EA proposed to buy take 2 for 2 billion dollars

[Gray Fox]

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Electronic Arts Inc. (?EA?) (NASDAQ: ERTS - News) today announced that it has proposed to acquire Take-Two Interactive Software, Inc. (?Take-Two?) (NASDAQ: TTWO - News) in an all-cash merger valued at approximately $2.0 billion.

EA?s proposal of $26 per share in cash represents a premium of 64 percent over Take-Two?s closing stock price on Feb. 15th, the last trading day before EA sent its revised proposal to Take-Two, and a 63 percent premium over Take-Two?s 30-day trailing average price over the thirty trading days ending on that date.

EA?s proposal was contained in a letter sent on Feb. 19th by EA Chief Executive Officer John Riccitiello to Strauss Zelnick, Executive Chairman of the Board of Directors of Take-Two. The Take-Two Board?s subsequent rejection of the EA proposal led to EA?s decision to release the letter and bring its proposal to the attention of all Take-Two shareholders.

Mr. Riccitiello said today: ?Our all-cash proposal is a unique opportunity for Take-Two shareholders to realize immediate value at a substantial premium, while creating long-term value for EA shareholders. Take-Two?s game designers would also benefit from EA?s financial resources, stable, game-focused management team, and strong global publishing capabilities.?

The EA letter warned that further Take-Two delay in accepting EA?s proposal could prevent Take-Two?s shareholders and other constituents from realizing its benefits. ?There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today,? Mr. Riccitiello wrote. The letter added that timely completion of the proposed transaction would allow EA?s strong publishing and distribution network to positively impact the ongoing post-launch sales of GTA IV and support the new Take-Two titles scheduled for launch later in the year and during the holiday selling season.

As noted in EA?s Feb. 19th letter, EA?s proposal is not conditioned on any financing requirement. It is, however, subject to certain customary conditions as set forth in the letter. EA?s $26 per share proposal is based on the current equity capitalization of Take-Two. Although EA indicated in the letter that its proposal was subject to negotiations commencing by Feb. 22nd, EA intends to keep its proposal open for the present to give Take-Two?s shareholders and Board of Directors further time to consider it.

http://biz.yahoo.com/bw/080224/20080224005062.html?.v=1

http://www.eatake2.com/

and the response (they refused)

http://ir.take2games.com/ReleaseDetail.cfm?ReleaseID=295739

 

[Qonfused]

Yesyeysyseysyesyeysyeyseysyeysyesyesyeysyeysyesy

**** YES

[edit] At them declining...

 

[Iced_Eagle]

Yesyeysyseysyesyeysyeyseysyeysyesyesyeysyeysyesy

**** YES

[edit] At them declining...

You realize this is far from over right?

Take2 as a business is going downhill.

Either they can do a quick turnaround with their entire business (it will take more than GTAIV to change that), or eventually they realize they will need to succumb to the proposal's that are out there or risk getting ****ed over because you go bankrupt.

It's the shareholders who ultimately decide if this is a good deal, and they want what is best for the business.

Pachter think that this is going to happen inevitably.

Also, TakeTwo promised that on April 30, 2008, it will begin discussions with EA again on if a takeover is a good idea.

 

[phantomdesign]

I was reading somewhere that Rockstar's contract is over soon; evne still, an EA takeover would be a very bad thing.

 

[B_MAN]

why do the Borg always come to mind when i read/hear of EA?

 

[Wanted Bob]

Assimilation is imminent. Resistance is futile.

 

[MRG]

why do the Borg always come to mind when i read/hear of EA?

Because EA is the Borg. Resistance is futile.

-MRG

 

[Beerdude26]

I remember the good old times when EA didn't sell shit in bags.

 

[-Psy-]

I'm tempted to make that EA Death Star my wallpaper.

 

[Llama]

borg cube, newb.

 

[Deleted member 56031]

Cool EA pic, although I never liked star trek

Personally I think this will eventually go ahead.

 

[CptStern]

it would be stupid to sell right now before the release of gta4 ..as soon as it's released the stock value will go up meaning the company's value goes up ..yes the offer is inadequate ..after release I bet Take Two will be a bit more receptive ..EA is just trying to get in while the value is down

 

[ríomhaire]

How long until Valve buys EA?

 

[smwScott]

This is probably very, very bad news. I don't see EA ever releasing a game like Manhunt and therefore would probably stifle Rockstar's creativity. However, if how they are handling Bioware is any indication, it is possible that the more mainstream titles like GTA might be handled better. Though I still see them milking the hell out of it with spin-offs, ports, yearly releases, and other cash-ins.