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GamesIndustry has the scoop on EA extending the Take-Two offer and lowering shares. While Next Generation claims Take-Two slamming the offer.

Quote:
"Electronic Arts continues to pursue Take-Two shareholders by extending its tender offer until May 16, but lowering the price to USD 25.74 per share.

The new price reflects additional shares issued to Zelnick Media following stockholders approval of Take-Two's incentive stock plan at yesterday's annual general meeting.

Valued at approximately USD 2 billion in cash, EA's aggregate consideration for Take-Two shares remains unchanged."

Member Comments
# 1 NYG_Meth @ 04/18/08 03:04 PM
I still have a job a little while longer!
 
# 2 allBthere @ 04/18/08 03:28 PM
I knew it, even posted a month ago that the 'deadline' would just keep being pushed back and back, and that in all reality it isn't a 'deadline' at all. It's meaningless.

If I was a shareholder I can sell for what they're offering on the open market, so why sell to EA? The pps right now is basically waht EA is offering.

I'm calling a $27 + pps after gta4 drops and it shatters every game sales record in history...so in that case they can sell in the open market for more than what EA is offering.

people who say the pps is only where it is because of the EA offer to begin with, need to explain why it's been at these levels 5 times in the past 5 years. Game companies pps's are cyclical, even EA almost religiously has 52 week low's in june/july and highs in aug/sept.
 
# 3 BledsoeHoF @ 04/18/08 03:58 PM
Looks like EAs bullying technique is failing miserably. T2 isnt afraid of the Evil Empire.
 
# 4 Steelersfan85 @ 04/18/08 04:09 PM
The FTC (Federal Trade Commission) Still Has to Approve a possible merger between the two. I don't think Take-Two will give in at all until at least the FTC has made their decision.

http://xbox360.ign.com/articles/867/867302p1.html
 
# 5 wildthing2022000 @ 04/18/08 04:47 PM
Quote:
Originally Posted by allBthere
I knew it, even posted a month ago that the 'deadline' would just keep being pushed back and back, and that in all reality it isn't a 'deadline' at all. It's meaningless.

If I was a shareholder I can sell for what they're offering on the open market, so why sell to EA? The pps right now is basically waht EA is offering.

I'm calling a $27 + pps after gta4 drops and it shatters every game sales record in history...so in that case they can sell in the open market for more than what EA is offering.

people who say the pps is only where it is because of the EA offer to begin with, need to explain why it's been at these levels 5 times in the past 5 years. Game companies pps's are cyclical, even EA almost religiously has 52 week low's in june/july and highs in aug/sept.

So EA's bid of $26 a share had no effect on Take Two's stock jumping $9 dollar a share in 1 weekend.

http://money.cnn.com/quote/quote.htm...=TTWO&time=6mo
Yeah, it just happened for no reason......

http://finance.yahoo.com/echarts?s=T...urce=undefined
Even looking at 5 years it never went up more than $5 a share in a week


All I'm saying is that when an offer is made for a company the price of the stock will match the offering price within a day, look at Yahoo. It's price jumped to match Microsoft's bid that day.

No bid from EA means Take Two shares are still in the $17-$18 per share range.
 
# 6 allBthere @ 04/18/08 07:11 PM
Quote:
Originally Posted by wildthing2022000
So EA's bid of $26 a share had no effect on Take Two's stock jumping $9 dollar a share in 1 weekend.

http://money.cnn.com/quote/quote.htm...=TTWO&time=6mo
Yeah, it just happened for no reason......

http://finance.yahoo.com/echarts?s=T...urce=undefined
Even looking at 5 years it never went up more than $5 a share in a week


All I'm saying is that when an offer is made for a company the price of the stock will match the offering price within a day, look at Yahoo. It's price jumped to match Microsoft's bid that day.

No bid from EA means Take Two shares are still in the $17-$18 per share range.
hey mr. sarcastic, how are you?
There is no doubt that the bid had reaction on the pps...but my point is that it doesn't represent a false value as per TT. It's impossible to say what the price would be if EA had not made a big...GTA4's so far perfect scores and soon to be sales record breaker could have put it where it is now. After release, I'm sure it would be where it is now.

TT imo IS undervalued at its previous pps - which if you pay attention to stocks can fluctuate wildly and often be undervalued or overvalued.

The price went up way faster than it normally would, but my point is that IT WOULD HAVE BEEN HERE ANYWAY! get it?

you're putting words in my mouth, i didn't say 'it had no effect' , i said it isn't the only reason....hell why did ea come to that amount as an offer in the first place?????? check yourself bubb
 
# 7 DC @ 04/20/08 10:00 AM
Quote:
Originally Posted by NYG_Meth
I still have a job a little while longer!
What title do you work on?
 
# 8 BlackNGold @ 04/20/08 10:34 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.

T2's management isn't the best and no one has much confidence in them for good reason. Look at the whole they are in. Maybe part of the problem could be that their financial advisors were the late Bear Stearns. LoL

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. It's not that they don't want to sell, they want to do it on their terms at their price.
 
