EA Extends Take-Two Acquisition Deadline

June 17, 2008 -

As expected, Electronic Arts has extended its tender offer for outstanding shares of Take-Two Interactive.

EA issued a press release this morning announcing that yesterday's deadline has been extended to July 18th. EA exec Owen Mahoney is quoted in the press release:

Our offer price remains unchanged at $25.74 per share, which is a substantial premium to where Take-Two's stock was trading prior to our offer. We congratulate Rockstar on the successful launch of GTA IV but believe our offer reflects a full and fair price based on the long-term value of Take-Two's entire operation.

EA also noted that extending the deadline will permit the Federal Trade Commission's review of the proposed merger to continue. Based on the number of shares reported tendered, EA has made no progress since the last extension.

UPDATE: Not unexpectedly, Take-Two has issued a press release urging sharholders to reject EA's offer.


Comments

Re: EA Extends Take-Two Acquisition Deadline

Nobody except EA and Jack Thompson want this aquisition to go through. One thing EA are not good at are making quality games, franchise everything seems to be their motto.

If EA buys Take Two we will see yearly or every 2 years, rushed low quality watered down BioShocks, Elder Scrolls, GTA's Bully's, and EA Sports having a monopoly in the sports genre.

Correct me if I am wrong but didn't Tecmo do the best Gridiorn (Tecmo Super Bowel) and Soccer (Tecmo World Cup) games at one point? Didn't Midway do the best basketball game (NBA JAM)?

 

Re: EA Extends Take-Two Acquisition Deadline

EA is becoming that durnk per sistant guy at the bar wh orefuses to give up.

-kurisu7885

Re: EA Extends Take-Two Acquisition Deadline

predictable as the rising sun.

Here are we -- and yonder yawns the universe.

Here are we -- and yonder yawns the universe.

Re: EA Extends Take-Two Acquisition Deadline

It is a pointless deadline that just boosts Take Two's stock and will just keep them healthy until GTA4 hits PC version which will boost their stock again. Don't forget the DLC for the 360 that may come out in September. I think the deadline thing is just a way for EA to hope it works and makes people cave, but it is utterly stupid to extend the offer even once, it just shows how desperate they are, and they aren't willing to pay for the desperation by making a higher offer, which makes it less enticing.

Re: EA Extends Take-Two Acquisition Deadline

The word "deadline" has lost all meaning...

- Offer Made

- Offer Refused

- Offer Elevated

- Offer Refused

- Deadline Made

- Deadline Fails

- Extend Deadline, Offer Less

- Offer Refused

- Deadline Fails

- Extend Deadline

At what point did "deadline" become "do over" ?

Re: EA Extends Take-Two Acquisition Deadline

 

You are taking "deadline" the wrong context, I think. In this context, each "deadline" was simply how long the current offer would be available. What is so unusual about multiple deadlines for multiple offers?

Re: EA Extends Take-Two Acquisition Deadline

It's been the same offer throughout. They've just kept extending it as TT has declined to take them up on it.

Re: EA Extends Take-Two Acquisition Deadline

Not true. It may seem that way in retrospect, and it may work even out that way in practice, but techinically each offer and each corresponding deadline has been seperate and distinct. When the current deadline expires, EA may ammend its offer, extend its offer again, or stop making offers altogether. The current deadline is only how long the current offer is gauranteed. It does not suggest or deny anything about the possibility of future offers if the current offer is not accepted before the current deadline expires.

Re: EA Extends Take-Two Acquisition Deadline

Not suprising, really.  My full thoughts are posted in the previous EA/TTWO article.  Either way, the longer this goes, the less likely the merger will complete.

~~All Knowledge is Worth Having~~

~~All Knowledge is Worth Having~~

Re: EA Extends Take-Two Acquisition Deadline

As I said on Kotaku, f you EA, just give it up already, T2 has said time and time again that they don't want to be assimilated into your Borg collective.  Of course, we all know that the Borg are relintless when it comes to assimilating, the same way EA here is.

Re: EA Extends Take-Two Acquisition Deadline

See, this is why TT's stock holders are in no rush to sell. EA's made it clear that regardless of their "deadlines" that this is going to be a standing offer for quite some time. So shareholders aren't going to feel pressured to give in to EA's deal.

Particularly when TT's stock is trading at above EA's offer price, and will be for some time. Sure it's probably up in part due to their offer, but that doesn't mean that stock holders are going to except lower than current market value. Unless EA substantially raises their offer, this deal ain't going through anytime soon, regardless of whether or not the FTC approves. Take Two simple isn't interested in being bought at this time for the price EA's asking.

