Home
News Post

VideoGamer has posted some more news about the ongoing soap opera between Take-Two and EA.

Quote:
"EA has today announced that it is amending its tender offer for all the currently outstanding shares of common stock of Take-Two Interactive Software. These amendments come in light of the actions disclosed by Take-Two on March 26, 2008, including its adoption of a poison pill - a strategy used by corporations to discourage a hostile takeover by another company by making its stock less attractive to the acquirer.

Amendments to EA's tender offer include extending the deadline until 11:59 pm, New York City time on April 18, 2008, unless further extended. The offer was previously set to expire on April 11."

Member Comments
# 1 Mintsa @ 03/28/08 09:45 AM
Honestly...I wish this thing would just end. If there is goona be no NBA 2K9 next season. I wouls just rather know now rather than later. Just give me the bad news and move on.
 
# 2 bigfnjoe96 @ 03/28/08 09:48 AM
I see we have a game of CHICKEN going-on here...
 
# 3 Rules @ 03/28/08 09:49 AM
I really hope this does not go through. This would be the final blow to any sports competition other than Sony's MLB: The Show.
 
# 4 allBthere @ 03/28/08 11:44 AM
EA's "Deadline" ppffffffft.

if it passes there will be a new 'deadline' nice try bully.

I hope TT gets private eyes to find flaws in EA's company and report them moving their focus inward...maybe a flaw in the financials, or cause alligations of fraud etc... psycho terrorism at its best. Fight slime w/ slime
 
# 5 bkfount @ 03/28/08 11:47 AM
Quote:
Originally Posted by allBthere
EA's "Deadline" ppffffffft.

if it passes there will be a new 'deadline' nice try bully.

I hope TT gets private eyes to find flaws in EA's company and report them moving their focus inward...maybe a flaw in the financials, or cause alligations of fraud etc... psycho terrorism at its best. Fight slime w/ slime
lol, it's called negotiating. Take Two doesn't want to sell for EA's price, and EA wants to get them now. They'll play the waiting game though, as there's no one really out there who will pay more, and take two's stockholders might get rest less with EA's offer sitting out there.

EA has already said they'll take it hostile, so it just depends on how long they'll wait to do it. Take Two really can't do anything unless they find someone else to buy them.
 
# 6 allBthere @ 03/28/08 12:00 PM
Quote:
Originally Posted by bkfount
lol, it's called negotiating. Take Two doesn't want to sell for EA's price, and EA wants to get them now. They'll play the waiting game though, as there's no one really out there who will pay more, and take two's stockholders might get rest less with EA's offer sitting out there.

EA has already said they'll take it hostile, so it just depends on how long they'll wait to do it. Take Two really can't do anything unless they find someone else to buy them.
Ok, first...TT doesn't NEED anyone to buy them...why is this an issue? They were not looking to be taken over, so why would they have to replece EA w/ some other company - the goal is to remain independent or sovereign in my view.
second, EA is not waiting to 'take it hostile' ..it's on! ...the deadline is a threat that they won't offer that price per share after april 18...they've done all they can less raising the price -it's up to the TT shareholders now.
 
# 7 bkfount @ 03/28/08 03:08 PM
Quote:
Originally Posted by allBthere
Ok, first...TT doesn't NEED anyone to buy them...why is this an issue? They were not looking to be taken over, so why would they have to replece EA w/ some other company - the goal is to remain independent or sovereign in my view.
second, EA is not waiting to 'take it hostile' ..it's on! ...the deadline is a threat that they won't offer that price per share after april 18...they've done all they can less raising the price -it's up to the TT shareholders now.
actually, take two has said otherwise by their actions, as they've been looking for buyers on their own for years.

here's an article from last year.
http://money.cnn.com/2007/03/19/comm...ming/index.htm

and in january 2006
http://www.gamespot.com/news/6143391.html

There will be no other company coming along that can offer cash like EA, as well as the ease of moving the company under it's umbrella. In one of the above articles, MS says they'd never buy another 3rd party publisher again because of the profit loss from a developer moving to only one platform
 
# 8 allBthere @ 03/28/08 03:27 PM
Quote:
Originally Posted by bkfount
actually, take two has said otherwise by their actions, as they've been looking for buyers on their own for years.

