BREAKING: EA Extends Take-Two Takeover Deadline
BREAKING: EA Extends Take-Two Takeover Deadline
May 19, 2008
In a move that will surprise almost no one, Electronic Arts (ERTS) has just issued a press release announcing a 30-day extension of its May 16th deadline to purchase outstanding shares of acquisition target Take-Two Interactive (TTWO). The new deadline will expire at 11:59 p.m. on June 16th.
The most noteworthy point in EA's press release is that the offer price has not changed. There had been speculation that EA would sweeten the numbers, but that hasn't happened - at least, not yet. The announcement quotes Senior VP Owen Mahoney:
Extending our offer will allow the FTC review process to continue. EA's offer price remains unchanged at $25.74 per share and our offer is still subject to conditions that include regulatory approval. As stated earlier, we retain the right to terminate the offer if the conditions are not satisfied.
EA reports that, as of last Friday, it had acquired 6.2 million shares of T2. With about 77m shares of T2 outstanding, EA would need to acquire roughly another 33m shares to acquire a majority position.
A PUBLICATION OF THE ECA
SUBSCRIBE
LOGINGamePolitics ShoutBox
Posted 11/20/08 at 10:47am
PHX Corp: looks like the kids are getting a more proper punishment in canada for nuking a cat
PHX Corp: looks like the kids are getting a more proper punishment in canada for nuking a cat
Posted 11/20/08 at 10:45am
PHX Corp: http://kotaku.com/5094143/judge-bans-teens-from-video-games-for-cat-killing
PHX Corp: http://kotaku.com/5094143/judge-bans-teens-from-video-games-for-cat-killing
Posted 11/20/08 at 10:27am
Shadow D. Darkman: @zel: Found it.
Shadow D. Darkman: @zel: Found it.
Posted 11/20/08 at 10:26am
zel: its at the bottom of the GTA 4 comments.
zel: its at the bottom of the GTA 4 comments.
Posted 11/20/08 at 10:25am
zel: Wow somehow while posting my message got posted like 6 or 7 times, anyone on that can delete the extra ones? O.o sorry bout that
zel: Wow somehow while posting my message got posted like 6 or 7 times, anyone on that can delete the extra ones? O.o sorry bout that
Posted 11/20/08 at 10:13am
ddrfr33k: @Alevan: It's the only way to fight dirty against PETA.
ddrfr33k: @Alevan: It's the only way to fight dirty against PETA.
Posted 11/20/08 at 09:52am
Shadow D. Darkman: @Alevan: Hey, Amy!
Shadow D. Darkman: @Alevan: Hey, Amy!
Posted 11/20/08 at 09:44am
Alevan: Love how Mejasco is taking the parody game lightly and with a sense of humor.
Alevan: Love how Mejasco is taking the parody game lightly and with a sense of humor.
Posted 11/20/08 at 09:42am
DeepThorn: Good morning
DeepThorn: Good morning
Posted 11/20/08 at 09:40am
Alevan: Good morning everybody!
Alevan: Good morning everybody!
Posted 11/20/08 at 09:36am
JDKJ: @Austin_Lewis: Perhaps. But rest assured that, as I always do, I'm giving it 100%.
JDKJ: @Austin_Lewis: Perhaps. But rest assured that, as I always do, I'm giving it 100%.
Posted 11/20/08 at 09:32am
Austin_Lewis: @JDKJ:come on, that was weak. @GP: Go to a real Roadhouse. It's a 50/50 they'll be awesome. Also, that city has gone downhill,
Austin_Lewis: @JDKJ:come on, that was weak. @GP: Go to a real Roadhouse. It's a 50/50 they'll be awesome. Also, that city has gone downhill,
Posted 11/20/08 at 09:03am
DeepThorn: Everyone should go to that PETA game site and click Ask Mama for Vegan Recipes, then change the subject and content text with animal based.
DeepThorn: Everyone should go to that PETA game site and click Ask Mama for Vegan Recipes, then change the subject and content text with animal based.
Posted 11/20/08 at 08:57am
sqlrob: @Novablack: If you're talking to me, it's a local Austin chain. I hit the one on Spyglass
sqlrob: @Novablack: If you're talking to me, it's a local Austin chain. I hit the one on Spyglass
Posted 11/20/08 at 08:56am
BearDogg-X: @ NovaBlack: I still say that Capcom could have countersued since "Diary of the Dead" was basically a ripoff of Dead Rising.
BearDogg-X: @ NovaBlack: I still say that Capcom could have countersued since "Diary of the Dead" was basically a ripoff of Dead Rising.
Posted 11/20/08 at 08:43am
magic_taco: JT is still here?, Figures, I have to get back to my business class, Wish you guys luck.
magic_taco: JT is still here?, Figures, I have to get back to my business class, Wish you guys luck.
