Electronic Arts REALLY Wants Take-Two
Throwing cash on the table like no other.
Published: March 14, 2008
In the fast-paced world of financials, EA is one of the top dogs. Then again, when you own upwards of 15% of the industry, give or take, you better be. Well, it comes as no surprise that they want Take-Two, and they want them bad. After all, they've been offering to buy the company for god knows how long. But Take-Two isn't budging. No sir, not with Rockstar under its belt.
So what happens when EA turns around and offers a 64% jump in your stock price? Well, then that'll get folks talking. So EA has decided to offer $2 billion in cash, which equates to some $26 per share, in the hopes that Take-Two will finally give up the good fight and enfold itself into the EA banner.
“This is a great opportunity for Take-Two shareholders,” EA Chief Executive Officer John Riccitiello said. “We believe Take-Two investors will see our tender offer as the best way to maximize the value of their investment in Take-Two. This tender offer provides a clear process to complete the proposed transaction. 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.”
But will those creative teams have to work extraordinarily long hours to push mediocre product out the door?
As of right now, Take-Two has until April 11th, 2008 to decided whether it wants to take EA's offer or not. That gives the company some wiggle room, perhaps to negotiate something.
Until then, the industry waits with bated breath to see what happens between Take-Two, the company that keeps losing money, even with strong IPs in its catalog, and EA, the company that always makes money even when not so strong software hits the shelves.
So what happens when EA turns around and offers a 64% jump in your stock price? Well, then that'll get folks talking. So EA has decided to offer $2 billion in cash, which equates to some $26 per share, in the hopes that Take-Two will finally give up the good fight and enfold itself into the EA banner.
“This is a great opportunity for Take-Two shareholders,” EA Chief Executive Officer John Riccitiello said. “We believe Take-Two investors will see our tender offer as the best way to maximize the value of their investment in Take-Two. This tender offer provides a clear process to complete the proposed transaction. 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.”
But will those creative teams have to work extraordinarily long hours to push mediocre product out the door?
As of right now, Take-Two has until April 11th, 2008 to decided whether it wants to take EA's offer or not. That gives the company some wiggle room, perhaps to negotiate something.
Until then, the industry waits with bated breath to see what happens between Take-Two, the company that keeps losing money, even with strong IPs in its catalog, and EA, the company that always makes money even when not so strong software hits the shelves.