EA Offers To "Save" Take Two

From outrageous GTA IV revenue.

http://www.eatake2.com/

Right now, Take-Two’s future is uncertain. Take-Two’s creative teams make fantastic games and the company has gotten some good interim support from a group of new corporate leaders. But Take-Two is facing a host of threats and – with or without combination with EA – we believe there is a strong likelihood that the company will be sold in the not-too-distant future.

We also believe that EA’s proposal to acquire Take-Two is a good one for the people that make the games or are involved in leading these creative teams. We’re offering stable management with an executive team that truly understands games. EA has a powerful publishing capability. We want to offer these and other advantages to Take-Two’s creative teams and provide them an environment that shields these teams from unnecessary interference and allows them to keep making great games.

For people who buy and play games, know that we too are fans of Take-Two and Rockstar products and feel we can provide their creative teams with the support they deserve to continue to bring you more of their great games in the future.

A company about to release GTA IV = company with uncertain future?

1. Acquire NFL exclusive license starting license arms war.
2. Acquire NCAA exclusive license.
3. Buy company that makes competing NBA and NHL games and owns MLB license.
4. Monopoly sports publisher status achieved.
5. ???
6. Profit.

From the same link benji provided:

Forward Looking Statements

Some statements set forth in this press release, including those regarding EA’s proposal to acquire Take-Two and the expected impact of the acquisition on EA’s strategic and operational plans and financial results, contain forward-looking statements that are subject to change. Statements including words such as "anticipate", "believe", “estimate” or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which could cause results to differ materially from the expectations expressed in these forward-looking statements

...EA undertakes no duty to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

WTF

Update:
http://biz.yahoo.com/bw/080224/20080224005068.html?.v=1

Take-Two’s Board of Directors has thoroughly reviewed EA’s unsolicited proposal with the assistance of its independent financial and legal advisors and concluded that the proposal is inadequate in multiple respects and not in the best interests of Take-Two’s stockholders.

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.
...
Mr. Zelnick added, “While the Board believes that entering into discussions with EA at this time is not in the best interests of shareholders, we had offered to enter into a good-faith dialogue with EA to determine if our companies can reach common ground on the appropriate value of Take-Two as a first step to realizing a mutually beneficially transaction. However, given the great importance of the Grand Theft Auto IV launch to the value of Take-Two, the Board has determined that the only prudent and responsible course for our Company and its stockholders is to defer these discussions until immediately after Grand Theft Auto IV is released. Therefore, we offered to initiate discussions with EA on April 30th, 2008 (the day after Grand Theft Auto IV is scheduled to release). We believe this offer demonstrated our commitment to pursuing all avenues to maximize stockholder value, while we believe that EA’s refusal to entertain this path is evidence of their desire to acquire Take-Two at a significant discount, whereas we believe this value rightly belongs to our stockholders."

The EA CEO sounds like a real douche.

While I appreciate its courteous tone and value our ongoing dialogue, I am disappointed that you have rejected Electronic Arts

We continue to believe that an acquisition of Take-Two by EA is in the best interests of your shareholders, employees and other constituents, and we remain interested in acquiring Take-Two

We believe that Take-Two’s shareholders would not be well-served by any further delay in negotiating and completing the proposed merger

We also believe that any delay in this proposed transaction works against the interest of Take-Two’s shareholders

Our strong preference is to conduct a private negotiation. 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.

We place significant value on the ability to close the transaction relatively quickly so that EA’s strong publishing and distribution network, including our global packaged goods, online and wireless publishing organizations, can positively impact the catalogue sales of GTA IV and also the launch and sale of titles released later this year.

You can pretty much see that the CEO is pretty much pissed off at the rejection that he still repeats his terms which were previously declined by Take-Two:

We have completed a thorough review of Take-Two’s public information and are prepared to move forward immediately to consummate a transaction with minimum disruption to Take-Two. We believe that with adequate access to the necessary information we can complete all required due diligence in approximately 2 weeks. We believe that our due diligence review would require limited access to a small number of senior executives of Take-Two and its legal, accounting and financial advisors. Importantly, no interaction with any of the studio leaders will be required until our other due diligence is completed and the material terms of a transaction are agreed to.

Considerable time and resources have been put forth in developing this offer, and our Board of Directors has approved its delivery to Take-Two. Our offer is not conditioned on any financing requirement. However, our offer is subject to the satisfactory completion of our due diligence review of Take-Two, the negotiation and execution of mutually acceptable definitive transaction agreements and the satisfaction of customary conditions to be set forth in such agreements.

Considerable thought, time and resources have been put forth in developing this offer, and our Board of Directors unanimously supports it. Our offer is not conditioned on any financing requirement. It is subject to the satisfactory completion of a due diligence review of Take-Two, the negotiation and execution of mutually acceptable definitive transaction agreements, and the satisfaction of customary conditions to be set forth in such agreements.

We are prepared to move forward immediately with formal due diligence and the negotiation and execution of a definitive merger agreement and believe that with adequate access to the necessary information and people, we can complete both in approximately two weeks. We believe that our due diligence review can be completed with minimal disruption, requiring only limited access to a small number of senior executives of Take-Two and its legal, accounting and financial advisors. We also have prepared a draft merger agreement that we can forward to you immediately

While I appreciate its courteous tone and value our ongoing dialogue, I am disappointed that you have rejected Electronic Arts

WTF? Thou shalt not defy EA.