Posted 11/20/08 at 08:34am
NovaBlack: where is that?
NovaBlack: where is that?
Posted 11/20/08 at 08:27am
JDKJ: Big shout outs to my man, nightwng2000, for pulling, at his own expense, and sharing the Orders in Numbskull's federal case.
JDKJ: Big shout outs to my man, nightwng2000, for pulling, at his own expense, and sharing the Orders in Numbskull's federal case.
Posted 11/20/08 at 08:02am
NovaBlack: http://www.gamasutra.com/php-bin/news_index.php?story=21188
NovaBlack: http://www.gamasutra.com/php-bin/news_index.php?story=21188
Posted 11/20/08 at 08:02am
NovaBlack: capcom triumphs in dead rising copyright infringement case (by dawn of the dead producer)
NovaBlack: capcom triumphs in dead rising copyright infringement case (by dawn of the dead producer)
Copyright © 2007 ECA. All rights reserved.
Game Politics and Game Politics logo are trademarks of the ECA.
Game Politics and Game Politics logo are trademarks of the ECA.
Comments
T2 currently trading at $27.10, which is just south of its lifetime high. Zelnick is playing this one nicely so far. The big concern is EA's 6.2 mil shares. That means they've pretty much gone hostile, even though they have nowhere near enough capital to do it.
Which is likely why EA is charging the ridiculous sum of $20 for a Sims furniture pack download.
This will never end....
Offering less than current market price? Cunning strategy
To be fair, the current market price is in large part because of EA's offer. It's only gone up a dollar since the bid.
Actually, it's in large part due to GTA 4. When EA first made the offer days and days ago, the stock went up, then back down again. It went back up in recent days after the release of their A-list title.
Ah, but they wouldn't be EA if they actually consentrated on making better games instead of trying to buy out every source of competition under the sun.
EA Fuck off already you monopolistic pricks!
We don't want you clowns buying out another good company and ruining of all it's good franchises.
Take Two called EA's bluff twice. It's hilarious.
Anyway, Take Two is as good as taken already. The price is still hovering around the buyout offer levels, and EA's got the $1B secured loan. Take Two is done. It's just a matter of time.
That's what analysts like Hackter kept saying about their first attempt when they couldn't even get 15% of the shares they needed and they were wrong yet again. Take-Two doesn't want to be sold and neither do the majority of its shareholders. And with GTA4 breaking even their own very high revenue expectations, I don't blame them. It's quite possible that EA's offer won't ultimately be enough. I think by perpetually extending their offer like this, EA is looking foolish and much like Microsoft with Yahoo, they need to learn to admit when they're defeated and bow out gracefully. Don't forget, the FTC is also investigating possible monopoly concerns over this deal as EA would basically own sports gaming in its entirety. This deal is far from done or guaranteed. Don't believe analysts.
"We want to buy you out. We're giving you until the end of March to decide if you want to do it."
"Ok, so now, because we're generous, we're going to give you until the middle of April."
"Ok, so... we're being real compassionate here for your situation, so.... the end of April."
"Alright, alright... final chance, middle of May."
"You're driving a hard bargain, we're going to extend until the middle of June."
et. al.
At some point, you think they'd just say:
"Just so you know, the offer is still on the table. If you decide to ever accept it, we're waiting here with baited breath. Signed, EA (P.S.: We have punch and pie)"
"I'm not responcabel fer my comuter's spleling errnors." -- Xlorep DarkHelm
I seriously fucking HATE EA.
LEAVE T2 ALONE!
Once again Take 2 has rejected EA's offer
http://www.next-gen.biz/index.php?option=com_content&task=view&id=10548&Itemid=2
E. Zachary Knight
www.editorialgames.com
Oh for fuck sake, they have no idea what the fuck they are doing, do they? Now they're just effing around and wasting time.
-GRIZZAM PRIME(c)is property of the U.S. Marine Corp. Wetworks Dept., and also The Incredible Hulk-GRIZZAM PRIME is not to be associated with GRIZZAM 512 or any other GRIZZAM entity under penalty of law, so sayith ZARATHOS.
EA will have TT no matter what- they are determined to own a huge amount of the industry.
The only problem will be the massive exodus of R* talent after the takeover.
Expect GTA5 to be made by Pandemic or some other internal studio...
EA please give it up
Are you sure it wasn't the conflict of interest? I mean, come on. You owned stock in the very company you are trying to destroy.
E. Zachary Knight
www.editorialgames.com
I call dupe.
At least he figured out what the 'your name' box is for...
Very good... have you figured out what 'dupe' call is for?
Hint: It's probably Shadowman again
I am taking this as a response to my comment.
I understand alright. The whole, "Keep your friends close, but your enemies closer" thing.
