EA postpones Take-Two takeover deadline

Madden publisher agrees not to advance with buyout offer until either FTC concludes regulatory investigation or 45-day lapse following "substantial compliance."

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Those on edge as to whether Electronic Arts will seal its near-$2 billion buyout of Take-Two Interactive will have to wait a bit longer. After Take-Two shareholders leveled a dispassionate gaze at Electronic Arts' hostile bid in May, the Madden publisher announced it would be once again extending its tender offer, saying it would maintain the $25.74-per-share bid until June 16.

The official reason for both the second and third extensions of EA's Take-Two takeover deal was to give the Federal Trade Commission more time to complete its investigation. It now appears as if EA and the FTC have reached an agreement that may create a firm deadline on when the publisher can wrap its hostile advance.

According to a recent Securities and Exchange Commission filing, EA and the FTC reached an agreement on June 3 wherein the regulatory body tweaked its request for additional information pertaining to the buyout. As part of the new arrangement, EA has agreed not to close in on Take-Two until the earlier of either the FTC concluding its investigation or the lapse of 45 days after EA provides "substantial compliance with [the FTC's request for additional information]."

With EA's current tender offer set to expire in two weeks, it's possible that the publisher will once again extend its offer to Take-Two investors as a result of the FTC investigation. Assuming EA provided said "substantial compliance" immediately as of June 3, and the regulatory body's investigation proves ongoing, the publisher would not be able to move forward with its acquisition until July 18 at the earliest.

Discussion

186 comments
Duke_Bootee
Duke_Bootee

If EA takes over Take Two the industry will die

Kashmiro
Kashmiro

Ok just to the guys down there, All Pro Football was quite possibly the worst football game I have ever played, and the reason Madden wasn't updated that much is because the gameplay itself is always pretty tight. EA makes some pretty good games, out of all the games I have EA has made quite a few enjoyable games over this past year, they just never make the best. Besides if they try to push Rockstar, or any other creative geniuses from Take-Two the guys will just leave and we will see their games at other companies.

zhuge_liang_
zhuge_liang_

EA never DID learnt a thing!!! Buying gaming companies won't help them... it's the quality that counts. Obviously, Take2 is quality wise :)

afrothunda312
afrothunda312

I want some company to just swoop in and make a better offer, perhaps just before the deadline, which T2 accepts. Purely just to see the look on Ricticello's face :D

markharris31
markharris31

@hvac I agree wholeheartedly that a pure barter system is a much more stable system than a credit economy. Even the gold standard worked well, since it was physically backed up by a real asset. However, the consumers set price points, not the industries. Over supply leads to lower prices, so by NOT buying you lower the price until it hits the point at which you value the product. Look at our own consoles, the PS3 had 2-3 price cuts in the first year of production because it was too expensive and not enough people were buying. Now it is more in line with consumer value and sales are picking up. Industry is constantly innovating to create the same products cheaper, or new products that consumers will pay a premium for. In the end, you, as the consumer, have the choice. Too expensive? Don't buy it. If the producer wants that item to sell they will lower the price to the point where consumers start buying, or cancel it altogether; perhaps remaking it later at a lower price point using new, cheaper technology. It works the same with the government. If the government limits a technology, then citizens need to inform their representatives that they fervently disagree, and that they will not elect someone unless they are working to remove restrictions from that technology. The systems work just fine, but the consumer or citizen has to apply their will to the situation, instead of being dictated by it.

slintpong
slintpong

Why can't T2 just say no to the offer?

valdarez
valdarez

Exactly salans07! EA didn't do JACK to their football game for 3 years except update the graphics, roster update, and a ton of side game junk. It wasn't until 2K Sports release APF2K8 that EA is finally looking at attempting (and appearing to fail so far) to address the horrible game play issues, presentations, lack of online leagues, basically the things that gamers really want! They sell a 10 year old game with updated graphics and haven't worried about competition since they took over the NFL License. Competition is god, and EA is a horrible company.

salans07
salans07

This is bad for gamers everywhere if this happens. Competetion between the companies and their games is a great thing. EA managed to buy their way to being the only company to use NFL players and pretty much stopped 2K sports from making good football games that were as good if not better than Madden. Good for EA yes good for gamers no, now we have no choice but to play Madden if we want a game with an NFL license and Im sure EA is aware of this since the last few Maddens have been watered down remakes of all the past ones. Give EA time and they will buy the MLB rights and stop MLB2K games. Seems to me that EA is afraid of the competion and wants to buy them all out to save themselves from the sub par games they tend to make anymore.

