EA: Take-Two offer expires Aug. 18

Megapublisher says its oft-delayed offer for the Grand Theft Auto-maker will now expire three days ahead of prior deadline.

by

Two weeks ago, Electronic Arts announced that its bid for Take-Two Interactive was in compliance with the Federal Trade Commission's requests for information. As a result, the megapublisher said it was further delaying the deadline for its $2 billion bid for its rival, which enjoyed the biggest game launch of all time in April, courtesy of Grand Theft Auto IV. EA promised that it would take no action before August 21, six months after it first announced its buyout plan on February 24.

Now, possibly feeling some pressure from the recent formation of Activision Blizzard, EA is moving up its takeover timeline...slightly. This morning, the Redwood City, California-based publisher said its $25.74-per-share offer will expire at 11:59 p.m. EDT on August 18, 2008. Though lower than its initial $26-per-share offer (courtesy of some stock dilution), the price still currently offers shareholders a slight premium, as Take-Two ended trading today at $24.66 on the NASDAQ.

Though still far from certain, EA's attempts to subsume one of its biggest competitors appears to be picking up steam. The publisher reported that, as of 5:00 p.m. EDT on Friday, July 18, approximately 11,741,339 shares of Take-Two had been tendered in and not withdrawn from the tender offer." According to Marketwatch, that figure represents 15 percent of all outstanding stock in the New York City-based firm--roughly twice the number of shares tendered in June.

As in the past, though, Take-Two executives remain defiant. "In February, Take-Two's board rejected EA's offer as inadequate," said chairman Strauss Zelnick in a statement. "Since then, the record-shattering release of Grand Theft Auto IV, the exciting announcement of a BioShock movie, and our ability to deliver financial results exceeding expectations have further demonstrated that our value-creation potential is greater than EA's offer."

Zelnick also once again dangled the possibility that another company might outbid EA. "We are fully engaged in a formal process to evaluate strategic alternatives that have the potential to deliver greater value than EA's inadequate offer," he said. "As part of this process, we continue to engage in meaningful discussions with multiple parties, a number of whom have been conducting due diligence."

Discussion

210 comments
brendanhunt1
brendanhunt1

rockstar is proud to be a extremely successful british company, i dont want ea controlling them

ps3thabest
ps3thabest

@SkullXero you are right. but i rather someone else buy them except activision,but they should sell to someone before its to late.

SkullXero
SkullXero

Yes T2 has some good games, but they are not making money. They barely make profits year in and year out. It would be in their best interest to sell when the time is right instead of holding out, because if they go out of bizz then that can def split up a good development team. It does not matter if EA or whoever buys them out, they just need funding. And it has shown in the past that EA just buys companies and leaves them to develop the same way. They just slap an EA logo on it. Now all you T2 fans. Would you rather have the company go down in the big market just to spite EA by not selling to them? Lets be realistic and look at the facts and numbers.

mallams888
mallams888

I really wish that EA games would just quit trying this. I think that take-two is doing great without EA. In my honest opinion Take two and rockstar have a great game roster, and I think that EA has a couple of ok games as well. I just think that these two companies are very different and that it would be terrible to see take two getting owned like this.

ps3thabest
ps3thabest

@SkullXero i dont just hate ea i hated activision over spiderman 3 i still do i hope the new 1 will be good but the only games that i have interest in from ea is dead space and fight night

Blood_Diamond
Blood_Diamond

EA do publish some games... but it is over shadowed by the rushed money making games

SkullXero
SkullXero

@ps3thabest And like I said. EA makes plenty of good games. I just think you are on the "hate EA" band wagon. They publish many well recieved and well rated titles.

