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EA Launches Hostile Bid For Take 2

Redwood City (CA) - Electronic Arts is not giving up on its intention to acquire Take 2 Interactive, publisher of titles such as Grand Theft Auto, Bioshock, Bully and Manhunt 2. The company is approaching Take 2 shareholders directly, building on recent news that investors are suing Take 2 for not accepting EA’s acquisition offer.

EA said that it has made a tender offer for all of the currently outstanding shares of Take 2 common stock. The offer remained at the original $26 per share, which translates into a purchase price of about $2 billion, a 64% premium over Take 2’s closing stock price on February 15. Rather than aiming the offer directly at the company’s board, EA chief executive officer said that the tender offer "is a great opportunity for Take-Two shareholders." He added: "We believe Take-2 investors will see our tender offer as the best way to maximize the value of their investment in Take-Two".

The tender offer will scheduled to expire at 12:00 AM EDT on April 11, 2008. The offer itself has certain conditions, including EA’s ability to acquire the majority of outstanding Take 2 shares and Take 2’s willingness to enter into a merger agreement with EA.

EA announced its intention to acquire Take 2 on February 25. Take 2 however rejected the offer stating it was the wrong place and the wrong time to consider such an offer. Yesterday, a Take 2 stock owner Patrick Solomon announced that he has filed suit because of that decision, claiming that EA failed to "reasonably respond" and that Take 2’s "outright rejection of EA’s offers and failure to negotiate" violated the company’s duty to "maximize shareholder value."

At the same time that EA was attempting to buy Take 2, Take 2 decided to increase bonuses and compensation for management in the event of a takeover. The company tried to keep this move confidential.

  • Oh dear god in heaven don't let this merger happen. EA takes over companies like this, and kills their products to take their technology. Anyone remember what happened with WestWood studio's for example? Hmmm lets think about game quality with the C&C series before EA bought out westwood, and after. Sorry As far as I'm concerned EA has a permanent stigmata with me, they killed Earth and Beyond, as well as all the other MMO's Westwood was running. And as far as tech support and stability C&C Generals/Zero our was a flaming pile.

    If this happens that means GTA series will be gone, BioShock will be turned to crap, and god knows what else they'll do.
  • I hope this does not pass at all. EA is on a non-stop never ending take-over of any company that stands in its way. There trying to be number one at everything and anything. Problem is i don't hate EA but some games they make are just plain crap. And the big issue is that even the titles that are ok, coming from EA this big hot shot developer/publisher i mean you'd think they'd spend a lot of time and effort into making there games to be a 5 star rating game. But the reality is they just push games out just to make a buck or two, leaving the consumer blinded by almost no other options out in the market. If EA takes down Take 2, I'm not 2 sure if i even want stick around for GTA5 or any title that is owned by them. I wish companies would stop buying out there competition. If a company is doing great i don't think a company should merge. A lot of that has been happening in the gaming industry and I'm fed up with it. All the talent being controlled by a bunch of monopolizing freaks who just want to make money of titles that once did rock the boat, but now controlled by money hungry vultures the games will just begin to slowly lose what made them so fun in the first place. I seriously doubt the future of gaming with companies doing things like this is going to get any better. Anyways I am very pissed off right now, like i said before i don't hate EA because i do own games of theres and some are great, others are even better especially when there not developed by EA but only published. Now if that was to happen say they buy them, but don't ruin the franchise by allowing the developers to create the existing great games and even greater sequels and such then i don't have a problem with it. But i do hope EA does not end up taking over ever great publisher/developer like take 2. I believe they are trying to do that to eliminate there competition which is 2K sports. And i like 2K more then EA's sport games except FIFA. That will be all.
  • Goodbye GTA series. It was a great run.
  • Yeah, all I ever hear about is how EA buys game companies and kills them. Kind of like a communist nation, maybe? It has to keep swallowing its neighbor's wealth in order to temporarily sustain itself.
  • EA rolls out just about the worst uninspired games that have just enough polish on them to make a quick buck. I really hope this fails. Clearly EA hopes to make the quick buck off of GTA4 and then dissolve the Take 2
  • Having a larger financial backing could help out Take 2's games, but on the other hand, EA does like to just shove games out the door. Why don't they just buy a large minority stake in Take 2 and get some sort of licensing agreement for their software.
  • Patrick Solomon is a douche and is ignorant about EA Games.

    They are like the Borg assimilating game companies and their game franchises. They fire the original program teams and hire recent grads to churn out half baked sequels that in many ways are worse and buggier than the originals.

    Dave in the cartoon Code Monkeys refers to a company Bolecovision that is the ass of the gaming industry, where awesomeness goes to die when the game company he works for is being sold by Steve Wozniak. If there is any game company that fits that bill today it is EA Games.

    Don't sell to them Take 2.
  • EA can buy TakeTwo as long as Rockstar is separated from TTwo first taking GTA with it. And TakeTwo CEOs/ExecBoard should be fired.

    EA buying TakeTwo is a bad for gaming. Whatever EA touches, turns to crap.
    Oh ! and look at TakeTwo shares today - $26.... LOL. So much for that 64% premium as of now. EA has to now offer $40 or more.
    And if TakeTwo shareholders are smart, they'll wait till Apr 29 or May 1st-2nd week and eval share price ( which would've rocketed ) before making a decision.
    I hope the shareholders are smart enough to stop EA from reaping all the profits of GTA doing no work whatsoever and filling coffers of executives/greedy-CEO. For shareholders, not much will change after 3months....
  • heavylikemetal
    Every game EA touches gets botched. It may be good for investors, but not for gamers as most of us know they are most likely not one in the same.
  • thatmymp5
    Never let EA controls Take 2 otherwise EA will become and behave like Microsoft Corporation, besides having lousy games to us after merges with other companies. Westwood Studio Inc. Everyone around the globe misses Westwood Studio Inc, dearly after eaten by EA!!!

    Microsoft Windows Vista is one of the good example as we called it "Suck!" Expensive yet a lazyman new Windows OS because there is no other company's OS could complete Windows to make a better improvement.

    Non-related EA companies should join forces against this big Otopus giant such as buying EA shares over. Therefore I urge all non EA game publishers join forces against this big monster!