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[LCGeek]

Hopefully someone does something about it, MS/Sony/Nintendo whatever, i mean jesus christ, they just wasted almost a billion a couple of months ago with Bioware + Pandemic. They want to buy Ubisoft and already bought a part of it.

Now they are going to buy Take Two, i mean christ sakes, time out bitches. Taking this shit a bit too far no?

Why should nintendo care about EA eating up 3rd parties they don't need em like the other two do. If anything EA buying these 3rd parties would be better for nintendo since down the line these teams might actually make something on a nintendo platform where as they do jack now for the most part. Still that's hopeful thinking since EA isn't doing shit on a nintendo platform now. This is an issue that effects MS and Sony more not nitnendo so much if anything makes earn more profit in the end.

 

[LJ11]

I'm going to need translation on that one. I barely passed my Finance class.

Basically, they were going to boost managements compensation. According to the filing they would receive stock options, that would vest in 3 years, unless Take Two was acquired before they vested (before 3 years). In that case, the options would vest immediately ie the management team would receive 600k in shares. However, if Take Two received a suitor before the shareholders meeting on April 1st (when the compensation package would be voted on), the shares would no longer vest immediately, which is why Zelnick and Co wanted it quiet.

Edit: The management team wanted this compensation package to go through, before shopping TTWO so they could cash in on the stock options. Make sense now?

 

[Doc Evils]

Interesting info from N'Gai:

I'll post the Greenberg article, it's juicier.



He was ripping on them (when does he not rip into TTWO?) on CNBC earlier in the day, surprised we missed this article yesterday.

So the T2 execs want to milk from the EA deal and screw over share holders?

 

[Christoff Yurievich]

Basically, they were going to boost managements compensation. According to the filing they would receive stock options, that would vest in 3 years unless Take Two was acquired before they vested (before 3 years). In that case, the options would vest immediately ie the management team would receive 600k in shares. However, if Take Two received a suitor before the shareholders meeting on April 1st (when the compensation package would be voted on), the shares would no longer vest immediately. Make sense now?

maybe. so since TT received this offer before 4/1 it won't happen?

 

[LJ11]

maybe. so since TT received this offer before 4/1 it won't happen?

Yeah, their options won't vest now because EA told the world about it. Zelnick am cry basically.

 

[Doc Evils]

Yeah, their options won't vest now because EA told the world about it. Zelnick am cry basically.

ah I see.

 

[Christoff Yurievich]

what about this part?

Then, in a public filing, Take-Two in effect threatened EA not to make the offer public by giving ZelnickMedia a chance to enrich itself, at the expense of shareholders, by granting restricted stock that will vest immediately if EA made the deal public.

 

[LJ11]

what about this part?

Yeah, that's why Zelnick wanted it swept under the rug. If they received an offer prior to 4/1, and TTWO was acquired down the road, the teams options wouldn't vest immediately.

If everyone kept their mouths shut, and TTWO was siphoned off after 4/1 they would receive 600k shares. Everyone saw what happened to the share price once the EA deal popped up.

 

[duk]

*buys take 2 stocks

 

[RBH]

Just saw Bloomberg TV talking about the EA/Take-Two story a few minutes ago.

They were saying that Take-Two's rejection of EA's offer could allow for some other offers to come in as well before April, specifically offers from Viacom and News Corp.

 

[LJ11]

Just saw Bloomberg TV talking about the EA/Take-Two story a few minutes ago.

They were saying that Take-Two's rejection of EA's offer could allow for some other offers to come in as well before April, specifically offers from Viacom and News Corp.

Rumors are Viacom already offered $1.5B

 

[speculawyer]

Interesting info from N'Gai:

I'll post the Greenberg article, it's juicier.

He was ripping on them (when does he not rip into TTWO?) on CNBC earlier in the day, surprised we missed this article yesterday.

Yes, Herb is ALWAYS ripping on TTWO.

Of course the story is even much bigger than that. Herb Greenberg has been implicated with having substantial ties with Rocker Partners & Marc Cohodes . . . the holders of a massive chunk of the 30 million shares short position.

The standard operating procedure went something like this . . . Cohodes/Rocker would research companies, find one they didn't like, massively short its shares . . . then turn over their research to Greenberg who would then publish the research such that public story would kill the stock and Rocker/Cohodes made big profits.

They pulled their routine on TTWO several years back and it almost worked since TTWO was quite sleazy at the time . . . however, GTA 3 became a massive hit that saved the company. Rocker/Cohodes has been stuck with much of that short position ever since. And Herb has continued to try to help them by bashing when ever he can find anything.

So, in summary, take what Herb says with a grain of salt. He spins everything negative against TTWO. His blog posting the other day was pretty funny . . . he was trying to point out that it was just illogical for ERTS to even want to buy TTWO . . . just look at the negative things ERTS was saying about TTWO! (Uh . . . duh, Herb. Of course they want to make the company they want to buy look bad . . . they want to buy it cheap.)

The TTWO saga is a soap opera that I've followed for years but still don't fully understand. But one thing I do know is that Herb's opinion on TTWO is completely biased and not to be trusted.

 

[LJ11]

But one thing I do know is that Herb's opinion on TTWO is completely biased and not to be trusted.

I find this ironic. :lol j/k

I'm not agreeing or disagreeing with you, everything he wrote about is in the filing

 

[squatingyeti]

Yes, Herb is ALWAYS ripping on TTWO.

