Take-Two Rebuffs EA

Take-Two Interactive Software Board Rejects Electronic Arts' Offer as Inadequate has the latest news in EA's attempted hostile takeover of Take-Two. The board is recommending to shareholders that EA's $26/share offer be rejected, but of course, if they didn't it would not be a hostile takeover. The board also adopted a number of measures, some of which are presumably related to this proposed deal. Here's a bit on their plans going forward:
The Board also confirmed that it will explore alternatives to maximize value for stockholders, which may include a business combination with third parties or with EA, remaining independent, or other strategic or financial alternatives that could deliver higher stockholder value than the current EA offer. The Board has commenced a process for considering strategic alternatives in order to be prepared to engage in discussions with any parties, including EA, interested in a strategic business combination following Take-Two’s release of Grand Theft Auto IV, scheduled for April 29, 2008.
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No subject
Mar 27, 2008, 12:56
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No subject Mar 27, 2008, 12:56
Mar 27, 2008, 12:56
 
Yeah, EA was just trying to come in late to the game and cash in on GTA sales. Jackass move EA.

TT has every right to wait until the newest game is released then come back to the table. Shareholders should see their current gain as a win - that was going to happen later this year anyway when their earnings come out.

EA also have an agenda to quash the 2k sports arena. So they were attempting 2 jerk moves at 1 time with HORRIBLE timing.

If they REALLY wanted to do this under legitimate circumstances, they should have attempted LAST YEAR AT THIS TIME. Not 1-2 months before the most anticipated game of the year is released.

Sales are going to be RIDICULOUS!

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7.
 
Re: ViRGE
Mar 27, 2008, 07:13
7.
Re: ViRGE Mar 27, 2008, 07:13
Mar 27, 2008, 07:13
 
ViRGE youre an EA suit, right? Or you own EA shares?

If youre not then WTF is up with you? Is your head stuck up your ass? Did you even follow the link Blue posted?

GTA4 is the HOTTEST IP in the console industry right now it would be so "bad business" to sell before its out!

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6.
 
Re: No subject
Mar 27, 2008, 03:25
6.
Re: No subject Mar 27, 2008, 03:25
Mar 27, 2008, 03:25
 
*stuff about how GTA makes T2 valuable*
What you've failed to take in to account is all of the stuff that doesn't make T2 valuable, which is basically everything else. They have no other blockbuster titles planned for 2008, and they're in major hot water over accounting problems. They're lucky they're solvent right now, the FTC and shareholders could rip them to shreds over some of the book cooking they did. They've lost money for the last two years straight and have done so again in Q1 2008. GTA will make them profitable for a quarter, but they'll just go back to losing money in the next quarter.

EA is overpaying for the company, it's not worth the 2B it's valued at and no one else is going to offer that kind of money for the company. Either they sell now, or the moment there's a bit of bad news to drive the stock price down, EA will start their hostile takeover.

T2 is a poorly run company, it's not long for this world.

5.
 
Re: No subject
Mar 27, 2008, 02:23
5.
Re: No subject Mar 27, 2008, 02:23
Mar 27, 2008, 02:23
 
I still have it in the back of my mind that they are delaying until after the GTA4 release just to increase their value, and sell then.

First thing I thought when I read "Take Two was undervalued." No better way to convince someone you're not undervalued than to raise your value, heh.

4.
 
Re: No subject
Mar 26, 2008, 23:36
4.
Re: No subject Mar 26, 2008, 23:36
Mar 26, 2008, 23:36
 
Yeah, seems the point is Take Two will be worth more than $26 a share in 3 months, certainly at least $26 so why sell themselves and shareholders short?
Hell, even if GTA4 is only half as good as previous they will still sell millions of copies. I haven't played them much at all as a PC gamer but on console this a huge IP.
‘What is this bullshit that you people are doing?’
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Beating and Gassing Americans for Jesus!
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3.
 
Re: No subject
Mar 26, 2008, 20:16
3.
Re: No subject Mar 26, 2008, 20:16
Mar 26, 2008, 20:16
 
You think Take Two is going to go down the toilet? That's foolish. They have the hottest property right now. GTA4 is going to sell huge numbers.

If EA buys them out, a lot of jobs are going to be lost, and a lot of game development is going to cease.

I am fully aware that TT has to do what the shareholders decide, and corporations are going to do what's best to make the biggest money possible. But the last thing I want to see is anyone buy out Take 2, least of all EA.

Take Two was undervalued, EA recognized this and made a pretty good offer, but it's still under value, especially with GTA4 just a month away.

I still don't trust the suits though. After the stunt they pulled beefing up executive payouts if the company is bought, I still have it in the back of my mind that they are delaying until after the GTA4 release just to increase their value, and sell then.

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2.
 
Re: No subject
Mar 26, 2008, 19:12
2.
Re: No subject Mar 26, 2008, 19:12
Mar 26, 2008, 19:12
 
Take Two is foolish to keep turning down EA's offers, EA isn't going to keep at this forever and no one is going to make a better offer. This may be the shareholders' only chance to get something good for the company before it goes down the toilet completely.

1.
 
No subject
Mar 26, 2008, 19:01
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No subject Mar 26, 2008, 19:01
Mar 26, 2008, 19:01
 
Has ea actually just come out an said they have to have Take Two otherwise ea will show huge losses and have tons of pissed off shareholders? Seems ea profits have been getting smaller and smaller each year or maybe I am just reading this wrong.
I wonder how much money ea will try to throw at this before their year end.
‘What is this bullshit that you people are doing?’
The worst criminal in human history, undeniably.
Beating and Gassing Americans for Jesus!
Ain't no tweetin, in jail jammies!
Avatar 1858
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