LindBergh2007
LindBergh2007

skyline7284. there is reason to believe that Sega is more than interested in Take 2 since they lost the "SEGA sports" franchise to them 4 years ago. If EA continues to atempt to buy Take 2 and the GTA franchise then it's going to harm them even more then you think.

skyline7284
skyline7284

I don't think ive ever heard DLC that you pay for cheered for before, but then again i really could care less seeing that i don't have the game nor a 360 or PS3...... Personally i could really care less if EA bought Take Two, i have a hard time seeing who else is intrested though...? Microsft: Doubt It Sony: Doubt It Nintendo: Nope EA: Yes/Bidded THQ: Doubt It Midway: Maybe?? Ubisoft: Doubt It Capcom: Doubt It Activision: Nope Edios: Doubt it Sega: Doubt it So who does that really leave other then EA?

DragFire24
DragFire24

Hell NO! This is the worst thin i'm hearing for years... I love T2 and like their stuff... unlike EA's bulls**t :/ Man, I'm going mad with these EA! always thinking about money and how can they buy out other companies... They should think more on how to construct a game and make something original rather than buying others... (obviously other limited budget gaming companies outclass them...) To the guy that said they are not in the top 10 or top 50 worse games, its obvious why, they have money!! I Love T2 and adore GTA... If they touch it in any way im 100% sure I will never, ever buy their games and give them money. If you, reading this think like me, act like me... Gamers deserve real games not stupid EA's blabla :/

Hvac0120
Hvac0120

@markharris31 Valid points. However, if the industries do not offer a product at a reasonable price and/or the government and/or industry decides to remove a technology from the market, then the consumers do not have a choice. The product has to be available at a competitive price in order for the public to make the purchase and move us forward. The problem with Solar cars in the 90's was that they were too expensive. If you look at the advancements in solar technology, it seems pretty reasonable that, if an industry mass produces a product, the consumers would buy-in and the price would drop as demand rises. The only reason people are so economically conscious at the moment is because of the war and the lack of oil resources. If it were not for this crisis people wouldn't care about getting 35-60 mpg highway and those vehicles wouldn't even be on the market. So where I do see you points and agree. I also feel that the industry helps push us forward by moving forward with their technology. Maybe it isn't "big business" as I said before, but more like MONEY that holds us back. Maybe the world should have stuck with trade instead of I.O.U. pieces of paper? If it didn't cost the industries so much to produce, then the products would be cheaper to make which would bring around better technology at a cheaper price and the public would quickly latch on.

valdarez
valdarez

EA is a horrible company, churning out bad title after bad title and then marketing it to the hilt and turning around to purchase quality companies so they can attempt a little street cred to mask their horrible development and regurgitation policy. Instead of trying to put a company out of business, why don't you take that 2 Billion dollars and make better games EA!!! Don't buy EA games new. If you 'must' play an EA game, then buy it used off eBay or used from GameStop. EA doesn't deserve gamers money. They don't care about us, so we shouldn't care about them.

AwwSooQute
AwwSooQute

EA SUCKS!! They take great ideas wash out any originality and apply their tired features into games that until EA got them RULED!! Take Two, HOLD OUT!! don't let EA ruin your games. Don't give them rights to make GTA5 a 5.3 instead of a 10! Us gamers who know Love you just as you are and will continue to support you awesome games, but EA games are really s*itty

jmace86
jmace86

I have been trying to come up with a reason for me to be against this merger and I finally have. EA do not put their games onto Valve's Steam service, whereas Take Two do (or at least Bioshock, the only Take Two game that I really care about is on Steam). If EA take over Take Two, then Bioshock 2 would probably not come to Steam and that would make me very sad.

markharris31
markharris31

How has EA bungled this? Because they offered a 64% premium on T2's original share price before the offer? Because they've persisted with a buyout bid? Because T2's management declined an offer so they had time to go back and create massive severance packages for T2 executives after a buyout? Because the FTC is doing it's job and requesting more information? Becuase T2 is trying to shop itself around at an inflated price point that EA created for them with their original offer? EA has offered a buyout to T2 execs, and then directly to their shareholders.... so they've bungled it by not taking their offer off the table before the FTC has had a chance to fully investigate the propposal? What, precisely, has EA done wrong here other than offer to buy out T2 (which is not inherently wrong unless you're a T2 fanboi)?

