EA trying to acquire Take-Two @ $26 per share! NOOOOOOOOOOooooo!

[EastCoasthandle]

The news follows weeks of rumors that Take-Two would be the subject of an acquisition bid, with Viacom touted as a possible suitor at $1.5 billion. EA has, it turns out, attempted to buy Take-Two for $25 a share, and, after being rebuffed, has upped the ante by a buck. But the firm has warned shareholders that they won't get a better price.

EA's proposal of $26 per share in cash represents a premium of 64 percent over Take-Two's closing stock price prior to the company's bid.

EA Chief Executive Officer John Riccitiello said "Our all-cash proposal is a unique opportunity for Take-Two shareholders to realize immediate value at a substantial premium, while creating long-term value for EA shareholders. Take-Two's game designers would also benefit from EA's financial resources, stable, game-focused management team, and strong global publishing capabilities."


He urged Take-Two shareholders to accept the bid, "There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today."



EA had warned Take-Two's bosses that if they refused to engage in negotiations, the company would go public with its bid. Today, EA made good on that threat.



Take-Two's assets include Grand Theft Auto 4, which ought to be the biggest game of 2008. EA says it wants to get the deal done before the game's release in order to avoid disruption.

Hopefully this doesn't happen but time will tell.

You gotta read the letter

February 19, 2008

Mr. Strauss Zelnick
Executive Chairman of the Board of Directors
Take-Two Interactive Software, Inc.
622 Broadway
New York, NY 10012

Dear Strauss:

Thank you for your letter of February 15, 2008. While I appreciate its courteous tone and value our ongoing dialogue, I am disappointed that you have rejected Electronic Arts Inc.'s ("EA's") $25 per share cash offer to acquire Take-Two Interactive Software, Inc. ("Take-Two") and declined to engage in the friendly negotiations we proposed. We continue to believe that an acquisition of Take-Two by EA is in the best interests of your shareholders, employees and other constituents, and we remain interested in acquiring Take-Two. So, to further demonstrate our seriousness and encourage you to move forward now, I am writing to increase EA's offer to acquire all of the outstanding shares of Take-Two to $26 per share in cash. This offer is subject to Take-Two agreeing by February 22, 2008 to commence negotiation of a definitive merger agreement and to permit EA to commence a limited due diligence review of Take-Two....

-- We believe Take-Two's current share price already reflects investor expectations for a strong release of GTA IV as well as the longer-term issues that Take-Two faces. Once GTA IV ships, Take-Two will again be dependent on less-popular titles and face increasing challenges to compete with larger and better-capitalized competitors.

-- With GTA IV shipping on April 29, development on this important title must now be essentially complete. We believe now is the right time to complete a transaction with minimal disruption for Take-Two.

We also believe the transaction we are proposing will create value for EA's shareholders. In addition to the top-line benefits noted above, we can achieve bottom-line benefits by combining Take-Two's and EA's corporate and publishing infrastructures and by optimally supporting Take-Two's creative teams and intellectual properties in EA's decentralized label structure...

Read the rest here
NOoooo!!!

[Cold Storm]

What can I say? EA is going to own everything!

[EastCoasthandle]

Isn't it obvious why they want take 2 now?

[Cold Storm]

Oh yeah, GTA is going to be a great game and could do big for take-two..

[PrudentPrincess]

Originally Posted by EastCoasthandle

Isn't it obvious why they want take 2 now?

For the lulz?

[EastCoasthandle]

I wonder if GTA IV will sell more then Lulz (Halo 3)?

[Cold Storm]

It just might.. its on both the Ps3 and xbox.. Halo did great, but this game is just A JUMP from what the last one was

[Ravenas]

It's being said Rockstar is going Playstation exclusive after GTA IV:

Guy from cheapassgamer posted this from his play magazine that he just got:

Just received the February 08 issue of Play Magazine (Afro Samurai cover) and tucked away in the GTAIV preview was this line: "The game is both PS3 and 360, but Rockstar has suggested that all further game development is going to be PS3 exclusive."
http://www.cheapassgamer.com/forums/....php?t=1701488

the Magazine: http://playmagazine.com/print/

EDIT: Fixed the source link in the quote.

[Cold Storm]

yeah, thats because Sony wasn't able to sign that letter making the game exclusive.. see why the new pres is doing a dang better job at running it?

[EastCoasthandle]

Originally Posted by Ravenas

It's being said Rockstar is going Playstation exclusive after GTA IV:

Guy from cheapassgamer posted this from his play magazine that he just got:



the Magazine: http://playmagazine.com/print/

Nice spin but that's fud. They wouldn't dare undercut sales between 2 platforms just to be a PS3 fanboy.
Sometimes you try to hard.

