Motley Fool Chides EA as "Runaway Groom"
Motley Fool Chides EA as "Runaway Groom"
June 21, 2008
Financial website The Motley Fool mocks Electronic Arts today.
Rick Aristotle Munarriz delivers the slap in a column recounting EA's seemingly endless campaign to acquire Grand Theft Auto publicher Take-Two Interactive:
What if you threw a wedding and nobody came? That's becoming the embarrassing reality... EA's latest tender offer to buy the Grand Theft Auto IV software hotshot expired on Monday, so what did EA do? It repeated the offer. Again.
For those scoring at home, this is the third time that EA has seen its tender offer... expire sorely undersubscribed. It gets worse with every passing month. EA had 6.4 million shares -- or less than 8% of the outstanding shares -- submitted during the first tender. EA now has just 6.1 million shares on board.
EA needs to step up and either raise its bid, dare Take-Two to seek out a better deal elsewhere, or just walk away. Anything else is just delusional.
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Posted 11/22/09 at 09:45am
ZippyDSMlee: JD:I think doc phill is still sout about the break up with his wife he dose not fill holes as much as make them bigger these day
ZippyDSMlee: JD:I think doc phill is still sout about the break up with his wife he dose not fill holes as much as make them bigger these day
Posted 11/22/09 at 12:06am
JDKJ: You should get Phil McCraken to help you spackle those banisters.
JDKJ: You should get Phil McCraken to help you spackle those banisters.
Posted 11/21/09 at 11:57pm
ZippyDSMlee: Oh in the pirate hunter article I need my song ieda heckled DS,JD,Beemon sic im !!!
ZippyDSMlee: Oh in the pirate hunter article I need my song ieda heckled DS,JD,Beemon sic im !!!
Posted 11/21/09 at 11:56pm
ZippyDSMlee: JD:no I am tried from prepping the banisters for painting , worked on them from 12 to 4 and 6 to 8...after I got back from the store...got up early got ready...blah...been up all day..I need a nap...
ZippyDSMlee: JD:no I am tried from prepping the banisters for painting , worked on them from 12 to 4 and 6 to 8...after I got back from the store...got up early got ready...blah...been up all day..I need a nap...
Posted 11/21/09 at 11:42pm
JDKJ: No. You gonna stay up late tonight soldering?
JDKJ: No. You gonna stay up late tonight soldering?
Posted 11/21/09 at 11:41pm
ZippyDSMlee: JDKJ:Don't you mean Mctite?
ZippyDSMlee: JDKJ:Don't you mean Mctite?
Posted 11/21/09 at 11:33pm
JDKJ: @Zip: Neil, Bob, and Lik McTaint. The McTaint brothers. LOL!!!
JDKJ: @Zip: Neil, Bob, and Lik McTaint. The McTaint brothers. LOL!!!
Posted 11/21/09 at 09:44pm
Flamespeak: I still think military personell, killing other military personell, on a military complex should be handled by military courts.
Flamespeak: I still think military personell, killing other military personell, on a military complex should be handled by military courts.
Posted 11/21/09 at 09:43pm
Flamespeak: I could see this a mixture of the two charges rather than just one or the other.
Flamespeak: I could see this a mixture of the two charges rather than just one or the other.
Posted 11/21/09 at 09:43pm
Flamespeak: I think this was mainly a person who snapped, but evidence is showing he definitely had strong inlinations to islamic-extremism.
Flamespeak: I think this was mainly a person who snapped, but evidence is showing he definitely had strong inlinations to islamic-extremism.
Posted 11/21/09 at 09:41pm
Flamespeak: People are trying to claim that Hasan's actions were not terrorism. I don't jump on the 'terror train' like others, however
Flamespeak: People are trying to claim that Hasan's actions were not terrorism. I don't jump on the 'terror train' like others, however
Posted 11/21/09 at 09:38pm
mentor07825: Britain certainly does deserve it! And the French! God damn it, it was a hand ball!!!
mentor07825: Britain certainly does deserve it! And the French! God damn it, it was a hand ball!!!
Posted 11/21/09 at 09:34pm
ZippyDSMlee: mentor07825:Well Brittan dose deserve it....
ZippyDSMlee: mentor07825:Well Brittan dose deserve it....
