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Take-Two shareholders slash stakes

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http://news.yahoo.com/s/nm/20080311/bs_nm/taketwo_oppenheimer_dc

SAN FRANCISCO (Reuters) - The two biggest owners of shares in Take-Two Interactive Software Inc (TTWO.O) said on Monday they drastically cut their stakes in the video game publisher, potentially undermining management's stance that a $1.9 billion buyout offer from Electronic Arts is too low.


U.S. mutual fund company Oppenheimer Funds, Take-Two's biggest shareholder, halved its holdings to 8.8 million shares, or 11.5 percent, down from the 23 percent stake it held previously, according to U.S. regulatory filings.

FMR LLC, the parent company for the Fidelity mutual funds that was the second-largest owner of Take-Two shares, also reported that it had slashed its stake to 2.75 percent from 14.7 percent.

"To the extent there was speculation that shareholders would band together and hold out for more money from EA, that's kind of shot down now," said Wedbush Morgan analyst Michael Pachter.

"They are voting on this deal and they are voting with their feet. They know they have no leverage," Pachter said.

The company is seeing other signs of shareholder unrest.

A shareholder lawsuit in a Delaware court accuses Take-Two management of "breaches of fiduciary duty" for refusing to explore EA's offer, arranging a large payout for executives if the company is acquired, and other matters, according to court documents seen on Monday.

Shares in Take-Two fell 2.8 percent to close at $24.85 on Nasdaq. Neither Oppenheimer nor FMR said why they sold their shares, and Take-Two declined to comment on the sales.

Two weeks ago, Electronic Arts Inc (ERTS.O) said Take-Two, which makes the lucrative "Grand Theft Auto" games, had spurned its purchase offer of $26 a share that was a 50 percent premium to the stock's previous closing price.

Take-Two management said EA's offer was too low given that it was on the cusp of launching "Grand Theft Auto IV." The new game goes on sale April 29 and is expected to retail for $60.

Take-Two, which is set to report first-quarter earnings on Tuesday, also said last week that it had adopted a separate severance plan for employees who might get fired in the event the company was bought.
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EA is putting the squeeze on Take-two shareholders, me thinks that EA is trying to pull the strings of Take-Two shareholders and telling them to trust them. I still say that MS, or another "white" knight is looming too, besides EA, as I'm sure MS and Sony wouldn't want the GTA franchise to fall into EA's hands.
 
Take2 will be worth more in the future if they are not bought. EA knows this. I sold my shares because it was good profit, but I wish EA fails.
 
NolbertoS said:
EA is putting the squeeze on Take-two shareholders, me thinks that EA is trying to pull the strings of Take-Two shareholders and telling them to trust them. I still say that MS, or another "white" knight is looming too, besides EA, as I'm sure MS and Sony wouldn't want the GTA franchise to fall into EA's hands.
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My question is would either of them be willing to spring that kind of money? MS can afford it but they're not in acquisition mode, Sony can't afford 2 billion, and neither of them can afford to piss of EA like that. Nobody in the industry can afford this kind of numbers.
 
In before speculawyer sniping at Pachter's comments in the OP.

Snaku said:
One EA console future is a comin.
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This is probably the maximized intersection of "extremely popular meme at GAF" with "totally defying all logic and sensical analysis."
 
NolbertoS said:
EA is putting the squeeze on Take-two shareholders, me thinks that EA is trying to pull the strings of Take-Two shareholders and telling them to trust them. I still say that MS, or another "white" knight is looming too, besides EA, as I'm sure MS and Sony wouldn't want the GTA franchise to fall into EA's hands.
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Actually I think they relish the thought of a GTA game every year.
 
NolbertoS said:
Sony wouldn't want the GTA franchise to fall into EA's hands.
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That is the best case for both. They spend no money and will get GTA forever. EA will support both consoles. Another taker might of put GTA exclusive rights up for auction.
 
If it sells as much as the previous title, GTAIV alone is worth $1.9 Billion. I wonder why everyone is getting so anxious to sell off Take 2.
 
SapientWolf said:
If it sells as much as the previous title, GTAIV alone is worth $1.9 Billion. I wonder why everyone is getting so anxious to sell off Take 2.
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Because the business side of Take Two is operated by incompetent morons and the business is still wracked with the irresponsible and possibly illegal activities of the previous management.

A studio or publisher can make the greatest games in the world but if they fuck up on the business side, they won't be able to keep that up. Take Two is the perfect example.

Also, people thinking that there is some supposed White Knight or some other purchaser who is going to come in and offer TT shareholders more than EA are either really ignorant of business or delusional. TT will ALWAYS be worth more to EA than any other publisher for the sole reason of their sports line up.
 
tanod said:
Because the business side of Take Two is operated by incompetent morons and the business is still wracked with the irresponsible and possibly illegal activities of the previous management.

A studio or publisher can make the greatest games in the world but if they fuck up on the business side, they won't be able to keep that up. Take Two is the perfect example.

Also, people thinking that there is some supposed White Knight or some other purchaser who is going to come in and offer TT shareholders more than EA are either really ignorant of business or delusional. TT will ALWAYS be worth more to EA than any other publisher for the sole reason of their sports line up.
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I think the lack of competition is going to hurt EA in the end, because the best years for console football was when NFL2k was released and basically reinvented passing.
 
SapientWolf said:
I think the lack of competition is going to hurt EA in the end, because the best years for console football was when NFL2k was released and basically reinvented passing.
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Well thats why EA bought out the NFL. They were beat in every aspect of the game from gameplay to graphics in 05.

Without the competition EA doesn't suffer at all, knowledge football fans suffer. Casual football fans will still buy Madden because they think it's normal to drop back 20 yards with a QB and throw a pin point pass while running sideways, or it's normal for DB's to warp to the ball, or its normal for a offensive line not to make a pocket.

The best thing EA could of done for EA was to buy the football license. They have broken sales records with Madden 06, 07, and 08. Does't matter it's a shitty game. Doesn't matter it's not sim. What matters is it's what people are familiar with. People would rather be good at a bad game then be bad at a good game and thats exactly why Madden is the same year in and year out.
 
$230 per share at the moment. Not too shabby. I believe it'll take off closer to GTA VI release.

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Stock Information | Take-Two Interactive Software, Inc.

Stock information for Take-Two Interactive (TTWO) including historical price lookup and investment calculator.
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