Re: EA Extends Take-Two Acquisition Deadline

Keep in mind that EA lowered their offer before extending the deadline the first time after they didn't get enough people to sell to them.

Re: EA Extends Take-Two Acquisition Deadline

Well, to be fair to EA, as I recall it wasn't so much as they lowered the offer as Take Two increased the number of shares in existence at the shareholder meeting, thus lowering the price per share.

Re: EA Extends Take-Two Acquisition Deadline

Becasue we all know that when you want to buy something and the otehr person doesn't want to sell, you lower your offer. Works everytime.

E. Zachary Knight
www.editorialgames.com

 

Re: EA Extends Take-Two Acquisition Deadline

In the business world, it actually works. EA is going to get Take Two, one way or another. It's inevitable. Maybe they will raise their price and prove what I'm about to say Null in this situation, but..


Being that it is an inevitability, Take Two has maximize their income from the deal. When the price is lowering, it puts pressure on them to cave sooner. Win win for EA.

But in this case, EA isn't really putting enough pressure and so Take Two can happily refuse their deal. I'm sure that will change soon, EA isn't going to let this slip by. Call them evil all you want, but they didn't get to where they are now by being a bad company on a business level.

Re: EA Extends Take-Two Acquisition Deadline

No, it isn't an inevitablity. Take Two is stonewalling, EA's refusing to raise their offer, and the FTC is mucking things up. As long as EA's offer is on the table, it's going to be quite a while before TT's stock drops to the point where EA's offer looks attractive. That's a lot of time for the EA to just give up, or for someone else to make a better offer.

Re: EA Extends Take-Two Acquisition Deadline

Yes, EA. Continue to act like an idiot. We all need the laughs right now.

E. Zachary Knight
www.editorialgames.com

Re: EA Extends Take-Two Acquisition Deadline

You could always watch re-runs of The Jack Thompson Experience

Re: EA Extends Take-Two Acquisition Deadline

They're probably hanging on hoping that take two's stock will bottom out after every man & his dog owns gta4 and before TT release anything else with the potential to be a substantial money earner. That way their shares will deflate in price, probably to the $20 mark & then a $25 price per unit will seem like a good play to shareholders.

Not that EA would be after what you might call end user shares, they'd probably want the bulk corporate shares that other companies own.

Re: EA Extends Take-Two Acquisition Deadline

Seems to me that EA has too much bargaining power in this deal.  I don't think it should be legal for the buying party to be able to extend the deadline of a deal that hasn't gone through.

 

Also, why do I have to do the captcha thing when I'm at school but not at home?

Re: EA Extends Take-Two Acquisition Deadline

Your school network is probably blocking cookies

Re: EA Extends Take-Two Acquisition Deadline

Makes sense.  Thanks.

Re: EA Extends Take-Two Acquisition Deadline

Why is this still news? There's being persistent and then there's being foolishly stuborn. Not only have they not figured out that shareholders want nothing to do with EA, they don't even offer up more cash per share. What the hell kind of business move is that?! It's been months already and no progress with their current offer, you're telling me the logical move is to keep sticking with a failing plan? Or are they completely aware of their failure and now just courting Take Two for the attention?

Re: EA Extends Take-Two Acquisition Deadline

Take Two stock closed at $26.40 per share yesterday.

EA's offer of $25.74 doesn't make a bit of sense if you're a shareholder.

Tip to EA: offer more than what the stock is trading for.  You might get a few more hits.  Until then, you're just a bunch of poseurs.

Re: EA Extends Take-Two Acquisition Deadline

I think it's probably a little more complicated than that.

First off, it's more than possible that EA's offer helped raise the price of the stock. Furthermore, trading isn't free for anyone who uses a broker, so shareholders don't make the exact, entire difference between any two prices. Additionally (Untouchable), I don't think it's quite correct to say any given shareholder would lose anything according to the difference between a market price and any given offer, as each shareholder's actual gain or loss is different and depends mostly on what that shareholder paid for his shares, and when, and how much he sells them for now. Also, as Pinworm points out, Take 2 stock would probably be selling relatively high right now anyway, since GTA4 is the company's biggest release by far of the past (or next) year or two. The expectation would be for it to drop at least a bit when GTA4 sales start to level out, even if EA keeps an offer on the table.

Anyway, EA is a lot of things, but when it comes to having the money and influence to buy pretty much anything it wants, "poseur" isn't really one of them, I don't think.

Re: EA Extends Take-Two Acquisition Deadline

So wait, Shareholders would make a loss of 65 cents if they sold to EA?