Posted 11/21/09 at 09:33pm
ZippyDSMlee: Alyric:I don;t hasliburton having to pay back billoins... don;t you love it when the rich roll over the goverment without a care?
ZippyDSMlee: Alyric:I don;t hasliburton having to pay back billoins... don;t you love it when the rich roll over the goverment without a care?
Posted 11/21/09 at 09:32pm
mentor07825: I say we nuke the whales, for the benefit of both mankind and the environment.
mentor07825: I say we nuke the whales, for the benefit of both mankind and the environment.
Posted 11/21/09 at 09:28pm
Austin_Lewis: I say we try Al Gore too. I always said he was in on the racket.
Austin_Lewis: I say we try Al Gore too. I always said he was in on the racket.
Posted 11/21/09 at 09:16pm
Alyric: The leaked information proves these organizations knowingly defrauded governments (i.e., taxpayers) out of billions of dollars. Yet there will probably never be a trial.
Alyric: The leaked information proves these organizations knowingly defrauded governments (i.e., taxpayers) out of billions of dollars. Yet there will probably never be a trial.
Posted 11/21/09 at 09:15pm
Flamespeak: working on other things makes me angry. I might have had a jet pack by now. :p
Flamespeak: working on other things makes me angry. I might have had a jet pack by now. :p
Posted 11/21/09 at 09:14pm
Flamespeak: Just thinking of all the time and manpower wasted to try and make things emit less CO2 emmision that could have been spent
Flamespeak: Just thinking of all the time and manpower wasted to try and make things emit less CO2 emmision that could have been spent
Posted 11/21/09 at 09:07pm
Alyric: @Zip: FYI, the construction of solar panels puts out more pollution than any form of energy production. To say nothing of the toxic components of the panels that cannot be recycled.
Alyric: @Zip: FYI, the construction of solar panels puts out more pollution than any form of energy production. To say nothing of the toxic components of the panels that cannot be recycled.
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Game Politics and Game Politics logo are trademarks of the ECA.
Game Politics and Game Politics logo are trademarks of the ECA.
Comments
The Motley Fool, dispite it's name, is actually pretty good. They do a good job of making all the crazy economic terms and buzzwords make sense.
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So speak I, some random guy.
@EA
walk away... you challenging everything is ruining everything
Now if only Activision would step in. I wouldn't mind working on the next GTA ;)
No offense, but I'd rather see EA get ahold of GTA than Activision. Ask around the office about True Crime: New York City if you want to know why that is.
Agreed, Activision are the ones whoring out Guitar Hero and deciding that the next Call of Duty gets put back in the hands of Treyarch.
EA, meanwhile, are developing Spore and Dead Space.
I'm not going to comment about the inner workings of Activision, I like my job too much.
If anything as soon as T2 is bought Rockstar will jump ship like there is no tomorrow. They did publish some game on their own for a while.
It really is getting ridiculous. EA needs to stop trying to monopolize everything. We'll end up with EA, Microsoft and Nintendo controlling all the games.
I'd say EA is the persistant horny drunk and Take Two is the girl at the bar with her boyfriend.
-kurisu7885
Really? Who's the girlfriend? I don't see her. Who is else is offering Take-Two anything?
Autonomy.
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So speak I, some random guy.
EA's attempt to buy Take-Two has been pretty anemic, that's for sure. They make a single offer, and just can't seem to grasp that shareholders are either not interested or that the price is too low. Normally, a sensible business would re-evaluate the strategy they pursued and change their plan... but I honestly don't know what to call EA's tactic here. "Runaway Groom" doesn't seem to fit... "delusional" is certainly more accurate.
It's more like an unwashed man standing on a crowded street with a "free hugs" sign for the fourth day in a row, who continues to give passers-by a sad smile despite the fact that no one has hugged him since day one.
Pretty much get the feeling that EA does not know when to quit. Yes they want to control Every market that might bring in money and this is understandable being for FOR Profit company, but please. No actually can mean No. Stubborn fools.
I probably would not care (or as much) if they had not managed to bastardise several companies that I used to buy game from.
To follow out Kurisu's anology. Maybe the boyfriend (Rockstar, verendi, someone) or the bouncer (The Courts) will remove the irratant and kick him to crub.
