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- EA Proposes $2 Billion Acquisition Of Take Two
- Posted 6 months, 1 weeks ago by Veggie Jackson
In their continuing efforts to swallow up the world and everything in it, video game monolith EA proposed an approximately $2 billion buyout of Take-Two Interactive, parent company of Rockstar Games and 2K Games. The offer was made to Take-Two’s executive chairman Strauss Zelnick on Tuesday, and was promptly rejected. EA then decided to go over Zelnick’s head and take the offer public, hoping to entice shareholders with the prospect of $26 per share for a stock that, at the time, sold at around $16. Take-Two’s board of directors took a bit longer, but responded with a polite “thanks, but no thanks” as well.
The main reason for the proposal (as well as the rejection) is, of course, Grand Theft Auto IV. The series’ previous installment sold well over 15 million copies on the PS2 alone, and the franchise as a whole has moved over 60 million, placing it in the top ten franchises in gaming history. Other lucrative properties under the Take-Two umbrella include Midnight Club and Civilization. One would have to assume that if the deal did go through (and there are those who think it still will), EA would have cancelled the 2K Sports series, EA’s leading competitor for sports dominance.
For those who care, here’s the full proposal by EA and the full response from Take-Two.
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Comments
Real simple: They're waiting for $4 billion.
I find it hard to see how a $2 billion offer is "not in the best interests of [Take-Two's] shareholders"...
Tats the way to do it. Buy out your enemies, and watch the profits soar.
Well yeah I agree but somehow I don't feel like it'd be the same coming out of the EA machine. They say they're making changes to stop stifling their talent but who knows.
As long as Rockstar makes it, I'd buy it if it was published by Enron.
It is a negotiation so they have to say no to the first bid. Maybe there stance is more of a "we know they are going to acquire us one way or another so we might as well drive up the price as high as possible." Do that dance.
Even with GTA IV Take Two isn't in the greatest shape. The took out a $140 million dollar loan to continue operating. This will be good for their stockholders but bad for us, the gamers. EA GTA?! Really? I wouldn't buy it...
$16 a share $26 if that went through? wow the shareholders would have been happy