T2 Tells Shareholders To Reject EA's Hostile Offer
T2 Tells Shareholders To Reject EA's Hostile Offer
March 26, 2008
Hot off the wires...Take-Two (TTWO) has issued a press release in which it recommends that company shareholders reject a $26 tender offer by would-be acquirer Electronic Arts (ERTS). The EA bid is termed "inadequate in multiple respects and contrary to the best interests of Take-Two’s stockholders."
The release also claims that T2 will begin a "review of stragetic alternatives" following the April 29th release of Grand Theft Auto IV:
The Company has received indications of interest from third parties with respect to possible business combination transactions [i.e., mergers]... but no substantive discussions have yet occurred... Prior to the release of Grand Theft Auto IV, the Company is willing to enter into confidentiality agreements on customary terms and to engage in preliminary conversations with interested parties, including EA.
Chairman Strauss Zelnick is quoted in the press release:
Take-Two’s Board of Directors and senior management team were put in place less than one year ago with one mandate: maximize stockholder value. We have maintained a single-minded focus on that goal ever since and it remains the guiding principle in every decision we make with regard to Take-Two. Our Board, after careful review, has unanimously determined that Electronic Arts’ offer continues to provide insufficient value and remains opportunistically timed to capture the value of the upcoming Grand Theft Auto IV launch at the expense of our stockholders.
An article in today's New York Post quotes Goldman Sachs analyst Mark Wienkes:
We believe [EA's] shares already incorporate a modest bump. We think its rational to expect a higher bid.
Webdush-Morgan analyst Michael Pachter suggested T2 consider peace talks:
If Take-Two approaches EA about how to make this a friendly deal, they have a chance at getting EA to increase its bid.
Meanwhile, Sterne Agee analyst Arvind Bhatia foresees only a small bump in EA's offer price:
We see EA eventually raising the bid, but only slightly. . . $1 or $2.
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Posted 07/04/09 at 07:58pm
GoodRobotUs: Which seems to be the only point Jack proved, that some people find some games offensive. i.e. Nothing.
GoodRobotUs: Which seems to be the only point Jack proved, that some people find some games offensive. i.e. Nothing.
Posted 07/04/09 at 07:57pm
GoodRobotUs: The discussion was supposed to be whether games were dangerous not 'Do you find some games offensive'...
GoodRobotUs: The discussion was supposed to be whether games were dangerous not 'Do you find some games offensive'...
Posted 07/04/09 at 07:55pm
GoodRobotUs: Some agreed, some didn't, but it was their choice to make, not the governments.
GoodRobotUs: Some agreed, some didn't, but it was their choice to make, not the governments.
Posted 07/04/09 at 07:55pm
GoodRobotUs: By asking the audience their opinion, he more or less proved that it's a matter of personal choice
GoodRobotUs: By asking the audience their opinion, he more or less proved that it's a matter of personal choice
Posted 07/04/09 at 07:55pm
GoodRobotUs: Meh, he ended proving Mark's point for him
GoodRobotUs: Meh, he ended proving Mark's point for him
Posted 07/04/09 at 07:26pm
Erik: Jack if you are reading this you are a LIAR. There is no legal weight to the MPAA's ratings.
Erik: Jack if you are reading this you are a LIAR. There is no legal weight to the MPAA's ratings.
Posted 07/04/09 at 07:24pm
JDKJ: I still think my buddy the midget who rides a unicycle backwards while juggling four bowling pins would have been a much bigger hit with that crowd. And he can make up statistics and misinterpret studies, too.
JDKJ: I still think my buddy the midget who rides a unicycle backwards while juggling four bowling pins would have been a much bigger hit with that crowd. And he can make up statistics and misinterpret studies, too.
Posted 07/04/09 at 06:33pm
Alyric: Of course, Mark falls into the common trap about Columbine, which had nothing to do with bullying, etc. See: http://slate.msn.com/id/2099203/?GT1=3256 for a more thorough explanation.
Alyric: Of course, Mark falls into the common trap about Columbine, which had nothing to do with bullying, etc. See: http://slate.msn.com/id/2099203/?GT1=3256 for a more thorough explanation.
Posted 07/04/09 at 06:32pm
PHX Corp: Read this http://www.destructoid.com/sgc-09-liveblogging-the-jack-thompson-debate-138502.phtml#ext
PHX Corp: Read this http://www.destructoid.com/sgc-09-liveblogging-the-jack-thompson-debate-138502.phtml#ext
Posted 07/04/09 at 05:54pm
PHX Corp: JT is afraid of such ban then advocates it That's what i call a total Hypocrite
PHX Corp: JT is afraid of such ban then advocates it That's what i call a total Hypocrite
Posted 07/04/09 at 05:50pm
PHX Corp: AE: JT is a -Bleeping- Jackass
PHX Corp: AE: JT is a -Bleeping- Jackass
Posted 07/04/09 at 05:07pm
Andrew Eisen: JT "knew it would be a good audience." Not what he said on Tuesday.
Andrew Eisen: JT "knew it would be a good audience." Not what he said on Tuesday.
Posted 07/04/09 at 05:01pm
Andrew Eisen: VG cause violent behavior. VG companies influence behavior to get sales. Yeah, that makes sense. (To be fair, the Twitter feed makes deciphering JT's point pretty tough.)