here's an article from last year.
http://money.cnn.com/2007/03/19/comm...ming/index.htm

and in january 2006
http://www.gamespot.com/news/6143391.html

There will be no other company coming along that can offer cash like EA, as well as the ease of moving the company under it's umbrella. In one of the above articles, MS says they'd never buy another 3rd party publisher again because of the profit loss from a developer moving to only one platform
very interesting articles. Since the 2007 article the shareholders fired the entire board and execs and put in new placements - presumeably to get the company into a profit making venture. Since that point I was unaware that shareholders and/or management were wanting to be taken over (and is that debateable?)
One cool thing in the 2007 article is " Ubisoft, for instance, has made it known it would like to start a sports brand to compete with Electronic Arts (Charts), makers of the popular "Madden" series. EA, meanwhile, would likely make a bid as well."
I didn't know they were interested in making sports titles and they are so talented that they would most likely rock, however this year Ubisoft CEO already stated they are not looking for big acquisitions

I still think that if TT is profitable for their current fiscal year (or after GTA) why would they want to sell, especially when their stock could have a revival?

One more thing, if they do sell it could be to a venture capital company or media company which isn't already a vid game publisher.

In any case nice find on those articles, I just don't think TT NEEDS to sell to anyone. And if they do, why is management resisting EA? The price? If it was 3 billion would they be willing? Is it simply because it is EA specifically? Those would be some interesting questions to have answered by TT execs.
 
# 9 Spectre @ 03/28/08 03:32 PM
Quote:
Originally Posted by bkfount
actually, take two has said otherwise by their actions, as they've been looking for buyers on their own for years.

here's an article from last year.
http://money.cnn.com/2007/03/19/comm...ming/index.htm

and in january 2006
http://www.gamespot.com/news/6143391.html
There's really no relevance to those articles- they were all written when T2 was under different leadership. The article from March of last year in fact talks about the "shareholder revolt" that preceded the board changes at T2. It's like citing news from 2000 as far as I'm concerned- the financial situation is completely different.

T2 is considering all options right now, whether its considering as an independent entity or getting together with a 3rd party.

My bet is that T2 stays independent- T2 outperformed Wall Street estimates in the last quarter, posting lower losses than expected. GTA is going to give them a big boost and T2 shareholders would be ill-advised to sell now. EA can't simply pay any price, if they paid $30 a share, it's going to mean an additional $300 million to their initial offer, which isn't chump change.

Here's a far more recent article that offers a fair appraisal of the situation, I agree 100% with it. Take 2 has all the cards in their hand. EA is approaching this like Take 2 will just roll over but no educated board or shareholder will sell now. As the article says, EA just doesn't get it. They have NOTHING to play with.

Quote:
You can't play good hardball against someone wielding a big mitt. Take-Two is on the rise, and EA isn't doing itself any favors if it really wants to acquire the company.
That bears repeating, because I'm starting to think that EA has no intention of actually buying the company. It just wants to distract Take-Two, when it should be focusing on next month's release of the highly anticipated Grand Theft Auto IV.
I'm sure EA wouldn't mind owning Take-Two, which has sequel-spewing franchises in Grand Theft Auto, BioShock, Bully, Manhunt, and Carnival Games. Take-Two also has a modest yet spunky line of sport games that would fit right into the EA Sports powerhouse brand.
However, EA knows that it can't succeed, especially at the price it's offering.
http://www.fool.com/investing/high-g...nt-get-it.aspx
 
# 10 allBthere @ 03/28/08 03:40 PM
[quote=Spectre;2038255382]There's really no relevance to those articles- they were all written when T2 was under different leadership. The article from March of last year in fact talks about the "shareholder revolt" that preceded the board changes at T2. It's like citing news from 2000 as far as I'm concerned- the financial situation is completely different.

T2 is considering all options right now, whether its considering as an independent entity or getting together with a 3rd party.

My bet is that T2 stays independent- T2 outperformed Wall Street estimates in the last quarter, posting lower losses than expected. GTA is going to give them a big boost and T2 shareholders would be ill-advised to sell now.[/quote]

To me, that is everything and I agree. The stock in the last five years has been at or around this level (ea's bid level) 5 times, and shareholders can reasonably expec these share prices again regardless of EA's offer. - Point being, they don't gain anything other than selling their shares at the current 52 week high - so why give them to EA? The shareholder must feel as if he is GAINING significant money or feel like it's a real deal he is getting in this buyout, but he is not getting that.

On more thing of interest though is that management has only stated to the shareholders that the only reason they should refuse EA is because it's not enough money! Nothing as I recall was in regards to being with a "quality company" and allowing their very original ip's to "move forward" etc... no pride appeal at all. Investing in big companies isn't for 'flipper's' or people wanting to make big bucks quickly - it's more long-term investments w/ some pride in the company that they own..so it was strange that this was not even an issue (even though the biggest motivation for investors is money imo, that sense of participation should be played to as well).
 
