM

Asking someone if they've signed a confidentiality agreement is the best thing ever.

Benny @ Apr 17th 2008 8:00PM

I really really hope someone else comes in and snatches up T2. It's obvious they're now gunning for a sale, but I'd much prefer Microsoft or Ubisoft to buy.

oldschoolgamer @ Apr 17th 2008 9:05PM

M$ needs to step up. The yahoo bid probably won't happen so why not suck up T2 instead? The revenue from exclusive GTA franchises will exceed anything they could've received from acquiring yahoo.

bearxor @ Apr 17th 2008 9:15PM

Dear Mr. Zelnick:

No, you're not. GTA 4 will give you a boost in stock price, this much we can both agree with.

Your stock closed today at a little under 26 dollars. You're on the upswing from GTA4 buzz. When was the last time your stock was over $26? March 2005, and that wasn't for very long. That was your peak.. The time before that? October 2003, a little over $26. The time before that? Never.

If you want to keep operating your business, fine. More power to you. To say, however, that EA's offer is a lowball is simply ludicrous and false. Eighteen dollars a share, that would be lowballing.

While you may get a boost from GTA4, take note your stock peaked at the end of Feburary. In fact, it skyrocketed. From $15 a share. Why? Because shareholders thought that the offer from EA on Feb 19th would put you out of your misery. Like all buyout rumors, it causes the stock price to go up.

You'll be reconsidering this deal come September.