Electronic Arts makes another bid for Take-Two
02-24-08 | 04:54 PM
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Electronic Arts makes another bid for Take-Two
http://www.marketwatch.com/news/stor...&dist=printTop
Chris
By Benjamin Pimentel, MarketWatch
Last update: 5:10 p.m. EST Feb. 24, 2008
SAN FRANCISCO (MarketWatch) -- Electronic Arts Inc. on Sunday unveiled a $2 billion unsolicited bid to buy Take-Two Interactive Software Inc. -- its second offer in recent weeks.
Electronic Arts (ERTSElectronic Arts Inc is proposing to purchase Take-Two Interactive (TTWOTake-Two Interactive Software at $26 a share in cash. The offer follows an earlier offer from the video- game maker to buy the company for $25 a share.
That offer was rebuffed by Take-Two, prompting Electronic Arts to send a revised proposal with a strong suggestion that the Redwood City, Calif.-based software company was prepared to take more aggressive steps to merge the two firms.
In a letter to Take-Two Chairman Strauss Zelnick, Electronic Arts CEO John Riccitiello urged the company, which is known for its Grand Theft Auto video-games, to accept the offer.
He also warned that rejecting the proposed deal would not be in the interest of Take-Two's shareholders.
Riccitiello said EA was raising its offer "to further demonstrate our seriousness and encourage you to move forward now."
"We believe that Take-Two's shareholders would not be well-served by any further delay in negotiating and completing the proposed merger," he said. "While the videogame industry remains an attractive, high-growth business, the challenges and risks in the business are escalating, and the need for scale is becoming more pronounced."
He added: "There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering."
EA noted that its $26 a share offer represents a 64% premium on Take-Two's closing price on Feb. 15.
Riccitiello said EA would prefer to negotiate the terms of the proposed merger, but he also strongly hinted that his team may take their offer directly to Take-Two's shareholders.
"Our strong preference is to conduct a private negotiation," he wrote. "If you are unwilling to proceed on that basis, however, we may pursue other means, including the public disclosure of this letter, to bring our offer and the compelling value it represents to the attention of Take-Two's shareholders."
Benjamin Pimentel is a MarketWatch reporter based in San Francisco.
Last update: 5:10 p.m. EST Feb. 24, 2008
SAN FRANCISCO (MarketWatch) -- Electronic Arts Inc. on Sunday unveiled a $2 billion unsolicited bid to buy Take-Two Interactive Software Inc. -- its second offer in recent weeks.
Electronic Arts (ERTSElectronic Arts Inc is proposing to purchase Take-Two Interactive (TTWOTake-Two Interactive Software at $26 a share in cash. The offer follows an earlier offer from the video- game maker to buy the company for $25 a share.
That offer was rebuffed by Take-Two, prompting Electronic Arts to send a revised proposal with a strong suggestion that the Redwood City, Calif.-based software company was prepared to take more aggressive steps to merge the two firms.
In a letter to Take-Two Chairman Strauss Zelnick, Electronic Arts CEO John Riccitiello urged the company, which is known for its Grand Theft Auto video-games, to accept the offer.
He also warned that rejecting the proposed deal would not be in the interest of Take-Two's shareholders.
Riccitiello said EA was raising its offer "to further demonstrate our seriousness and encourage you to move forward now."
"We believe that Take-Two's shareholders would not be well-served by any further delay in negotiating and completing the proposed merger," he said. "While the videogame industry remains an attractive, high-growth business, the challenges and risks in the business are escalating, and the need for scale is becoming more pronounced."
He added: "There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering."
EA noted that its $26 a share offer represents a 64% premium on Take-Two's closing price on Feb. 15.
Riccitiello said EA would prefer to negotiate the terms of the proposed merger, but he also strongly hinted that his team may take their offer directly to Take-Two's shareholders.
"Our strong preference is to conduct a private negotiation," he wrote. "If you are unwilling to proceed on that basis, however, we may pursue other means, including the public disclosure of this letter, to bring our offer and the compelling value it represents to the attention of Take-Two's shareholders."
Benjamin Pimentel is a MarketWatch reporter based in San Francisco.
Chris
02-24-08 | 05:13 PM
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02-24-08 | 05:36 PM
#3
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They just can't take being second fiddle to Activision. I hope they continue to refuse the offers.
02-25-08 | 12:18 PM
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The stock holders were so excited for this too 
02-25-08 | 12:31 PM
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From: Keizer, OR
As far as 2K sports goes, the only thing we would "lose" is the NBA 2K series. EA bought the rights to the College basketball game, so 2K8 is the last of that series.
I think NBA 2K would be rebadged NBA Live and MLB 2K and NHL 2K could be merged with EA's brands. Alas, we would have one option for football, hockey, basketball and baseball (for those with a 360). Looks like it is time to steer away from sports games...I look forward to GTA '09, '10, '11, etc.
I think NBA 2K would be rebadged NBA Live and MLB 2K and NHL 2K could be merged with EA's brands. Alas, we would have one option for football, hockey, basketball and baseball (for those with a 360). Looks like it is time to steer away from sports games...I look forward to GTA '09, '10, '11, etc.
02-25-08 | 01:08 PM
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DVD Talk Godfather
I fear that corporate pride would make NBA 2K go away in favor of NBA Live... even though I think 2K has been the better game for years now.