[Ravenas]

Originally Posted by EastCoasthandle

Nice spin but that's fud. They wouldn't dare undercut sales between 2 platforms just to be a PS3 fanboy.
Sometimes you try to hard.

That's not necessarily true, although it is questionable, doesn't mean that it's not true.

Lol, I try too* hard? Shut up dude don't start something just because I post something that's being rumored.

[EastCoasthandle]

And the drama continues

After careful evaluation, the Board has determined that EA's proposal substantially undervalues Take-Two's robust and enviable stable of game franchises, exceptional creative talent and strong consumer loyalty. We believe EA's unsolicited offer is highly opportunistic and is attempting to take advantage of our upcoming release of Grand Theft Auto IV, one of the most valuable and durable franchises in the industry. Furthermore, the offer values the Company at a significant discount to its public peers and does not compensate Take-Two for its intrinsic value and the substantial synergies that the proposed combination would create.

Strauss Zelnick, Executive Chairman of the Board of Take-Two commented, "Electronic Arts' proposal provides insufficient value to our shareholders and comes at absolutely the wrong time given the crucial initiatives underway at the Company. Thanks to the extraordinary efforts of our creative and business teams, Take-Two has made enormous strides in the past 10 months toward our common goal of being the most creative, innovative and efficient company in our industry. We're extremely proud of our unique portfolio of game franchises, exceptional creative talent and loyal consumer following. Our Board believes that we will build greater value for our stakeholders by remaining relentlessly focused on our strategy and delivering on our mission of making the highest quality interactive entertainment."

Mr. Zelnick continued, "In addition to undervaluing key elements of our business, EA's proposal fails to recognize the value we are building through our ongoing turnaround efforts, which will further revitalize Take-Two. While we have made substantial progress already, the turnaround of our business which we initiated in June is not yet complete, and we believe its benefits have not been recognized in either our current stock price or in the value of EA's proposal."

Mr. Zelnick added, "While the Board believes that entering into discussions with EA at this time is not in the best interests of shareholders, we had offered to enter into a good-faith dialogue with EA to determine if our companies can reach common ground on the appropriate value of Take-Two as a first step to realizing a mutually beneficially transaction. However, given the great importance of the Grand Theft Auto IV launch to the value of Take-Two, the Board has determined that the only prudent and responsible course for our Company and its stockholders is to defer these discussions until immediately after Grand Theft Auto IV is released. Therefore, we offered to initiate discussions with EA on April 30th, 2008 (the day after Grand Theft Auto IV is scheduled to release). We believe this offer demonstrated our commitment to pursuing all avenues to maximize stockholder value, while we believe that EA's refusal to entertain this path is evidence of their desire to acquire Take-Two at a significant discount, whereas we believe this value rightly belongs to our stockholders."
...

More found here
source

[EastCoasthandle]

Originally Posted by Ravenas

That's not necessarily true, although it is questionable, doesn't mean that it's not true.

Lol, I try too* hard? Shut up dude don't start something just because I post something that's being rumored.

Actually it is, just because someone says it doesn't make it true. And yes, you do try to hard because your posts comes off as PS3 partisan in a thread discussing EA buying take 2. In other words, has nothing to do with this thread at all.

[Ravenas]

Originally Posted by EastCoasthandle

Actually it is, just because someone says it doesn't make it true. And yes, you do try to hard because your posts comes off as PS3 partisan.

Hmm...Probably because I own a PS3? Lol.

It's not someone who said it, it's a company that writes a magazine that said it. Therefore, the entire company stands behind their print. Besides it's a rumor, as stated in the source. If you would actually took that into consideration, as I did, you would get somewhere.

True the article is questionable, but that doesn't mean it's not true. Rumors are flying everywhere right now that MS is about to purchase EPIC games.

This same news that your post right now was being rumored long before you even posted it.

[EastCoasthandle]

Originally Posted by Ravenas

Hmm...Probably because I own a PS3? Lol.

It's not someone who said it, it's a company that write a magazine that said it. Therefore, the entire company stands behind their print. Besides it a rumor, as stated in the source. If you would actually take that into consideration, as I did, you would get somewhere.

True the article is questionable, but that doesn't mean it's not true. Rumors are flying everywhere right now that MS is about to purchase EPIC games.

Its off topic to this thread and has nothing to do with EA trying to buy take 2. Dude give it a rest. Your posting a PS3 related rumor in a off topic manner.

[Ravenas]

Originally Posted by EastCoasthandle

It off topic to this thread and has nothing to do with EA trying to buy take 2. Dude give it a rest. Your posting a PS3 related rumor in a off topic manner.

