Just an 80's kid still playing video games
Finally, after all of the chaos surrounding this merger, Take Two has given in to EA’s aggressive campaign for takeover. It’s rumored that more than 500 jobs will be cut during the merger and Grand Theft Auto IV may be getting a delay because of this. EA has stated that they will do everything in their power to keep the release date firm, but they aren’t making any promises.
EA is borderline stalking Take-Two to try to get them to sell. They’ve offered tons of money, but Take-Two just doesn’t want to sell and EA is none to happy about that. They have made their proposals public so everyone can see it, and they’ve even created a website dedicated solely to the acquisition of Take-Two. How creepy is that?
Electronic Arts today has announced that they have made an offer to Take-Two Interactive for a merger. They have proposed $26 per share in the company, or 64 percent over Take-Two’s closing stock price. This comes to about $2 billion. Good lawd that’s a lot of money! For more details, check out the official press release. It seems that Take-Two has already turned down the offer though.
From Take-Two’s board:
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.
EA isn’t giving up though, and is letting this one sit on the table to see if Take-Two’s, Strauss Zelnick, Executive Chairman of the Board of Directors changes his mind. What could this mean for some your favorite games, ie. Grand Theft Auto, in the future? Who knows. I’m hoping Take-Two doesn’t take the bait.