02-25-08 | 01:12 PM
#11
Originally Posted by nickdawgy
MVP Baseball would be cool but what about stuff like 2k sports, Bioshock, GTA, and the like?
I think this is happening, the question is when?
I think this is happening, the question is when?
02-25-08 | 01:46 PM
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From: Keizer, OR
Originally Posted by Goat3001
I can't imagine anything would happen with games like Bioshock and GTA series. EA is well aware that they are great the way they are. For better or worse they may make some tweaks here or there but I doubt there will be any noticeable differences. You will see the EA logo on the cover and before the game though. EA just wants to cash in on these games.
02-25-08 | 03:54 PM
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Originally Posted by hail2dking
It won't take long. EA bought Criterean right before Burnout 3 was released. Now look at the direction Burnout Paradise has gone.
02-25-08 | 05:26 PM
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From: Keizer, OR
Originally Posted by fumanstan
I don't see how you can blame EA for that.
(Actually, if EA had any say in Burnout, we would be playing Burnout 3 - '08 with updated paint jobs)
Last edited by hail2dking; 02-25-08 at 05:30 PM.
02-25-08 | 05:48 PM
#18
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Originally Posted by hail2dking
I blame EA for everything
(Actually, if EA had any say in Burnout, we would be playing Burnout 3 - '08 with updated paint jobs)
(Actually, if EA had any say in Burnout, we would be playing Burnout 3 - '08 with updated paint jobs)
02-26-08 | 03:12 PM
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http://www.xbox360fanboy.com/2008/02...quire-ubisoft/
Chris
Rumor: EA looking to acquire Ubisoft
Posted Feb 26th 2008 1:15PM by Richard Mitchell
Filed under: Rumors
After an unsuccessful bid to take over Take Two, it looks like Electronic Arts may be setting its sights on Ubisoft. Followers of the game industry will remember that EA raised its already hefty 20% stake of voting shares in Ubisoft to nearly 25% in August of 2007. This wasn't long after Ubisoft president Yves Guillemot stated that the company was "still considering" an EA acquisition earlier that year. GameCyte reports that the same proxy registration company that registered eatake2.com, a site used in an attempt to convince shareholders of the merits of an EA acquisition, also registered eaubisoft.com on the same day.
Naturally, there's no way to prove that EA is responsible for the registrations -- it was made by proxy after all. Still, given the circumstances and EA's obvious interest in Ubisoft, it certainly makes sense. Stranger things have happened, right?
Posted Feb 26th 2008 1:15PM by Richard Mitchell
Filed under: Rumors
After an unsuccessful bid to take over Take Two, it looks like Electronic Arts may be setting its sights on Ubisoft. Followers of the game industry will remember that EA raised its already hefty 20% stake of voting shares in Ubisoft to nearly 25% in August of 2007. This wasn't long after Ubisoft president Yves Guillemot stated that the company was "still considering" an EA acquisition earlier that year. GameCyte reports that the same proxy registration company that registered eatake2.com, a site used in an attempt to convince shareholders of the merits of an EA acquisition, also registered eaubisoft.com on the same day.
Naturally, there's no way to prove that EA is responsible for the registrations -- it was made by proxy after all. Still, given the circumstances and EA's obvious interest in Ubisoft, it certainly makes sense. Stranger things have happened, right?
Chris
02-26-08 | 04:20 PM
#20
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EA's ultimate goal is a unified platform, a single console for every game. If they buy up enough companies, they might have the muscle to make it happen.
There's valid arguments on both sides of a single-console debate, but the last company I'd want to spearhead it is EA.
There's valid arguments on both sides of a single-console debate, but the last company I'd want to spearhead it is EA.
02-26-08 | 09:47 PM
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Originally Posted by slop101
EA's ultimate goal is a unified platform, a single console for every game. If they buy up enough companies, they might have the muscle to make it happen.
There's valid arguments on both sides of a single-console debate, but the last company I'd want to spearhead it is EA.
There's valid arguments on both sides of a single-console debate, but the last company I'd want to spearhead it is EA.
EA = Evil Alliance
02-26-08 | 09:57 PM
#24
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I can't even imagine how EA would go about forcing one platform. Sony, Nintendo, and even Microsoft are still strong first parties that will not (not anytime soon, at least) be sold to EA. I guess you can point to Sega, but it seems like three platforms are sustainable in the current market.
Where did this "EA wants one platform" stuff come from anyway? An article? Or just speculation? They may very well want to be the only third party publisher of any significance, but even then they haven't bought up any Japanese companies to my knowledge.
Where did this "EA wants one platform" stuff come from anyway? An article? Or just speculation? They may very well want to be the only third party publisher of any significance, but even then they haven't bought up any Japanese companies to my knowledge.
02-26-08 | 10:04 PM
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Originally Posted by fujishig
I can't even imagine how EA would go about forcing one platform. Sony, Nintendo, and even Microsoft are still strong first parties that will not (not anytime soon, at least) be sold to EA. I guess you can point to Sega, but it seems like three platforms are sustainable in the current market.
Where did this "EA wants one platform" stuff come from anyway? An article? Or just speculation? They may very well want to be the only third party publisher of any significance, but even then they haven't bought up any Japanese companies to my knowledge.
Where did this "EA wants one platform" stuff come from anyway? An article? Or just speculation? They may very well want to be the only third party publisher of any significance, but even then they haven't bought up any Japanese companies to my knowledge.