EA to push Take-Two purchase directly to shareholders

[Sedako]

In light of the rejection of it's bid to buy out Take-Two directly, EA plans on taking the matter directly to shareholders with a $26 per share offer. From ars technica:

Take Two has responded to the offer. "The Board of Directors of Take Two Interactive Software, Inc. today recommended that Take Two stockholders take no action at this time in response to the announcement by Electronic Arts Inc. that it has made an unsolicited conditional tender offer to acquire all of Take Two's outstanding shares of common stock for $26 per share in cash." The company says it will review and evaluate EA's new offer and will subsequently issue a new recommendation along with a justification.

Not good news, considering Take-Two has recently suffered nothing but big losses for the past year or so.

 

[Shoes_Buttback03]

Not good news, considering Take-Two has recently suffered nothing but big losses for the past year or so.

Wait... what? How are they losing? Bioshock GTA IV preorders and the new edition of Bully. And there in a loss?!

btw why the hell does EA have to own everything! I want to buy Take-Two stock just to not give it to EA and spite them. They were pretty cool with the hole "Hey Fox news f*** off will ya" but this really erks me.

 

[Sedako]

Wait... what? How are they losing? Bioshock GTA IV preorders and the new edition of Bully. And there in a loss?!

From the article:

"Take Two still isn't a profitable company; for its most recent quarter, it posted losses of $38 million, compared to a loss of over $21 million a year previous."

My guess is that other than the titles you mentioned, Take-Two hasn't been doing too hot recently.

 

[DEATHMASTER]

explains why I never heard of them.

 

[i am HOLLYWOOD]

i really hope EA doesnt suck this company up too. . just because it irritates me that they're slowly becoming the Borg. . .

 

[CptStern]

Wait... what? How are they losing? Bioshock GTA IV preorders and the new edition of Bully. And there in a loss?!

? the value of the shares will skyrocket after gta's release ..why do you think Take Two turned them down and said "wait till GTA is released" ..why do you think EA is so gungho about buying it before release? because the stock value is low now, high when gta is released ..it's a difference in the 10's of millions of dollars

 

[Deleted member 56031]

I'd say it is inevitable that EA are going to buy take two considering this news.

 

[Kadayi]

Activision might step in, they have ridiculous amounts of cash as a result of WoW.

 

[boglito]

? the value of the shares will skyrocket after gta's release ..why do you think Take Two turned them down and said "wait till GTA is released" ..why do you think EA is so gungho about buying it before release? because the stock value is low now, high when gta is released ..it's a difference in the 10's of millions of dollars

I wouldn't say "skyrocket". Even with 10M copies sold, which is possible in a long timeframe, that's only USD 500M revenue. To put it in perspective that is quite a bit less than the premium EA are offering for Take Two.

The offer from EA is thus quite extravagant and refusing it would be likewise extravagant. Take Two may be recomending to hold off, but some claim this is a play for the gallery and that the top heads in take two are moving into position to maximise their own profits in what seems to be a pretty inevitable takeover.

The shareholders (who ofcourse have little to no romantic feelings towards the virtues of video game publishing) are faced with the opportunity to cash in on gta4's success now or in a few years time. I think they will choose now.

That said I understand that people are upset, both because EA truly sucks (allthough vivendi aka "blizzard activision" also is known to suck) and because it is questionable to have two major groups of sporting franchises under the same label.

EA was already on my boycott-list. If they were not on yours then this normal and sensible business-transaction should not be what tipped you over. (This last part is directed at outraged people in general, not anyone in particular.)

 

[-Psy-]

EA want to jump on the GTA bandwagon to make lots of money without having any input on the actual game.

 

[99.vikram]

EA want to jump on the GTA bandwagon to make lots of money without having any input on the actual game.

EA and Take Two are publishers. They never had any input in the GTA games. :|

 

[CptStern]

I wouldn't say "skyrocket". Even with 10M copies sold, which is possible in a long timeframe, that's only USD 500M revenue. To put it in perspective that is quite a bit less than the premium EA are offering for Take Two.

it's not what it will be valued based on units sold it's what the stock itself will be valued at launch ..they wont have sales figures until the end of the month ..Take Two rejected the offer because it's undervalued based on their projected forecast as to what shares will be valued at in the coming months ..their bid was undervalued based on projected earnings

 

[Kadayi]

If EA buy them no doubt GTA for the PC will be out the door lickity spick ala Mass effect, which is no bad thing tbh. I don't want to have to wait a year or so before a PC release.

 

[Sedako]

If EA buy them no doubt GTA for the PC will be out the door lickity spick ala Mass effect, which is no bad thing tbh. I don't want to have to wait a year or so before a PC release.

And then all future releases will be rushed to all hell, resulting in unfinished and buggy games.

 

[AiM]

If EA buy them no doubt GTA for the PC will be out the door lickity spick ala Mass effect, which is no bad thing tbh. I don't want to have to wait a year or so before a PC release.

EA has apparently changed it's corporate culture to avoid this sort of thing. It's aim is supposedly to allow each company autonomy in order to foster new IP's. Of course, how much of this is bullshit remains to be seen. But considering how big the company is and how little significant new IP's have come out under them, it wouldn't be surprising to see them at least see them try.

 

[Gray Fox]

EA and Take Two are publishers. They never had any input in the GTA games. :|

Take Two owns rockstar so they do have input. And even of they didn't, publishers usually own the IP and finance the project so they have the end say in what go's to retail.