# 9 BlyGilmore @ 04/20/08 08:33 PM
Quote:
Originally Posted by wildthing2022000
So EA's bid of $26 a share had no effect on Take Two's stock jumping $9 dollar a share in 1 weekend.

http://money.cnn.com/quote/quote.htm...=TTWO&time=6mo
Yeah, it just happened for no reason......

http://finance.yahoo.com/echarts?s=T...urce=undefined
Even looking at 5 years it never went up more than $5 a share in a week


All I'm saying is that when an offer is made for a company the price of the stock will match the offering price within a day, look at Yahoo. It's price jumped to match Microsoft's bid that day.

No bid from EA means Take Two shares are still in the $17-$18 per share range.
yep. and if EA comes out and says they're no longer interested in Take Two you're going to see their shares plummet ...
 
# 10 allBthere @ 04/20/08 11:21 PM
Quote:
Originally Posted by BlyGilmore
yep. and if EA comes out and says they're no longer interested in Take Two you're going to see their shares plummet ...
really....
in that case don't you think they would withdraw the offer, only to bid again at a much lower price (ie. offer at 18 if the pps was 16)?

GTA4 will sell 16 million copies = lots of revenue. I believe that EA's offer really unveilled a better representation as to the value of TT. It's not a coincidence that EA came up with the figure that they did...they came up with it because they believe that is what TT is actually worth. You think 2 billion is overpriced for TT and all its studios? I certainly don't.
 
# 11 bkfount @ 04/21/08 12:58 AM
Quote:
Originally Posted by allBthere
You think 2 billion is overpriced for TT and all its studios? I certainly don't.
except both Activision and MS have said that what EA is offering is overpriced, and neither would even consider bidding..
 
# 12 allBthere @ 04/21/08 01:36 PM
Quote:
Originally Posted by bkfount
except both Activision and MS have said that what EA is offering is overpriced, and neither would even consider bidding..
they can talk all they want..they're not bidding because they're not interested in acquiring TT at all. If they were, they would be rooting through their IP's and assets and most likely come up with a similar number
 
# 13 BlyGilmore @ 04/22/08 12:00 PM
Quote:
Originally Posted by allBthere
really....
in that case don't you think they would withdraw the offer, only to bid again at a much lower price (ie. offer at 18 if the pps was 16)?

GTA4 will sell 16 million copies = lots of revenue. I believe that EA's offer really unveilled a better representation as to the value of TT. It's not a coincidence that EA came up with the figure that they did...they came up with it because they believe that is what TT is actually worth. You think 2 billion is overpriced for TT and all its studios? I certainly don't.
that's not how this stuff works. if you're a shareholder there's no incentive to sell shares at $16 or $18 that you bought at $16 before all this happened.

Keep in mind the stock rose to its current levels just because of the EA offer. People bought the stock up until $26 a share because they would make money on the sale (a pretty easy idea to comprehend - even if you buy 1,000 shares at say $25 and they sell for $26, well you've made $1,000).

If EA says "forget it, we'll spend our money elsewhere" all of those stocks that were bought to drive the price from $16/17 to $25/26 are going to be sold as quickly as possible. Remember the people who bought those shares did so to make the quick merger buck and are going to run at the first sign of danger.

The result would be the stock nose diving, possibly ending up lower than it was before all of this.

Now Take Two seems to think GTA is their saving grace, and its sure to be a monster. But this is a company that has lost money the past couple of years, and unless another GTA comes out next year, it releasing this year doesn't make them a better company (and if everything goes back to normal, i don't think incredible GTA sales equal $10 a share).

Keep in mind last year Take Two released BioShock, which was one of the big hits of the year, and they STILL lost millions on the year. This is why you're hearing Take Two isn't worth $2 billion. Whoever buys it is buying a flawed company (financially) that doesn't make money.
 
# 14 allBthere @ 04/23/08 11:33 AM
Quote:
Originally Posted by BlyGilmore
that's not how this stuff works. if you're a shareholder there's no incentive to sell shares at $16 or $18 that you bought at $16 before all this happened.

Keep in mind the stock rose to its current levels just because of the EA offer. People bought the stock up until $26 a share because they would make money on the sale (a pretty easy idea to comprehend - even if you buy 1,000 shares at say $25 and they sell for $26, well you've made $1,000).

If EA says "forget it, we'll spend our money elsewhere" all of those stocks that were bought to drive the price from $16/17 to $25/26 are going to be sold as quickly as possible. Remember the people who bought those shares did so to make the quick merger buck and are going to run at the first sign of danger.

The result would be the stock nose diving, possibly ending up lower than it was before all of this.

Now Take Two seems to think GTA is their saving grace, and its sure to be a monster. But this is a company that has lost money the past couple of years, and unless another GTA comes out next year, it releasing this year doesn't make them a better company (and if everything goes back to normal, i don't think incredible GTA sales equal $10 a share).