You're the one who brought up GTA IV LOL! That's the only reason I posted it...

[EastCoasthandle]

Originally Posted by Ravenas

You're the one who brought up GTA IV LOL! That's the only reason I posted it...

LOL and it has nothing to do with EA trying to buy Take 2

[acperience7]

EA is getting ridiculous with this acquisition stuff.

[Skrabrug]

EA is a very scary company these days... like some sort of gigantic blob that eats everything in its path?

[Ravenas]

Originally Posted by EastCoasthandle

LOL and it has nothing to do with EA trying to buy Take 2

So essentially you're saying by you bringing up GTA IV you took your own topic off topic.

Besides the ignorance of this thread is horrible:

1. EA buying Take Two doesn't change the development team by much.

2. EA owns many companies and still retains their same developers.

3. These companies would have a hard time in order to gain the specific licenses that they have on top of developing costs, marketing responsibilities, etc. Do you think the could do this alone? The answer is no.

4. This would put an end to games like BioShock being exclusive, which is a huge game (great game) that PS3 players missed out on.

5. 2K sports would remain the same and would keep the same name, but would have the financial backing of EA and its resources. EA would never get rid of 2K sports. They would make entirely too much money off of it.

6. Take two would gain tons of financial help. More than they are now, and in turn would make tons of great end products for their customers.

7. All of the points listed above is the end result of good games for all of us.

The only thing failing is you thinking that EA is some closed minded sheep that is out to do some sort of epic evil to other companies. They didn't just show up with tons of money out of nowhere. They were there for a reason.

In my eyes Take Two is failing their customers by not accepting EAs offer simply because they feel that EA undervalued the company, aka, Take Two shareholders and CEOs want more money because they are greedy.

[erocker]

Guys, this is a pretty hot topic. Just respect one another please. GTAIV as specified in the article is a major issue with this deal and the PS3 and Xbox360 are both affected by this. Just be cool.

[EastCoasthandle]

Originally Posted by Ravenas

So essentially you're saying by you bringing up GTA IV you took your own topic off topic.

Besides the ignorance of this thread is horrible:

1. EA buying Take Two doesn't change the development team by much.

2. EA owns many companies and still retains there same developers.

3. These companies would have a hard time in order to gain the specific licenses that they have on top of developing costs, marketing responsibilities, etc. Do you think the could do this alone? The answer is no.

4. This would put an end to games like BioShock being exclusive, which is a huge game (great game) that PS3 players missed out on.

5. 2K sports would remain the same and would keep the same name, but would have the financial backing of EA and its resources. EA would never get rid of 2K sports. They would make entirely too much money off of it.

6. Take two would gains tons of financial help. More than they are now, and in turn would make tons of great end products for their customers.

7. All of the points listed above is the end result of good games for all of us.

The only thing failing is you thinking that EA is some closed minded sheep that is out to do some sort of epic evil to other companies. They didn't just show up with tons of money out of nowhere. They were there for a reason.

In my eyes Take Two is failing their customers by not accepting EAs offer simply because they feel that EA undervalued the company, aka, Take Two shareholders and CEOs want more money because they are greedy.

It's pretty obvious you come to this thread to cause commotion with your bias opinion, unfounded rumor and, show that you are not very astute to the subject at hand. It doesn't make good business sense to sell the company for less then what they could make of the sell of GTA IV.

[erocker]

Aren't everyones opinions somewhat biased? It's ok to disagree and discuss, that's what forums are for.

[Ravenas]

Originally Posted by EastCoasthandle

It's pretty obvious you come to this thread to cause commotion with your bias opinions, unfounded rumors and, show that you are not very astute to the subject at hand. It doesn't make good business sense to sell the company for less then what they could make of the sell of GTA IV.

Sure because it would be better for Take 2 to die off and go bankrupt in a market that publishers mean everything now. GTA IV stands to make more money if it had the financial resources of EA. Or maybe you like it more if its studios were sold off to separate companies and go no where after that.

Why do you think that rumor about Rockstar going exclusive came about?

You have a hard time actually making a point, instead you just throw out things trying to downplay the other person.

[Skrabrug]

Originally Posted by EastCoasthandle

It's pretty obvious you come to this thread to cause commotion with your bias opinions, unfounded rumors and, show that you are not very astute to the subject at hand. It doesn't make good business sense to sell the company for less then what they could make of the sell of GTA IV.

I agree with eastcoast

But my opinion on the matter is:
EA doesn't really seem to care about Take Two.. and it apears they only wanna get their hands on some of the money from the new GTA game. (I know that sounds bias but I do actuly like EAs games more than Take Twos games.)

It just seems odd EA is trying to push take 2 around just before they are about to release a huge cash cow?