Hostile takeover, anyone?

GTA IV was obviously the main point, as it's sales should significantly help Take-Two. Kudos to the Take-Two guy for recognizing this early. However, you can see that Take-Two is still in trouble because they are open for dialog with EA about merging after GTA IV is released.

Would you kill 2K Sports?
Any integration starts with our respect for the teams and people that make great games. Beyond that, it’s too early to discuss plans for managing Take-Two.

Haha, duh. Snatch the MLB license, merge the programmers to EA's titles, and yes, bye-bye 2K sports.

The bottom line is, if they merge now, Take-Two loses money, that's why EA want's them before GTA IV is released. Let them finish the game, and cash in before it's released.

"EA want's them before GTA IV is released. Let them finish the game, and cash in before it's released."

That's why I lol'd when I read this pitch from the EA CEO. EA obviously wants a piece of the GTA IV pie:

We place significant value on the ability to close the transaction relatively quickly so that EA’s strong publishing and distribution network, including our global packaged goods, online and wireless publishing organizations, can positively impact the catalogue sales of GTA IV and also the launch and sale of titles released later this year.

EA is trying to buy everything now. soon we will have be stuck playing watered down censored games from EA

Interesting article from IGN to further add to our nightmare that is the end of take-two: http://sports.ign.com/articles/855/855490p1.html

Fucking EA, I'm glad they didn't screw up the Crysis launch, but this is ridiculous...EA is just behaving like the bully of gaming nowadays, they should take a look at their own affiliates and clean their own house first before going all conquistador on everyone. Unfortunately, that's not likely to happen with a giant corporation like that...

Microsoft was broken up for taking over the OS world but taking over the sports game world is too minor a monopoly? Either way they're keeping the little guy out with either intimidation or buyout tactics. If EA acquires Take 2 (which looks pretty likely) they should actually work together to give us great games instead of crap or mediocre games like we're getting now....2k9 on PC? i might applaud...

Microsoft was broken up for taking over the OS world but taking over the sports game world is too minor a monopoly?

They were? What are the multiple companies that were made from the corpse of Microsoft?

Microsoft's legal troubles were not from having a high market share in the OS market. It is not illegal to have a monopoly.

Microsoft was broken up for taking over the OS world but taking over the sports game world is too minor a monopoly?

They were? What are the multiple companies that were made from the corpse of Microsoft?

Microsoft's legal troubles were not from having a high market share in the OS market. It is not illegal to have a monopoly.

My mistake, it was breaching of antitrust legislation which apparently is a completely different thing.

You claimed Microsoft was broken up for "taking over the OS world" or acquiring a monopoly. Neither of which is true. It is not illegal to acquire a monopoly (or effective monopoly as in Microsoft's case) nor was Microsoft broken up.

The continuous actions against Microsoft have been due to accusations they are abusing their monopoly power to force OEMs into doing various things, something that is illegal.

How would EA save Take Two when they put out piles of shit like NBA Live 08 for PC?

EA is one of the companies that i look to stay away from when it comes to video games.

I assume they were referring to saving the company financially.

If Assassin's Creed sales stabilized Ubisoft from being bought out by EA(EA own around 14% of Ubisoft stock), what do you think GTA IV will do to Take Two? Ubisoft is also interested in purchasing Take Two, but their pockets are not as dep as EA's. They are all trying to catch up to Activision since they (claimed)became the world's biggest 3rd party video game developer when they merged with Vivendi.

I don't see Take Two going anywhere.

Now they're going for the hostile takeover.

Electronic Arts Inc. is taking its battle for Take-Two Interactive Software Inc. directly to the rival videogame publisher's shareholders.

Following the rejection of its unsolicited bid to acquire Take-Two, EA launched a tender offer to acquire all of Take-Two's outstanding shares for $26 each, the price it offered the company last month. The move signals that EA's attempt to gain control of Take-Two, publisher of the blockbuster Grand Theft Auto game, is turning hostile.

In response to the move, Take-Two's board recommended Thursday that its shareholders take no action at this time, saying it would advise investors on its position within 10 business days.
...
Take-Two has consistently rejected the offer as too low and ill-timed. It also said it has been approached by other potential acquirers since the bid was announced, but didn't indicate it was in negotiations with other companies about a deal.

EA's Take-Two Saga Turns Hostile

Wonder if it's a good time to buy stock in Take-two. Buy now, wait till after GTA is released and the stock increases, and then sell for a nice little profit.

He also claimed that the bid wasn't, primarily at least, motivated by a desire to see a competitor in sports games removed from the field. "Sports games are secondary consideration here," he said.

So they would suffocate a superior product like the NBA 2k series out of pride.

He also claimed that the bid wasn't, primarily at least, motivated by a desire to see a competitor in sports games removed from the field. "Sports games are secondary consideration here," he said.

So they would suffocate a superior product like the NBA 2k series out of pride.

No doubt they'd kill the series, but there's still hope that they'll implement the positive aspects of 2k into NBA Live to make it semi-decent.

Nobody disses the empire's offer and gets away with it. Hostile takeover, for the horde!

After negotiations failed, they're resorting to brute force. EA is trying to buy out its competition and when they have monopolized the gaming industry, they'll force us to play their crappy games designed with half-assed efforts.

NBA 2K9 Live 09, anyone?

EA is trying to buy out its competition and when they have monopolized the gaming industry(

Microsoft is the only hope when that happens.