Andrew Eisen: VG cause violent behavior. VG companies influence behavior to get sales. Yeah, that makes sense. (To be fair, the Twitter feed makes deciphering JT's point pretty tough.)
Posted 07/04/09 at 04:52pm
Andrew Eisen: Yes, it's been proposed but as far as I know it has not been passed. Big difference.
Andrew Eisen: Yes, it's been proposed but as far as I know it has not been passed. Big difference.
Posted 07/04/09 at 04:50pm
Cheater87: http://www.gamezine.co.uk/news/formats/xbox360/all-violent-video-games-be-banned-in-germany-$1301757.htm
Cheater87: http://www.gamezine.co.uk/news/formats/xbox360/all-violent-video-games-be-banned-in-germany-$1301757.htm
Posted 07/04/09 at 04:49pm
Andrew Eisen: Far as I know, Germany has not banned all violent video games.
Andrew Eisen: Far as I know, Germany has not banned all violent video games.
Posted 07/04/09 at 04:44pm
Cheater87: Jack wants the US to follow Germany's total video game ban.
Cheater87: Jack wants the US to follow Germany's total video game ban.
Posted 07/04/09 at 04:42pm
Andrew Eisen: Note to JT, it is not illegal to sell kids a ticket to R-rated movies.
Andrew Eisen: Note to JT, it is not illegal to sell kids a ticket to R-rated movies.
Posted 07/04/09 at 04:39pm
Cheater87: Jack said we would be better with no rating sytem.
Cheater87: Jack said we would be better with no rating sytem.
Posted 07/04/09 at 04:35pm
Alareth: So what was the introduction used for Jack?
Alareth: So what was the introduction used for Jack?
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Game Politics and Game Politics logo are trademarks of the ECA.
Comments
I'm out of the loop. Has there even been mention of GTA V? Long ago, I had heard GTA IV was the last of the series.
Nightwng2000
NW2K Software
Regardless, stockholders would be completely insane to sell stock just BEFORE something that is practically guaranteed to be a massive hit
People don't hold stock in a company because they like the product line or the company, they're not doing it out of the goodness of the hearts, they're hoping to make some money. The only question is, do they think they can make more money by holding onto it, or by selling to EA?
Understood. But come at it from a slightly different angle. Imagine if you will, how many of T2's shareholders, do you suppose, are gamers? Of those people, how many do you suppose, care about GTA4 beyond what the company promises them?
Not having a huge background in the subject, I don't honestly know what having a solid release title does for a company's stock price. Although I did hear some rumors that Bioshock did wonderful things for 2K last year. That said, buyout offers almost always drive stock prices through the roof. Since EA announced their intentions to acquire take2, T2 is up 40%; and the actual sale hasn't even occurred yet. Also, consider, if EA does acquire T2, it's not like that means they WON'T launch GTA4. Quite the contrary. GTA4's probably the main reason they want to acquire T2. So consider, if you're a shareholder, why shouldn't you get the benefits from both the buyout AND the GTA4 launch?
I don't know anyway who thinks EA getting their hands on T2 is a good thing, well aside from a certain hack and maybe idiots on Wall Street. Hopefully Rockstar has a "out clause" and can retain their properties. 2K games though is probably screwed.
The way EA is going, not only would they put in real-world ads, but they'd also likely take out the best cars and weapons, instead requiring you to purchase them as microtransactions.
The thought of that makes me cringe...
When GTA San Andreas was released, TTWO stock reached the mid $30s. And it was ONLY released on the PS2.
GTA IV is going to be released on both the PS3 and XBox 360... and it's going to have episodic content released via "xbox live". I can assure you TTWO stock will easily, once again, reach the mid $30s and will most likely hit the $40s.
EAs $26 a share offer is a joke. Unfortunately, I'm not laughing. I fear most of the share holders are probably going to be duped, which is quite unfortunate.
What kind of a dumb stock holder would agree to this deal???
C&C 3, I love the game won't lie but they made the world SHINEY and pretty, the world in C&C Firestorm was desolate and cumbling.
MoH, honestly needs to die, love the series but my god whats the tally at now? 32, 33 MoH? My god let it die.
Maybe I'm biased towards EA.
OK - I defer to your experience and recant some of my theories. I still believe the sale will go through eventually, but I honestly have no idea what GTA4 would do to the price, or how to compare it to the 40% it hiked when EA tried to acquire them. My assumption that it's possible to have the best of both worlds is based on the idea that EA can be cornered into paying more pre-GTA4 then they can post.
I'm sticking to my underlying theory though, I still believe the only relevant question is whether or not T2's stockholders make more money for themselves by holding out, or selling to EA. I have no love for EA, and I'm certainly not crazy about them continuing what amounts to a godzilla like rampage across the industry (especially leaving a swath of closed development houses in their wake). I just believe that what's best for the industry won't be the deciding factor. Will be all about $'s.
As was mentioned, the kind that doesn't know squat about the company behind the stock they hold. The kind that sees short-term profit instead of long-term, or even next week.
Which reminds me, anyone know where I can get a 2008 Model T? I've heard great things about their earlier models!