Keep in mind last year Take Two released BioShock, which was one of the big hits of the year, and they STILL lost millions on the year. This is why you're hearing Take Two isn't worth $2 billion. Whoever buys it is buying a flawed company (financially) that doesn't make money.
Using your rationale, the shareholder would have already sold. Right now the share price is $26.20 with a share volume of 167,000, and it's not even noon. This means that people are buying on the ask. If you bought low you can easily have already sold on the open market for a huge profit.

your comment "thats not how this stuff works" was condescending. I was making a point - EA's extension of the offer is not what is keeping the share price high. People obviously expect the price to go higher since there is still buying at the ask (do you know what this means?) EA thinks the companhy is worth $25.68 per share, other people think it's undervalued even at the price it's at now. Others think it's 17-18 bucks. Whoever is driving the market at the moment is 'right', with videogame stocks, the price never ever stays the same year round, and usually peak around the releases of their key titles. Once sales numbers are released for GTA4 and it's breaking records IMO the pps will go above $27. Press releases, good news, and good pr are important for driving stock prices. Also you're point about the company losing money isn't that big of a deal...the price pershare isn't determined solely by profitability...If you have huge revenues that sure helps.

BTW, I take companies public for a living
 
# 15 BlyGilmore @ 04/23/08 12:04 PM
so are you telling me that if EA came out today and said "we changed our mind" the 2K stocks wouldn't fall?

That $26 price tag was based on EA's interest in buying. Take away that interest and the shares go back the other way.

Or are you arguing that GTA 4 alone is worth more than $10 a share?
 
# 16 allBthere @ 04/23/08 04:25 PM
Quote:
Originally Posted by BlyGilmore
so are you telling me that if EA came out today and said "we changed our mind" the 2K stocks wouldn't fall?

That $26 price tag was based on EA's interest in buying. Take away that interest and the shares go back the other way.

Or are you arguing that GTA 4 alone is worth more than $10 a share?
I'm not sure what would happen if EA withdrew their offer. But to me, they think the company is worth what they offer. My biggest point is that the share price before EA made the offer doesn't imply that the number actually represented the intrisnic value of take two. their 52 week high has been well above that price for the last five years. I think EA offered the number they did because it was fair assumption of the true value of the company.

I think the EA offer 'rushed' the 52 week high for sure...this stock was going up as gta4 approached, but EA's offer was way ahead of the normal climb. I'm not so sure EA withdrawing the offer would affect the stock at all at this point. The smart guy would just sell on the open market above what is being offered by EA (now, or better yet 2 weeks + from now).

your point about gta4 alone being worth 10 bucks a share? ....i don't know...but it's the way game companies work in the stock market. EA's stock 52 week high and low are usually close to 20 bucks apart (61 and 43 this year)...the high is usually around madden and the low usually a month or two before. Understanding this, do we then say that madden is worth $15 a share?

GTA4 will sell 16 million units at least...how much revenue is that? Maybe it is worth 10 bucks a share depending on what percentage of TT's total sales it ends up being. (even though that's not really how it works)

If EA was really sneaky they would have just been buying shares everyday, eating them up at the lower price, before their announcement
 
# 17 BlyGilmore @ 04/24/08 11:50 AM
i read a couple of interesting things on the Level Up web site. First, that this lower EA offer was in response to restricted stock options given to executives of Take Two.

And also that EA at this point is gearing up for a proxy fight.

So things could get really nasty in the next several weeks to months.
 
# 18 allBthere @ 04/24/08 12:50 PM
Quote:
Originally Posted by BlyGilmore
i read a couple of interesting things on the Level Up web site. First, that this lower EA offer was in response to restricted stock options given to executives of Take Two.

And also that EA at this point is gearing up for a proxy fight.

So things could get really nasty in the next several weeks to months.
yeah, there are a lot of 'what if' questions I have in the event of a successful hostile take-over. Mostly about who would stay and who would jump...but just for arguments sake, if all the key personel left the company, EA would still have all the big IP rights. Would the average gamer even know pre-release that gta5 is being developed by different people? Would the sales suffer? and if not, how long would it take people to catch on?
The average gamer is in his 30s, but we still don't know how knowledgeable he is about the industry in general imo
 
# 19 gamerk2 @ 05/01/08 12:35 AM
Not to beat an old dog, but 2k's stock price is up only about 60 cents or so following the GTA:IV release. Most anylysts I have talked to stated that was becuase the figures for the sales of GTA were already factored into its stock price.

And as a slap in the face, EA has lowered its asking price to $25.70, down $.30 from its previous offer.

2k wants to sell for over $30 a share, but it looks like that won't be happening. I now expect 2k to accept EA's offer on the 12 of May, as they have nothing comming out to boost its positions in negotiations at this point.
 
# 20 superjames1992 @ 05/01/08 05:47 PM
Take this as a grain of salt, but 2K's website is not functioning right now. I am sure this is nothing and just technical difficulties, but still...
 

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