# 11 Spectre @ 03/28/08 03:48 PM
Exactly- it would be pure idiocy for them to sell now. There is still some uncertainty with GTA shares and thus the expected profits of GTA aren't completely factored into the share price right now.

This game has the potential to be the biggest video game release of all time and those sales will only help the stock. Here's an analogy- Apple shares were trading at about $100 in May 07, a month before the iPhone was released. By the time the iPhone had been released, the stock had climbed to $125 and kept climbing to a January 08 price of $200. The companies are completely different (Apple is far more diversified) but you get the picture.

Take 2 has called EA's bluff- EA makes these artificial deadlines but you better believe they're going to listen if T2 comes to them in June and asks for a merger. Nobody is going to be scared by the April 18th deadline.

Like I said, T2 is considering all options right now, whether it be continuing as an independent publisher or joining with some third parties- hell, it might not even be EA when all is said and done. It's silly to make bold proclamations in either direction.
 
# 12 CMH @ 03/28/08 05:16 PM
Quote:
Originally Posted by allBthere
Ok, first...TT doesn't NEED anyone to buy them...why is this an issue? They were not looking to be taken over, so why would they have to replece EA w/ some other company - the goal is to remain independent or sovereign in my view.
second, EA is not waiting to 'take it hostile' ..it's on! ...the deadline is a threat that they won't offer that price per share after april 18...they've done all they can less raising the price -it's up to the TT shareholders now.
The bolded part answers your first point.

TT doesn't have to sell but it's up to the shareholders. If they can make more money now than later then they'll take advantage.

Right now, TT is trying to hold them off by convincing them that the GTAIV release will increase the stock price and make them more money.

Of course, EA is trying to convince the stockholders that the stock price will never be this valuable again and no one would pay the price of the new stock when GTAIV releases. Then since no one will buy they'll have to wait for the price to drop again and EA is warning them that it'll drop way below today's value because they won't have many future products with high potential.

So the message is, sell now or sell less later.
 
# 13 NYG_Meth @ 04/01/08 03:46 PM
Quote:
Originally Posted by kcxiv
Over on the 2k forums in the boxing section, the guy that works for 2k is constantly asked abut Prizefighter info. He goes on to say that he cant put ot anything else until april 11'th. Isnt that when the first deadline was? Something is freaking fishy. He said, on that day he will give the reason why he couldnt post anything.
For what it's worth, I can assure you the game is actively being worked on.
 
# 14 allBthere @ 04/01/08 04:19 PM
Quote:
Originally Posted by YankeePride
The bolded part answers your first point.

TT doesn't have to sell but it's up to the shareholders. If they can make more money now than later then they'll take advantage.

Right now, TT is trying to hold them off by convincing them that the GTAIV release will increase the stock price and make them more money.

Of course, EA is trying to convince the stockholders that the stock price will never be this valuable again and no one would pay the price of the new stock when GTAIV releases. Then since no one will buy they'll have to wait for the price to drop again and EA is warning them that it'll drop way below today's value because they won't have many future products with high potential.

So the message is, sell now or sell less later.
I know this, and I know that's what EA's messege is. My point is that OTHERS are trying to say that TT has a giant 'save me' tattoo inked into their forehead. Some people think that they MUST find a suitor to buy them. I was pointing out that they do not and can continue on trading as per usual. Some people think either EA buys them or someone else needs to. This isn't the case.

In other words, yes the shareholders have to decide if they are intimidated by EA's messege or not, but they do not have to be convinced that some other company will buy out TT to make them happy, because they don't need to believe that to be secure in their investment.
 
# 15 BlackNGold @ 04/02/08 11:38 AM
T2's market price already reflected the anticipated # of GTA copies that will sell. If its sales beat expectations by a wide margin, then their share price will slightly increase. But not by much. The main reason T2's stock is where it's at right now is because of EA's offer, people have been buying their stock in anticipation of another larger offer by EA. It was hovering around $17/share before the EA offer then rocketed to $26 after the first buyout offer was announced. T2's management isn't the best and no one has much confiedence in them. Maybe part of the problem could be that their financial advosors were the late Bear Stearns.

T2 is definitely interested in selling to EA. They extended an offer to negotiate with EA immediately following the release of Grand Theft Auto IV and, subject to the fiduciary duties of the Board of Directors, offered not to negotiate with any other third parties in the interim without first contacting EA.
 

Post A Comment
Only OS members can post comments
Please login or register to post a comment.