grigjd3
grigjd3

This has got to be the worst attempt at a hostile take over ever. Businesses ussually like these things to be handled quickly and cleanly. EA, for it's part, has completely bungled this and is now only coming across as doing everything poossible to be rid of competition. I really don't see how they could possibly come up with a worse image for all of this.

mrjasler
mrjasler

take a quick look at the xbox 360 scores on metacritic http://www.metacritic.com/games/xbox360/scores/ you will quickly see that the other publishers actually release as much if not more worse games than EA. The proof is there.. Also doing a search for the worst video games of all time and you will see that EA have no games in any of the top 10 or top 50, they are publishers like ubisoft and sega. I just don't get the hating on EA when you see other publishers releasing bad games and getting away with it!

steven141
steven141

It's beginning to seem like this will never end, someone could write a novel on this. Hopefully take two will stay clear of EA

markharris31
markharris31

@hvac0120 I don't see that as true. Innovation is driven by need first, and profit second (and they are related). Until recently there hasn't been a big enough market for alternative fuels/transportation to support the investment. Humanity, like all of nature, takes the easiest course. Water follows the path of least resistance, as do we. It is much easier to extract energy from fossil fuels than from other sources. Now that the worldwide demand for energy is outstripping the supply; the market for alternative, renewable energy is becoming profitable. We don't need government regulation, or mandate, blah blah to see change. We need interest by the consumer. If sales of hybrids were through the roof back when they first came out you would see tons of hybrid options for purchase, and millions of hybrids on the road. If you want an example look at the computer industry. The demand for ever-increasing computing capacity is driving innovation at incredible paces. Computers today are hundreds of times more powerful than computers from 10 years ago. What sustains that kind of progress is high demand and high profit. Big business only does what consumers allow, and no more. Without the demand for their products there would be no big business at all. Businesses aren't the enemy, they are the enablers of our own desires. Big business cannot hold us down (as you imply, I think) unless we allow them to do so. They don't own us, we own them (literally for publicly traded companies). Our nation, our government, our economy, everything is set up to be run and controlled by the will of the people. If our will is strong enough we can change anything about our country, including how it is run, what products are available, what energy sources we use, ad infinitum. People need to realize how much power they have and start using it!

maaly81
maaly81

anyone buy the company but EA please!! EA is so disillusioned with themselves and what game "they" want to make rather than what gamers really want as a whole. Lacklustered horrible games, especially in the sports genre from EA is a shame. Hope the NFL doesnt renew the license to them exclusively. And for this takeover, I understand EA wanting to make money, but the way they are going after Take-Two they just want to sabotage them and get rid of them more than anything it seems

Warlypwnage
Warlypwnage

dont buy games published or made by EA any ore. im not no matter what they make.

Hvac0120
Hvac0120

[quote]markharris31: If the EA deal is best for the shareholders, they have the right to sell, period.[/quote] Sad...but true... That's the world of business...If it weren't for big business we'd all be driving solar/electric hybrids, our houses would all be clear air and run off solar panels, windmills, etc, and our electronics would be 50 X more advanced. Will EA's purchase of T2 effect the world that much? I don't truly believe that it will.

Disturbed_King
Disturbed_King

EA, give it up. No matter how desperate y'all are, you are not going to get your hands on Take-Two and eventually destroying the GTA franchise and ruining Bioshock 2. Take 2 already knows that EA is greedy corporation who likes creating Monopolies all of the time (like Microsoft when they bought out Rare, then completely ruined them). But what if, one day, EA bought out Epic Games and/or Bethesda without warning? That would be when I'll officially stop buying any sort of EA game, try to sue them for big bucks, and go on a rampage.

Hvac0120
Hvac0120

@DeaconJones75 I agree that the only way to make an impact on EA is to stop buying Madden. The problem is that the "jocks" who play this type of game don't necessarily pay attention to the publisher behind the game. They just know that a new Madden will be out the next fall and that they are going to get it. I know a couple people that the only reason they have an Xbox360 is because they want to play Madden. They seriously don't own any other games or have an interest to. It is because of this mass population of uninformed buyers that this plan will never work out and why EA will be able to continue for a long time doing what they are doing. It's especially harder now since EA has locked down the NFL for another 4 years. And if EA takes over T2, then all of the competition for football games will have been knocked off the market. I haven't bought a Madden game since it was on Dreamcast. I don't intend to until I see some major improvements. 08 was a big leap over 07 (at least on 360). I am planning to skip 09, but I was thinking 2010 would be a good year to jump in (keep in mind that the year on the box is always one year ahead of the current year).