Hardly a good deal

 

-----------

IMA FIRIN MAH LASER!!!

IMA FIRIN MAH LASER!!!

Re: EA Extends Take-Two Acquisition Deadline

It's not that simple. Their stock is decent, now, because GTA 4 just released, but rest assured their stock will lower soon. Take Two, asside from the GTA 4 boost, is not a company with a good economic foundation.

Re: EA Extends Take-Two Acquisition Deadline

It's so high because of the EA take over bid from a couple months ago and has remained there but if EA did finally say "screw it" and quit it'd probably drop significantly.

Re: EA Extends Take-Two Acquisition Deadline

Bloody hell, when will EA give up? They are not buying out Take-Two anytime soon 

 

--------------------

IMA FIRIN MAH LASER!!!

IMA FIRIN MAH LASER!!!

Re: EA Extends Take-Two Acquisition Deadline

*sigh*  EA, give it up.  Take-Two's shareholders said they weren't intersted.  Using the FTC as an excuse makes you no less foolish for continuing to extend your deadling in the hope that their shareholders will "see the light."  You lost, deal with it.

 
Forgot your password?
Username :
Password :

Poll

Will Code Avarice's Paranautical Activity make its way back onto Steam?:

Shout box

You're not permitted to post shouts.
Neo_DrKefkawith a neutral party Moderating it. I've been waiting a long time for a GamerGate to happen but now all I want is the healing to start. Weird huh? Gamers don't need to be attacking gamers we should all be on the same side10/24/2014 - 12:39am
Neo_DrKefkaRight now from what I seen your tweet and the other guys tweet there are hard feelings. Until we start a dialogue with each other I think it will get worse before it will get better. I hope you guys work something out meet in a neutral stream10/24/2014 - 12:37am
Neo_DrKefkaThanks James. Even if a hot/hard headed person likes me thinks the public needs to sit down and discuss this together. We all might not agree right now but if the public does not start talking to each other we are not going anywhere.10/24/2014 - 12:36am
james_fudgeHey guys I had a nap because, getting old! I'll take a look.10/24/2014 - 12:01am
Matthew Wilsonjames needs to contact Totalbiscuit than10/23/2014 - 10:07pm
Neo_DrKefkaJames said earlier he went into a stream earlier informed them who he was and they didn't care. If James is trying to talk lets set something up?10/23/2014 - 9:38pm
Matthew WilsonTotalbiscuit has been trying for months, no one that is anti gg seems to want to talk with him on camera10/23/2014 - 9:20pm
Neo_DrKefkaHey James check your twitter. Check with Totalbiscuit see if you can get a round table discussion stream going see if he can get some pro gg people and you can get some gamejournopros. Both sides have been hurt, doxxed its time every1 sits down and talks10/23/2014 - 9:05pm
Matthew Wilsonthe wiiu will support up to 8 gc controllers http://www.smashbros.com/us/howto/entry10.html10/23/2014 - 7:50pm
quiknkoldmewtwo is a timed free exclusive. you can purchase him if you dont have both.10/23/2014 - 7:15pm
Neo_DrKefka@Monte A month and a half ago we had a lot of streams about solutions now all the streams are KingofPol styled rants about getting drunk. All Gamergate is about to many is for people to use the movement to jump start careers.10/23/2014 - 7:12pm
Neo_DrKefkaWhose stream where you in James?10/23/2014 - 7:02pm
Matthew Wilsonyup they are holding mewtwo hostage lol10/23/2014 - 5:59pm
MaskedPixelanteApparently Mewtwo is going to be a free download to anyone who bought both versions of Smash 4.10/23/2014 - 5:41pm
TechnogeekYou would also think that if GG gave a shit about journalistic ethics, Game Informer would have been the very first line of their boycott list.10/23/2014 - 5:32pm
MaskedPixelanteRidley confirmed for Smash Wii U... as a stage buddy like the Yellow Devil and flying man.10/23/2014 - 5:31pm
prh99Rather than trying to spin it as some sort of artistic choice, they should just say they don't want to rework the engine to either decouple the mechanics or make them work at 60fps.10/23/2014 - 5:25pm
Matthew Wilsonubisoft is made to look worse now. wiiu smash is 1080p 60fps lol10/23/2014 - 5:02pm
MonteYou would think that, if GG were really about journalistic ethics, their streams would be more conerned with Shadows of mordor(a REAL controversy involing a major publisher) than with the FALSE jounralistic controversy around Quinn10/23/2014 - 4:49pm
Andrew EisenHope so.10/23/2014 - 4:45pm
 

Be Heard - Contact Your Politician