EA Launches Hostile Takeover Bid for T2

13
Mar
2008
By Gerard | 13th Mar 2008 at 15:31 GMT in General | 33 Comments
[img]http://tbn0.google.com/images?q=tbn:e3Kbg0ibAMaprM:http://tech.blorge.com/wp-content/uploads/2007/10/img-6824-ea-logo-2.jpg[/img]EA has made an appeal to Take Two's shareholders, offering them $26 per share to force the merger through without the consent of the company's board. Previously, Take Two's board repeatedly rejected takeover offers from EA, including one for $26 per share, which totals $2 billion USD, a premium over the current value of $15.83 per share which values the company at roughly $1.2b. The company has to issue a recommendation to its shareholders within ten working days. EA's CEO John Riccitiello encourages Shareholders to take advantage of the offer:

"This is a great opportunity for Take-Two shareholders. We believe Take-Two investors will see our tender offer as the best way to maximize the value of their investment in Take-Two. This tender offer provides a clear process to complete the proposed transaction. For EA shareholders, the combination would add additional intellectual properties to our already strong portfolio and welcome Take-Two's talented creative teams to the great development organization we've built at EA."


Take-Two previously commented that the offer undervalued the company and its assets, and it is obvious that the long-awaited much-hyped launch of GTA IV next month is worth a lot to the company. Take Two also said that other parties had approached it regarding a merger, but that it hadn’t entered into any negotiations with other companies about a deal.

Our members discussed EA's previous offer with a resounding rejection of the takeover. It was felt that if Take Two was merged into EA, the Rockstar Games studios should remain separate (rather than be directly merged into EA) or turn independent. Voice your thoughts in our forums.
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GTA Don's photo
GTA Don 13th March, 2008 @ 16:11 - Permalink
They really don't give up, do they? I agree, they are offering a lot of money, but I don't think that Take-Two should go through with this. If they do decide to accept EA's offer, then I think Rockstar Games should stay separate and keep on making GTA games.
Connor's photo
Connor 13th March, 2008 @ 16:11 - Permalink
Why can't they just accept no for an answer, I'd hate it if they had their name on GTA IV...
Spider-Vice's photo
Spider-Vice 13th March, 2008 @ 16:44 - Permalink

Why can't they just accept no for an answer, I'd hate it if they had their name on GTA IV...

Yeah, it would be annoying putting the GTA IV disk and hear "EA Games - Challenge Everything" instead of a good ol' Rockstar intro.
NotYouHaha's photo
NotYouHaha 13th March, 2008 @ 16:50 - Permalink
I'm really starting to hate them. They just make many games without effort, they get money by hoping one of their games will be awesome. All they want is money. :pissedred:
chris82's photo
chris82 13th March, 2008 @ 17:00 - Permalink
I don't think T2's shareholder's will "take advantage" of this because they know what will happen to T2's stock when GTAIV is released.
Thomas.'s photo
Thomas. 13th March, 2008 @ 17:03 - Permalink
Foolish move by EA games if you ask me. If Take-2 are indeed bought by EA then Take-2 and it's shareholders are foolish too. If EA do get Take-2 and Rockstar Games, I will never play a GTA game by EA Games.
Connor's photo
Connor 13th March, 2008 @ 19:36 - Permalink
Lol, if that happens, I won't be buying GTA anymore...

...I'll be downloading it...

...I don't fancy wasting my money on EA.
Mike356's photo
Mike356 13th March, 2008 @ 19:43 - Permalink
yeah I only wanna hear challenge everything on need for speed or the sims on gta I want to hear a good tune to get you hyped for the game
Harwood Butcher's photo
Harwood Butcher 13th March, 2008 @ 20:04 - Permalink

They really don't give up, do they? I agree, they are offering a lot of money, but I don't think that Take-Two should go through with this. If they do decide to accept EA's offer, then I think Rockstar Games should stay separate and keep on making GTA games.


