Take-Two spent $11 million preventing EA takeover
by Alexander Sliwinski 
{ Dec 22nd 2008 at 5:20PM }
For better or worse for investors, Take-Two won its battle against EA and remains independent. Although, investors can't be too happy to see the stock they could have gotten $25.74 for during the EA offer currently trading around $8 per share*.
*In fairness, game stocks in general are down. Apparently something to do with an economic crisis.
[Via GameDaily]
Reader Comments (Page 1 of 1)
Mr Khan @ Dec 22nd 2008 5:25PM
*In fairness, game stocks in general are down. Apparently something to do with an economic crisis.
True, but what exactly does Take Two have up it's sleeve that could really boost stock value after this all blows over?
Marty @ Dec 22nd 2008 5:26PM
Grand Theft Auto 5?
I still think they'll get a lot of GOTY awards for GTA4 as well, so if they can find anyone out there who doesn't already own the game after those awards are doled out, they should be good.
Haggard @ Dec 22nd 2008 5:28PM
World of Grand Theft Auto?
Shit, hope Strauss Zelnick's not reading this.
justshovejayohbe @ Dec 23rd 2008 9:30AM
Game stocks are like movie stocks: blockbusters don't make your stock go up, systemic success does.
Marty @ Dec 22nd 2008 5:25PM
Sounds kinda like what happened to Yahoo! after they refused Microsoft' buyout... but I don't expect that Take-Two will slump the same way Yahoo! did after that fiasco.
ice~ @ Dec 22nd 2008 5:33PM
I bought stock in Electronic Arts...
dabamf @ Dec 22nd 2008 5:34PM
Wow, T2 could have looked like geniuses if they had taken the deal. Most likely EA would have be laying T2 employees off right now if the deal had gone through. Oh well, hindsight is 20/10!
Ebichu @ Dec 22nd 2008 5:51PM
Fair enough, 11 million sounds about right. To put things in perspective: Kmart once spend 20 million in 2 weeks to fend off a takeover.
mr mobius @ Dec 22nd 2008 6:22PM
So could a lot of companies try to take over a rival company if they all wanted the company out of business, and do it by making the company bankrupt?
mikewalsh19 @ Dec 22nd 2008 7:09PM
Technically yes, but you have to figure how much EA spent during the same time period. I would wager it was more than the $11M that Take-Two is reporting to the SEC.
NFK @ Dec 22nd 2008 9:19PM
What? I don't get it. How come Take-Two had to spend money to NOT get sold? Can someone quickly explain to a confused fifteen year old?
Levi @ Dec 22nd 2008 10:34PM
I'm twenty three and was just going to ask the same thing. I think maybe it has to do with preventing EA from buying a majority of their stock? Correct us if we're wrong, Joystiq!
Vanillacide @ Dec 23rd 2008 5:11AM
Management of a company is different to the owners of a company. The owners are the shareholders, and management runs the company on the shareholders' behalf.
Another company may offer to buy the shares of a company (i.e. a takeover, otherwise known as Merger or Acquisition), and will offer say $25 per share to shareholders; the shareholders then vote to accept the offer, if a certain threshold is passed the offer is accepted and all shares are sold.
Management typically don't like the sound of this, because they could lose their jobs, so they fight the take-over and prevent the owners of the company from selling it. Take-Two's management did this to the tune of $11-million.
carg0 @ Dec 23rd 2008 1:28AM
$11 million?
damn, and i thought i was stubborn...
blinguskahn @ Dec 23rd 2008 1:30AM
The 11 Mil I bet had mostly to do with legal fees. Inunctions, lawyers and paying off the right people to keep the takeover from happening.
As a side note, THANK GOD EA failed. Imagine how horrible Bioshock 2 and GTA5 would have been under EA. Not to mention that EA would have just used 2K's sports engines for all their franchises and sunk NBA, NHL, MLB 2Kx for ever.
ScottG13 @ Dec 23rd 2008 9:23AM
Definitely. Because Rock Band 2, Dead Space, and Burnout Paradise have just be HORRID this year.
Even EA's middle of the road titles like Mercs 2, Army of Two and Mirror's Edge were solid and highly playable if flawed.
Vanillacide @ Dec 23rd 2008 5:13AM
This is the management of Take-Two spending $11-million of shareholders funds to prevent the shareholders accepting an offer from EA.
Shareholders would have received $25.74 per share, but now they are worth approximately $8 each; I bet shareholders are not at all happy with Take-Two's management.
Classic demonstration of the 'agency problem'.
ScottG13 @ Dec 23rd 2008 9:24AM
A terrific investment of shareholder value. This is management protecting their own jobs, not protecting shareholder value. A classic failure of fiduciary duty to benefit ones self. Zelnick, you suck.