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EA proposes to buy Take 2 for.... TWO... BILLION... DOLLARS..!! (AHUAHUAHUAHUA)

K

Kreuzader

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

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.
Click to expand...
 
R

RBH

Member
badboys2.JPG

"This shit just got real."
 
D

Deleted member 284

Unconfirmed Member
I'm noticing that EA likes releasing news like this on a Sunday.
 
V

Vast Inspiration

Banned
Say goodbye to the only potential rival to EA Sports.
The bought the NFL License AGAIN and now they're buying out the only competition for the rest of their sports games.

This bid is to become the bigger than Activition Blizzard and to monopolize the sports line. Rockstar will be gone in a little bit so they're not in it for them.
 
D

Deleted member 8095

Unconfirmed Member
EA has turned things around as of late IMO. I don't mind this purchase, especially if some of the 2k people help out with Madden.
 
R

rs7k

Member
TTWO would be stupid not to get bought out for $26 a share. Or that's what me, a TTWO shareholder is thinking :(

I must be the only hoping this will happen.
 
E

eznark

Banned
It'll save em some money on exclusive sports licenses, which they will undoubtedly pour back into better quality Madden's...right?
 
S

speculawyer

Member
Nuclear Muffin said:
That's insane! Take 2 aren't worth 2 billion, not even with GTA!

That being said, it would make EA more powerful than Activision Blizzard!
Click to expand...

No, they are not worth 2 billion . . . they are worth much more.

WTF? EA just paid nearly a billion for just 2 developers. TTWO has a ton of studios and IP.
 
G

GauntletFan

Banned
Complaining about this stuff is completely futile.

It's clear the games industry is going to follow the same model as the movie business. (actually, not a bad thing IMO)

Better get used to it.
 
G

gofreak

GAF's Bob Woodward
mood said:
Consolidation is awful.
Click to expand...

Maybe it won't last long. Maybe huge publishers will be rendered redundant with a rise of digital distribution, just like big retail. Would be nice to have a situation where you've bunches of different developers selling directly to consumers rather than a few huge houses controlling everything.

Maybe that's just a dream though :|
 
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