markharris31
markharris31

*sigh* This is not an indication that the FTC thinks EA is any kind of monopoly, they just want as much information as possible so they make a wise decision on the impact this acquisition will have on the industry. EA is not even the world's biggest publisher anymore, that goes to Activision, now that their acquisition has been approved. Honestly, a company I used to work for was bought out for $4 billion, and the FTC took 8 months and 4 extra requests for information before they approved the deal. This is a lengthy process no matter what the industry. Additionally, EA is not trying to take anything from Take Two, they're trying to BUY the company. T2 is the shareholders, they're the ones bankrolling the game development, and they're in it to make a profit. If the EA deal is best for the shareholders, they have the right to sell, period.

blackace
blackace

Take Two is talking to other publishers, so hopefully they can get another company to buy they out before EA gets their grubby hands on them.

DeaconJones75
DeaconJones75

Really want to send a message to EA? Don't buy Madden. Seriously, what's the point of giving them money for merely updating a roster? EA's one of those companies that when they tell of about all of their new features, they come in with a spiel like, EA's PR Rep: "...and this year, we're bringing to you....Team Deathmatch! I know, I know, unlike anything anyone else is doing, but that's why we're the biggest company in the world, because we bring you innovationes like Team Deathmatch." Press: "Don't most multiplayer games already have that feature?" EA's PR Rep: "Here's a copy of the new Madden with the cover's signature, kid, now scram! That's right, Team Deathmatch in the 4th sequel of our first person shooter! Yea us!" Remember when it was like a year or two ago when one of their big features for Madden was gang-tackling? Really innovative, especially after T2 had it in their 2k series close to 5 years earlier. Stop paying for rehashed crap. Stop giving EA money. Honestly, if you cut them at their knees with Madden and NCAA, you ruin them. All of their other franchises aren't that good, in all honesty, and are not nearly the cash-cows that Madden is. Spread the word to boycott this year's Madden. They won't listen to your words, but they will listen if their sales figures go in the toilet.

Mafioso14
Mafioso14

Damn .. Ea wants to take over everything .. f*ck that .. and f*ck Ea

krunkrungles
krunkrungles

lol dam boobakerbrown that pretty much steals the words from my mouth... and probably thousands of others. Not only that, but if Take Two doesn't want to be taken over, then they shouldn't be forced to. So if they don't want to, then hopefully EA will just give up then

Hvac0120
Hvac0120

EA is disclosing every bit of information they can about their intentions. Why won't Take-Two open up and say who (if anybody) else they are in talks with? I understand that they are trying to be careful because they do not want to say something that will devalue their company during this sensitive time period, but we gamers want to know what T2 is doing to keep EA out of their doors...

BooBakerBrown
BooBakerBrown

OMG!!!! I actually wrote a post yesterday on this website (The one about EA buying ThreeSF) refering to the FTC investigating EA... this is what I wrote. [Here's the deal people. EA is like the equivalent of those major oil producing countries in the middle east. After, if it is or ever will be possible, EA monopolizes the gaming industry they'll drive up the price for all games because know other publishing company will be selling games. Why? Because EA will own all of them. They, the devs, may have their name on the cover but they'll all just be subsidiaries of the pre-eminent monster known only as Electronic Arts. They should change their company's name to "I'm Gonna Take Over Your Game Company & Your Gonna Like IT... Inc." But... that's looking on the worst side of it. Hopefully, the FTC is monitoring all of EA's acquisitions & will eventually say "Enough IS enough EA... leave the kids alone & stop taking all of thier milk money ya big bully!"] How ironic is that, but it was an inevitible. You can't just go smacking the crap out of everyone you see & take what's theirs without dealing with the ramifications... unless you're the LAPD.

svitas
svitas

For the love o god stop saying that EA made a god game like crysis, becouse they only give money for devolpment and NOTHING els. Simcity the last istalment was horible for me, and mass efect wasn't devolped by EA again only they give money. So stop mixing all in the same sh*t.

dragonsama
dragonsama

EA keep your dirty hands off my GTA!!!!!!!

mrkame16
mrkame16

NO MORE MONOPOLY! NO MORE HOSTILE TAKE OVER! STOP BUYING EA GAMES! SEND THE WORD!!

