Send News. Want a reply? Read this. More in the FAQ.   News Forum - All Forums - Mobile - PDA - RSS Headlines  RSS Headlines   Twitter  Twitter
User Settings
LAN Parties
Upcoming one-time events:

Regularly scheduled events

EA Looks to Take Take-Two

Electronic Arts has announced they are looking to buy Take-Two Interactive for a whopping 2 billion dollars. The article offers the text of a letter sent to Take-Two from EA Chief Executive Officer John Riccitiello describing the all-cash offer that has been rejected by Take-Two. EA is now making this public in the hopes that Take-Two shareholders will find it appealing and exert pressure on the board to accept it. Here's a summary:

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Electronic Arts Inc. (“EA”) (NASDAQ: ERTS - News) today announced that it has proposed to acquire Take-Two Interactive Software, Inc. (“Take-Two”) (NASDAQ: TTWO - News) in an all-cash merger valued at approximately $2.0 billion.

EA’s proposal of $26 per share in cash represents a premium of 64 percent over Take-Two’s closing stock price on Feb. 15th, the last trading day before EA sent its revised proposal to Take-Two, and a 63 percent premium over Take-Two’s 30-day trailing average price over the thirty trading days ending on that date.

EA’s proposal was contained in a letter sent on Feb. 19th by EA Chief Executive Officer John Riccitiello to Strauss Zelnick, Executive Chairman of the Board of Directors of Take-Two. The Take-Two Board’s subsequent rejection of the EA proposal led to EA’s decision to release the letter and bring its proposal to the attention of all Take-Two shareholders.

Mr. Riccitiello said today: “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.”

The EA letter warned that further Take-Two delay in accepting EA’s proposal could prevent Take-Two’s shareholders and other constituents from realizing its benefits. “There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today,” Mr. Riccitiello wrote. The letter added that timely completion of the proposed transaction would allow EA’s strong publishing and distribution network to positively impact the ongoing post-launch sales of GTA IV and support the new Take-Two titles scheduled for launch later in the year and during the holiday selling season.

As noted in EA’s Feb. 19th letter, EA’s proposal is not conditioned on any financing requirement. It is, however, subject to certain customary conditions as set forth in the letter. EA’s $26 per share proposal is based on the current equity capitalization of Take-Two. Although EA indicated in the letter that its proposal was subject to negotiations commencing by Feb. 22nd, EA intends to keep its proposal open for the present to give Take-Two’s shareholders and Board of Directors further time to consider it.

2. No subject Feb 24, 2008, 16:24 Donkey_Punch
Oh god please no.

Previous Post Next Post Reply Quote Edit Delete Report
    Date Subject Author
  1. Feb 24, 16:14 No subject Talisorn
  4. Feb 24, 16:30  Re: No subject Yosemite Sam
  5. Feb 24, 16:38   Re: No subject dubfanatic
  6. Feb 24, 16:40   Re: No subject CptRanger
  7. Feb 24, 16:45    Re: No subject SFLUFAN
  8. Feb 24, 16:53   Re: No subject DG
  11. Feb 24, 17:13    Re: No subject wtf_man
  13. Feb 24, 17:16     Re: No subject Hazard
  14. Feb 24, 17:34      Re: No subject wtf_man
  10. Feb 24, 17:08  Re: No subject SkavenUK
>> 2. Feb 24, 16:24 No subject Donkey_Punch
  3. Feb 24, 16:28 No subject Retired
  9. Feb 24, 17:05 Take 2 Responds SFLUFAN
  12. Feb 24, 17:14 Sports Elricsi
  15. Feb 24, 17:41 No subject tootbrush
  16. Feb 24, 18:05  Re: No subject dubfanatic
  24. Feb 24, 18:38   Re: No subject >U
  26. Feb 24, 19:33    Re: No subject Jerykk
  32. Feb 24, 21:19     Re: No subject >U
  34. Feb 24, 22:16      Re: No subject Jerykk
  35. Feb 24, 22:28       Re: No subject >U
  37. Feb 24, 22:48        Re: No subject Bone43
  42. Feb 25, 05:54         Re: No subject Chairman Kaga
  17. Feb 24, 18:06  Re: No subject _neolith_
  21. Feb 24, 18:13   Just noticed something... CptRanger
  29. Feb 24, 20:19    Re: Just noticed something... Kxmode
  20. Feb 24, 18:13  Re: No subject Smoove
  18. Feb 24, 18:09 No subject KilrathiAce
  40. Feb 25, 03:05  Re: No subject Parallax Abstraction
  41. Feb 25, 03:52   Re: No subject Cutter
  19. Feb 24, 18:10 wow Fausticle
  22. Feb 24, 18:14 No subject KilrathiAce
  23. Feb 24, 18:23  Re: No subject SFLUFAN
  25. Feb 24, 18:46  Re: No subject >U
  27. Feb 24, 19:36   Re: No subject Yosemite Sam
  28. Feb 24, 20:14 Godzilla Kxmode
  30. Feb 24, 20:28 Rejected BlessedBullet
  36. Feb 24, 22:31  Re: Rejected Yosemite Sam
  31. Feb 24, 21:02 No subject Wilson
  33. Feb 24, 21:27 No subject Xero
  38. Feb 24, 22:59 No subject Veinman
  39. Feb 24, 23:31  Re: No subject manic half
  43. Feb 25, 06:35 No subject goatman
  44. Feb 25, 13:57  Re: No subject  dsmart 


Blue's News logo