The only fool in this is the Motley Fool. Take-Two's shares are stalled below $27. The market had already taken into account the large sales of GTA IV. The stock is overvalued, as Take-Two is a one-trick pony with GTA.
EA is offering too much, not too little. Most analysts understand that.
Dufus in New York
If they're offering more than it's worth then where is the incentive to sell?
-kurisu7885
Sounds to me like Take-Two's shares are stalled at about the value of the company. It shot up with the EA offer, then remained steady with the release of GTA4. That says to me that all EA's offer really did was hasten the raise in the value of the stock a little, and that it'll remain where it is when EA finally gives up.
I wouldn't call them a one trick pony either given they've produced stuff like Bioshock recently. They've got plenty of talent floating around that just need to put to use.
Either way Motley Fool's right that EA's just embarassing themselves by continuing to extend their offer. It should be clear at this point that Take-Two is not interested in being bought at this time for that price. EA needs to raise their price, or go away and try again later.
Using the words analyst and understanding in the same sentence is an oxymoron.
That doesn't make sense. If EA was offering too much, then shareholders would be scrambling to take the deal. As EA has managed to grab less than 10% of Take Two's stock, I'd say that's not happening. Obviously shareholders are hanging onto what they have because they think they can get more money for it down the line.
I stand by my original prediction: EA will get a significant share of Take Two's stock, but not enough to take control of the company.
You know, EA, time for you to give it up, because obviously Take-Two isn't buying.
There comes a point in time where you must realize that "No" means "No" and that Take-Two doesn't want your money.
Besides, if Take-Two went to you, I'd never buy a GTA game again. (Or any Rockstar game, for that matter.)
Yeah, I gotta say, they have summed the whole thing up. I never believed this thing to be serious, after all the nonsense EA was throwing.
-If shit and bricks were candy and tits, we'd all be livin' large. For information on games and psychology, look up:
Jonathan Freedman (2002)
Block and Crain (2007)
Grand Theft Childhood, a book by Harvard Medical School researchers Lawrence Kutner and Cheryl Olson
Maybe they think it's like an argument as a small child; Pester them enough and they'll give in.
I have to agree, Electronic Arts, being the hungry overlords they are, seemingly can't grasp the concept of a company NOT wanting to join their dreadful "empire." And the fact that the FTC was giving T2 trouble until recently, despite them NOT wanting to sell, only serves to annoy me even more.
Fight the power, Take-Two!
Well, TT probably wouldn't mind if the price was right. EA's problem is that they can't seem to grasp that their offer isn't the right price, and it won't be for quite some time, if at all.
EA is just going to out endure them. There's no rush for them to raise their price: especially when they're offering too much as it is.
Critisize EA all you want, but they didn't get to where they are now by being bad on a business level.
So you think that EA will just keep extending the "deadline" on their offer for the next year or five in hopes that at some point the offer will become attractive to the TT investors?
Cause personally yeah, I'd call that bad business. They should have make their offer, up it or withdraw it if it gets rejected, and come back later when there'd actually be some pressure on Take-Two to sell. Instead we've got their offer where they've made their offer, it's been rejected, they decided to try a hostile takeover, and keep extending the duration of their offer as investor interest slowly fades.
They're trying to out endure investor disinterest, that's not exactly a very good tactic.
Let's be honest here...with Take Two saying over and over that they don't wish to sell to EA, be it for whatever reason, and EA continuing to attempt purchasing by giving these deadlines, it only shows how badly EA wants Take Two, and therefore, their asking price is too low. EA came to Take Two without T2 wanting to sell. That means they have to give them an offer they can't refuse. Sadly, T2 has been refusing, so the offer isn't that great. Giving deadlines, only to extend them every time, and yet still toss out that same amount...that just makes EA look more and more desperate. T2 has EA almost by the balls in this situation, even though EA got the FTC involved. If I went up to someone and said "Hey, I'll buy your car for $20 and you need to give me an answer in 5 minutes", then got told no, only to say "Ok, how about I give you $20 for your car and you need to give me an answer in 5 minutes from now"...it's not going to work. It shows desperation on EA's part (and desperation isn't sexy) and it shows T2 isn't falling for it.
There has to be more to it then we are able to see. Any company the size of EA isn't stupid. There are obviously things going on behind the curtain to perpetuate this behaviour from EA.