otanikun
otanikun

Whoops, you're right Exploited, my bad ^^;, I just got too into the moment

xTheExploited
xTheExploited

This is getting really pathetic now... And to otanikun, EA had nothing to do with BioShock, its one of Take-Two's games.

otanikun
otanikun

I'm sick and tired of hearing about this crap, this is not news anymore, I'm not opposed to boycotting EA from selling it's crap games to me at my local game store. Last game I bought from EA was Bioshock and will be the last unless they stop this crap and quit trying to buy out all the game companies on the planet, I mean seriously eventually they'll branch out and take over foreign companies too like in China or Korea, hell even Japanese gaming companies nobody's heard of may fall victim to this Monopoly of a gaming company. NO MORE MONOPOLY! NO MORE HOSTILE TAKE OVER! STOP BUYING EA GAMES!

Skrilla_XS
Skrilla_XS

They may not develop some of the games in their entirety, but they can still have a say in what content goes into a game which is what scares me the most. If EA tries to make GTA full of actual advertisements, like in Need 4 Speed and Burnout, I'm going to be pissed because Rockstar has some of the most funny/creative billboards and commercials in a game. I just hope they don't touch GTA and let the creators work their creative magic w/ their great writing and clever ads, because EA's writing hasn't been good lately (i.e.-Army of Two). Also, R* seems to be making GTA more challenging/realistic whereas, lately EA's games haven't been up to par on the challenging side of gaming, it's as if they want their games to be easy, I beat Crysis on Delta difficulty and only died twice, and one of those times, I happened to be in the water, with no weapon while getting shot at by two boats circling me and a chain gun on the edge of a mountain, and that still took forever to kill me. Army of Two was rediculous (2 RPG's to the face, and you still can't kill me), they ruined the simcity franchise with simcity societies, and while Burnout was fun at first, it became incredibly repetitive while the only challenging event was the stunt run, C&C has completely lost it's balance with GDI being severely overpowering toward Nod and the Aliens, and Live....well, Live hasn't been good in years. I really hope EA sticks to a hands-off policy.

bourne2live
bourne2live

Yeah, and this gonna continue like again... and again.... and again... and... you get the point

Solid_RAG
Solid_RAG

EA is one of the worst Companies in video game history. EA does only sports games, which are crap. and since Take Two did Bioshock and GTA IV and may a huge profit. EA couldnt get Rockstar to sell it and since BioShock the Movie and Bioshock II are Rumored to be in the works. EA says: So the Next best thing hey lets Take over. I'll tell yea one thing EA should take over Activision, Inc that way other Bull Crap of a company can be history. Tell Yea one thing Gamers are gotta end up not buying EA products if they Take over Take-Two and Destory Take-Twos best Games. I think its up to the Community to stop this. Also Microsoft and Sony Should also have a say in this cause this will effect them as well. Global Problem with EA like a Virus trying to Profit on the really good companies that make good games for as gamers. >_>

xXKINGPINXx
xXKINGPINXx

for the love of god I DIDN'T SAY DEVELOPED!!!!

Tiger626516
Tiger626516

@ xXKINGPINXx Get your facts straight. Crysis was developed by Crytek, not EA. When it comes to smaller company's they can't publish on their own. So of course highest bidder wins and in this case EA won bid to publish Crysis. Take-Two hope ya stay independent.

markharris31
markharris31

crunchb3rry, capitalism works every time. In a free market economy YOU have the power, not the companies. If you don't want EA to buy out other developers, don't buy their games, period. No sales = no money for acquisitions. Gamers, by and large, don't mind EA at all, as seen by their massive revenue. Maybe 0.5% of the gaming population, if that much, comments on this website. So even if every single one of you hates EA, there's still 99.5% of people who play games to whom EA can sell. Capitalism works just fine. People have stopped buying trucks and SUVs because of rising gas prices, so guess what, all major manufacturers have cut down on truck and SUV production, to the point of closing entire plants. There's your free market. You control it with your choices, as does everyone else in a free country.

xXKINGPINXx
xXKINGPINXx

@lendrahcir do you even know how to read? i said they got great games not developed idiot and not all EA sport games are sh*t allot of those sport games are great games like madden and fifa it's all good

lendrahcir
lendrahcir

@xXKINGPINXx: You need to get your facts right. EA did not develop Crysis, they published it. EA developed games are usually quite s**t, especially the sports division. EA are great for publishing, since they have all the money so they can advertise like crazy and thus help a game in which they did not develop.