Of course the story is even much bigger than that. Herb Greenberg has been implicated with having substantial ties with Rocker Partners & Marc Cohodes . . . the holders of a massive chunk of the 30 million shares short position.

The standard operating procedure went something like this . . . Cohodes/Rocker would research companies, find one they didn't like, massively short its shares . . . then turn over their research to Greenberg who would then publish the research such that public story would kill the stock and Rocker/Cohodes made big profits.

They pulled their routine on TTWO several years back and it almost worked since TTWO was quite sleazy at the time . . . however, GTA 3 became a massive hit that saved the company. Rocker/Cohodes has been stuck with much of that short position ever since. And Herb has continued to try to help them by bashing when ever he can find anything.

So, in summary, take what Herb says with a grain of salt. He spins everything negative against TTWO. His blog posting the other day was pretty funny . . . he was trying to point out that it was just illogical for ERTS to even want to buy TTWO . . . just look at the negative things ERTS was saying about TTWO! (Uh . . . duh, Herb. Of course they want to make the company they want to buy look bad . . . they want to buy it cheap.)

The TTWO saga is a soap opera that I've followed for years but still don't fully understand. But one thing I do know is that Herb's opinion on TTWO is completely biased and not to be trusted.

Spoken like a man that does his DD. I must ask you, does your job involve any of this? *a little disclosure, mine does.* Or are you just a long time investor?

 

[speculawyer]

Spoken like a man that does his DD. I must ask you, does your job involve any of this? *a little disclosure, mine does.* Or are you just a long time investor?

No . . . just long time investor and avid videogame player. I managed to combine the two and turn my gaming hobby into useful research in investing. But I haven't been as heavy into the investing as I used to be.

 

[speculawyer]

I find this ironic. :lol j/k

I'm not agreeing or disagreeing with you, everything he wrote about is in the filing

Yes, he is citing stuff out of the filings. However, he assigns motives to people to fulfill his own agenda. Virtually every exec comp package can be viewed as very anti-shareholder. So Herbs found things and painted a picture of 'Management is trying to screw you . . . sell, Sell, SELL!'. He's been saying the same thing for years now. He's been saying the same thing despite a complete change in management.

 

[squatingyeti]

No . . . just long time investor and avid videogame player. I managed to combine the two and turn my gaming hobby into useful research in investing. But I haven't been as heavy into the investing as I used to be.

Good investment strategy. You know about games, why not take advantage of that? Fortunately, I was able to show enough knowledge in the area to have that make up a lot of what I do.

By the way, everyone will ignore what you say about Herb. I'd like to throw my shoe in and say he certainly isn't without agenda. There is definitely some amount of bias involved.

 

[LJ11]

It's easy to say Herb has an agenda, he beats the drum every time he opens his mouth about Take Two. Taking a big steaming dump on Take Two is what he does best.

Irrespective of his bias, some may say opinion, the filing and timing is pretty interesting information nonetheless.

 

[speculawyer]

Good investment strategy. You know about games, why not take advantage of that? Fortunately, I was able to show enough knowledge in the area to have that make up a lot of what I do.

It has largely worked well. But it is getting harder and harder to do since the number of players now is so small. I used to move money around depending on who I felt was going to do good and who was going to do poorly. But these days there are just so few 3rd party publishers left.

 

[squatingyeti]

It has largely worked well. But it is getting harder and harder to do since the number of players now is so small. I used to move money around depending on who I felt was going to do good and who was going to do poorly. But these days there are just so few 3rd party publishers left.

Not sure if you already do this or not, but a great strategy now is options. You're correct with there being less and less to choose from as EA and company swallow everyone. However, you can enhance your choices by shorting a company instead of just exiting a position and trying to find the company that will do the best over the next year or quarter or how ever long you invest in them.

Not that I want any of the companies to go down, but reality is reality and shorting is often a good option when you feel they have peaked.

 

[yoopoo]

http://www.eatake2.com/faq.htm

Why does EA want to acquire Take-Two?
We have enormous respect for the creative teams at Take-Two. We think we can provide those teams with a stable creative environment, a strong publishing partner with a global and more comprehensive publishing platform that includes packaged goods, online and wireless, capital to invest in the growth of existing and new game franchises, and a team of executives that know the game industry well. Most of all, we can offer them the creative freedom to do what they do best – make great games.

Would the R* team be happy at EA?
We think so. We have great respect for the R* leadership team and some of our executives have worked with R* leaders while in previous positions with other companies. We believe EA’s decentralized label organization will be attractive to Take-Two’s creative talent.

Do you intend to kill or restrict any of the R* franchises?
We strongly believe that behind all the controversy is a core of great intellectual property and development talent. These titles don’t sell millions because they’re controversial; they sell because they’re great games. We have no plans to change that.

Would you kill 2K Sports?
Any integration starts with our respect for the teams and people that make great games. Beyond that, it’s too early to discuss plans for managing Take-Two.

 

[KTallguy]

Wow... EA is really gobbling them up. They will truely 1up Activision at this point.

 

[davepoobond]

i have a question about this article:

http://www.gamesindustry.biz/content_page.php?aid=33521

specifically this quote:

As Rockstar's contract with Take-Two ends in February 2009, Pachter suggests that should the EA/Take-Two deal fall through, there would likely be a bidding war for the services of Rockstar next year, to develop a rival to the Grand Theft Auto franchise.

WTF???? I thought Rockstar was OWNED by Take-Two. Why would they need a CONTRACT with them in that capacity?