Rockstar doesn't own the rights to the Grand Theft Auto series.
GTA Don's photo
GTA Don 13th March, 2008 @ 20:59 - Permalink
Oh yeah. T2 should sell the rights to GTA to Rockstar. I would keep on buying GTA, EA did say they wouldn't change anything in GTA IV, I would rather watch a R* splash when the game starts up rather than an EA one.
Mendoza's photo
Mendoza 13th March, 2008 @ 21:15 - Permalink
Rockstar should just buy the stock and take over Take-2 to end this problem with EA
MishoM's photo
MishoM 13th March, 2008 @ 22:48 - Permalink
Wouldn't it be hilarious if Microsoft just swooped in and bought Rockstar Games or Take-2. :P Or even funnier, they bought EA right after EA bought Take-2. :P
Charger's photo
Charger 13th March, 2008 @ 23:28 - Permalink

Wouldn't it be hilarious if Microsoft just swooped in and bought Rockstar Games or Take-2. :P Or even funnier, they bought EA right after EA bought Take-2. :P

It wouldn't, I'll be pissed off.
rockstarrem's photo
rockstarrem 14th March, 2008 @ 00:17 - Permalink
I have a feeling they're going to accept. As much as I don't want them too, looks like it's going to happen.
STL67's photo
STL67 14th March, 2008 @ 00:40 - Permalink
Its true that this deal will most likely go through, although I doubt the Houser bros. would let EA change their company/game/series etc. too a degree where it sucked ass, Im sure theyd become independent and make their best efforts to make sure the GTA series stands up to its name, so Im not that worried.
CHEW-GUN's photo
CHEW-GUN 14th March, 2008 @ 01:00 - Permalink

Oh yeah. T2 should sell the rights to GTA to Rockstar. I would keep on buying GTA, EA did say they wouldn't change anything in GTA IV, I would rather watch a R* splash when the game starts up rather than an EA one.


Dude,this isnt about just the stupid intro that we all skip anyways ;)

the entire feeling of the GTA games would be RUINED!

From the content to the storylines,everything.They maybe would look nice and graphically advanced,but hell,no GTA fan ever cares much about that.

I personally feel very assured that T2 will NOT agree with the offer,not before GTA IV is released anyways. And After the release,EA said themselves that they wouldnt be interested in T2 anymore.
PhoenixGTA's photo
PhoenixGTA 14th March, 2008 @ 01:03 - Permalink
I think we all know that this would be the death of the GTA series as we now know it if EA has their greedy hands in it. EA's command and conquer approach to acquiring developers and publishers as their history shows, do not do any games justice. As sad as this might seem, I would rather see Microsoft come in and save the day if Take Two were really on the fritz of being acquired. EA, it seems, is turning into an obvious monopoly.
Harwood Butcher's photo
Harwood Butcher 14th March, 2008 @ 02:14 - Permalink

Oh yeah. T2 should sell the rights to GTA to Rockstar. I would keep on buying GTA, EA did say they wouldn't change anything in GTA IV, I would rather watch a R* splash when the game starts up rather than an EA one.


It would be very difficult for EA not to change the way the GTA games are if they don't have the RAGE engine...assuming that Rockstar leaves Take Two prior to the possible take over.
Gerard's photo
Gerard 14th March, 2008 @ 02:21 - Permalink
Let's look at EA's history of games... FIFA, Need for Speed, SimCity, Medal of Honor, The Sims, James Bond, Battlefield, Madden NFL, Burnout, Crysis, Army of Two, and that classic.... Theme Hospital

Can you see GTA IV being in that list?
Harwood Butcher's photo
Harwood Butcher 14th March, 2008 @ 02:28 - Permalink

Let's look at EA's history of games... FIFA, Need for Speed, SimCity, Medal of Honor, The Sims, James Bond, Battlefield, Madden NFL, Burnout, Crysis, Army of Two, and that classic.... Theme Hospital

Can you see GTA IV being in that list?


Absolutely not, because they don't have a free roaming title as massive as Grand Theft Auto.
chris82's photo
chris82 14th March, 2008 @ 02:59 - Permalink

Let's look at EA's history of games... FIFA, Need for Speed, SimCity, Medal of Honor, The Sims, James Bond, Battlefield, Madden NFL, Burnout, Crysis, Army of Two, and that classic.... Theme Hospital

Can you see GTA IV being in that list?


Most of those games are horrible, either will really good graphics and medicore gameplay or nothing at all. EA is a really bad company in how they do business, especially with Madden NFL. They couldn't handle the competition from 2K's better, cheaper football title so they bought all the rights to the NFL teams, now they are the only ones that can make NFL-based games.

Battlefield 2 was good, but fuck EA's greed. Every $20 expansion for The Sims. Every $50 "new game" which is just BF2 with a few new models/maps, etc...etc....