I just find it funny that you never used that leverage at all. You always claimed to be going to share holder meetings, but never did. So what was the true purpose of holding onto that stock?
PS: Sorry For the Double Post. Had to add it with John Bruce's double post. For consistancy's sake.
PSS: Also, might I add, you have also bout all their games, and have attempted to get pre release copies of them as well. Sounds like someone is a closet fan.
E. Zachary Knight
www.editorialgames.com
Was that before or after you sold your soul?
So you just made the most money you ever will off of your crusade to destroy them?
-kurisu7885
I find it hard to believe that you really owned Take-Two stock? If so, why not attend the stock holder meeting you claimed to attend a while back? We know better to believe anything you say JT.
So I guess that makes you 25 dollars richer!
That would make this your biggest win to date!
@EA
predictable
@Take 2
continnue farting in their general direction.
EA, even if they do produce some great games, they ruined some old franchise.. CnC3, EA... My i've got my mammoth Mk II aimed at you!
I almost respect EA for their sheer persistence. The fact that they're stupid enough to keep extending the deadline every time it passes cancels that out.
You'd think it'd be clear by now that neither Take Two, nor it's investors are willing to be bought out for such a low price. They've got a good thing going for them, new management is getting things turned around, and it's unlikely things will take a down turn in the near future.
The bottom line is that they aren't interested in a merger, or in being bought out for an undervaled price. EA's reputation for ruining game franchises doesn't help them either. Sure we hate it as gamers, but think about it from an investor's standpoint. EA has a history of buying game studio's with popular franchises, forcing them to put out low quality game of those franchises, then closing the studios and firing any remaining employees when the game produced from EA's mismanagement fails, and killing the franchise. Does that sound like the sort of thing any investor you know of would want much of a part of?
Ah, EA's going for the announcement that it will extend the deadline for beating a dead horse!
*sigh* So when are the EA stockholders going to rise up as one and throw their chairmen out on their kiesters for dragging this on and on and on?
Last year I had taken a class for my job and the teacher was telling us about how EA invites all of the families of the local emergency services (911,police,fire,and ambulance) to their corporate office for a giant picnic. Apparently they give the children free games if they have good grades in school. I thought this was a great thing of them to do and it gained a lot of respect from me for EA when I heard about it. Crap like this though really makes it hard to continue to respect this company.
I don't want this merger to happen just like everyone else. If R* doesn't walk because of the merger, I'm pretty sure that EA won't try to censor content in any of their games, especially GTA. If EA does try to take any creative control they would just be shooting themselves in the foot and risk loosing R*, as well as the many fans of R*. Like Me.
You seem to imply that EA will take over T2 though. It sure seems to me that no one is going for this deal, I think we're safe here, for now
Oh please. We all know why EA's so desperate. Take Two is the only obstacle that stands between them and total sports domination.
Anybody down for some Grand Theft Auto 5: Spring Edition? Just make sure you preorder your copies of GTA5: Summer Edition, Fall Edition, and the GTA5.1: Winter Edition Trilogy Set. All games will be available in both a standard and special edition.
Just what does the special edition have that the standard edition doesn't? Well, each special edition comes with a visit from EA's very own local tatoo artist who will etch a unique barcode onto your forehead. In addition, EA is also including the new E-Reader/Barcode scanning device so that we can track all of your activities, not just in-game stuff anymore! How will this improve your entertainment experience? We don't know, and we could really care less. Let's not forget that each special edition comes with a neato cardboard slipcover. The slipcover may not actually match the game that you're buying but we're EA, STFU. Ignore Take-Two's slipcover that came with the standard version of Bioshock, they don't know a damn thing about good games and the special relationship between slipcovers and special editions.
On a more serious note, I can actually see this happening should EA continue to acquire stock in T2 and it's quite frightening. It's not just the uncontrolled absorption, but the way I believe EA is beginning to affect other publishers into pulling the same stunt. Just look at Ubisoft who appears to be following EA's quick release model (Prince of Persia series, Splinter Cell series, Rainbow Six series). Sure they're are a lot of great games, but the flow of garbage has increased significantly.
Does anyone know what the regulatory bodies have been thinking about this deal? Is there any hint that they will reject the takeover? Why does this remind me so much of the old G4-TechTV hostile takeover awhile ago? I hope it doesn't end just as badly.
---- There is a limit for both politicians against video games, and video games against politicians.
How long until EA breaks a few antitrust laws?
I am taking this as a response to my comment.
I understand alright. The whole, "Keep your friends close, but your enemies closer" thing.
I just find it funny that you never used that leverage at all. You always claimed to be going to share holder meetings, but never did. So what was the true purpose of holding onto that stock?
E. Zachary Knight
www.editorialgames.com
It's almost a half a year now and they still have not givin up. Desperation is not going to win anybody over to EA's side unles they have a gun to their head.