Never happen.
aaa11's photo
aaa11 14th March, 2008 @ 04:13 - Permalink

Wouldn't it be hilarious if Microsoft just swooped in and bought Rockstar Games or Take-2. :P Or even funnier, they bought EA right after EA bought Take-2. :P

It wouldn't, I'll be pissed off.

i agree I don't want dish out $400 just to play gta... hmmm, anyway EA just needs to stop, their too money happy. Mr. Moore wants to be the new bill gates, maybe thats why he split from MS.
tilly's photo
tilly 14th March, 2008 @ 04:44 - Permalink
Im a shareholder of take 2.

what do i do?
Whitey's photo
Whitey 14th March, 2008 @ 04:52 - Permalink

Let's look at EA's history of games... FIFA, Need for Speed, SimCity, Medal of Honor, The Sims, James Bond, Battlefield, Madden NFL, Burnout, Crysis, Army of Two, and that classic.... Theme Hospital

Can you see GTA IV being in that list?


No, never. Army of Two was real fun, but I have a feeling that if EA hadn't acquired the studio, then it would have been much better.
azn's photo
azn 14th March, 2008 @ 06:07 - Permalink
I was a fan of Need for Speed up until Underground 2. The annual releases piss me off and now I stay far away from games created by EA.

GTA shouldn't be on ANYONE'S list apart from T2 or if they sell it to Rockstar. EA should just stay away. They don't give a who about ruining the game by making money and destroying what GTA is known for.
GTA Don's photo
GTA Don 14th March, 2008 @ 07:33 - Permalink

Let's look at EA's history of games... FIFA, Need for Speed, SimCity, Medal of Honor, The Sims, James Bond, Battlefield, Madden NFL, Burnout, Crysis, Army of Two, and that classic.... Theme Hospital

Can you see GTA IV being in that list?


Ugh, hell no. It just sounds wrong.

@ Azn: NFS MW was good...
TheGunslinger's photo
TheGunslinger 14th March, 2008 @ 09:54 - Permalink
T2's share holders can force them to merge with EA? Now i dont know a thing about the business world, but what kind of a fucked up system is that when T2's bosses dont even have full say over what happens in their own company?

First Jack Thompson tries to get GTA banned, now EA threaten to ruin everything good about it. Fate seems to be totaly against GTA.
Davieboy's photo
Davieboy 14th March, 2008 @ 09:59 - Permalink

Im a shareholder of take 2.

what do i do?


what u need 2 do is just keep it and do not sell 2 EA no matter what they give u for it
azn's photo
azn 14th March, 2008 @ 10:07 - Permalink

T2's share holders can force them to merge with EA? Now i dont know a thing about the business world, but what kind of a fucked up system is that when T2's bosses dont even have full say over what happens in their own company?

First Jack Thompson tries to get GTA banned, now EA threaten to ruin everything good about it. Fate seems to be totaly against GTA.



It never works. I just hope T2 doesn't have doubts about the money that EA are offering.


For me, I now refuse to buy games from EA. No matter if it's NFS or Burnout. Which were my favourites from them.
Davieboy's photo
Davieboy 14th March, 2008 @ 10:07 - Permalink

Wouldn't it be hilarious if Microsoft just swooped in and bought Rockstar Games or Take-2. :P Or even funnier, they bought EA right after EA bought Take-2. :P


tbh i dont want no1 to take over T2 but if someone had to take them over i think it should be microsoft because from what ive been seeing lately its seems as if microsoft care about what the gamers want and are not just money grabbers like EA
rockstarrem's photo
rockstarrem 14th March, 2008 @ 11:16 - Permalink
I don't know, I got an email from Take 2 last night (part of a newsletter) and it says this:

Posted Image


For the latest news from Take-Two Interactive Software, Inc. titled:

Take-Two Interactive Software Advises Stockholders To Take No Action In Response To Electronic Arts Offer

Please Visit:
http://ir.take2games...eleaseID=299225

-------------------------------------------------------------------------
To unsubscribe click here:
http://ir.take2games...?companyID=TTWO
-------------------------------------------------------------------------
service provided by Shareholder.com.

Gerard's photo
Gerard 14th March, 2008 @ 13:46 - Permalink

T2's share holders can force them to merge with EA? Now i dont know a thing about the business world, but what kind of a fucked up system is that when T2's bosses dont even have full say over what happens in their own company?


That's how all public companies work. The shareholders BUY their share of the company, which they OWN. The Board of Directors makes decisions on behalf of the shareholders, in order to make them the most money (essentially). The shareholders get a vote on any big issues, and they can force through a vote themselves if they disagree with the Board.
CHEW-GUN's photo
CHEW-GUN 20th March, 2008 @ 15:42 - Permalink

Let's look at EA's history of games... FIFA, Need for Speed, SimCity, Medal of Honor, The Sims, James Bond, Battlefield, Madden NFL, Burnout, Crysis, Army of Two, and that classic.... Theme Hospital

Can you see GTA IV being in that list?


Nope,never

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