Jose_yero
Jose_yero

YAY NOW they'll explot the Gta name n put it on pc YAY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

ps3thabest
ps3thabest

i neva said ea doesnt have alot of games i said they should make good games most of dem suck and are rushed i kno ea has alot of money they dont need take two they just wanna buy it 2 buy it

SkullXero
SkullXero

Ea makes plenty of good games. Or do I need to make the list again to shut you guys up. Saying 2k wont win is pretty silly as well. If EA wanted to they could raise the offer and then the execs at T2 would take it. They are not worried about an EA buy out, they just want as much money as they can get whoever provides the cash. Does not matter is its EA or Blizzard. Its just that EA has the most money out of the suitors.

ps3thabest
ps3thabest

@SkullXero whats the point of writing in sentences its just online i dont care about the skate reviews from other people u should tell me your review i just didnt like it ea should take some time 2 making great games they can learn alot from take two in making good games. o well we all got our taste

assasain13
assasain13

Why is everyone talking endlessly on about skating games instead of about how EA should just leave take-two alone? Face it, EA, you're never going to win. Take two makes better games than you, and they don't want to loose that advantage. EA should stop extending their deal and focus on making some decent games for once. Excluding the Burnout series, EA sucks.

SkullXero
SkullXero

Well skaters everywhere and professional editors think its a great game and very innovative. Nuff said. And could you please start writing better sentences. With the misspelled words and lack of punctuation. It can be hard to read what you write. Btw madden received High marks on all major gaming review sites and forums last year. So again you fail. But hey you are entitled to an opinion

ps3thabest
ps3thabest

@SkullXero well dats on u like i said ive been playing games since super nitendo so i kno wat kind of games i like i didnt like skate boring as hell camera sucks and irather play tony hawk anyday but like i said i like action adventure games u stay playing skate with the crappy controls and the ea logo on it it was boring after a while so i guess u are goin say madden was good 2 from last year right? u got your taste i have mine

SkullXero
SkullXero

Dude if you do not like skating games that much anyways that shows how your opinion is a tad biased. Ill go with the actual skaters, extreme sports fans, and the reviewer opinions on the quality of Skate. I loved it. Btw the camera is supposed to mimic someone following you with a camera doing a film session. Have fun with your easy no skill Tony Hawk. I like skate because I actually feel accomplished when I pull off sick lines or nice tricks over a 5 or 6 set. Just like in real life, it makes you feel good doing it. For me tony hawk is the same mashing stuff game after game, and has not changed much since THUG. The last thing good about the THPS series is that you were able to leave your board. Now it remains the same. But to each his own

ps3thabest
ps3thabest

@dmcphillie u made a lot of sense but i rather somebodi else buy them who makes good games not like that skate crap which i agree with snake3rules was boring 2 play thats why i buy most action adventure games take two should put out more games like max payne 3 or somethin and u were right they need more den gta 4 unless they make 1 every year

ps3thabest
ps3thabest

@SkullXero skate was horriable thats my opinion i like tony hawk games better and i really dont care for skating games tho and anyway ea sucks they try 2 buy everything and take over and u are a idiot i like konami take two ubisoft and sony sometimes activision GOOD companies skate sucked 2 me camera 2 damn close cant even move it ive been playing games since super nintendo so shut up

Yojimbo25
Yojimbo25

Oh Come ONI Why doesn't EA just give up? It's apparent that Take 2 has no interest. If they did, they would have responded... Even though Take 2 is doing terribly right now, its not over. They can come back.

SkullXero
SkullXero

What!? Skate was no fun to play? are you kidding me. And check you slaes numbers because it def did not sell horribly.

snake3rules
snake3rules

skull that doesnt change the fact it was absolutely no fun to play and sold horribly. and dmc, take two has never traded at 26, it was far lower than that when ea made the bid-- and while its gone up, 26 is still more than its trading for.

shenron43
shenron43

very interesting, very interesting indeed.

dmcphillie
dmcphillie

@ps3thabest Yeah Dont sell out Take-two Just let yourselfs go out of business instead, draggin down all your IP's with you, I'm sorry but one sell out game(gta) doesn't bring a company back. In case you hadn't noticed, their share price has went DOWN since gta was published, I'd rather see EA buy it than it going down in flames.

SkullXero
SkullXero

@ps3thabest First off, learn how to write complete and proper sentences. Secondly, How was Skate was horrible. It is touted as the best skating sim ever. The reason being it is actually a realistic sim of skate boarding. I know casual gamers as well as real life skaters (myself included( who love it. Show me ANY review online that says skate was a bad game. Show me ANY major review that even says tony hawk is better, which we know is not. Idiot. This again proves my point. most of you who post do not know anything about gaming or the economics behind it. People just want to be band wagon EA haters. To bash a revolutionary game like skate, and for people to still bash madden after all the great reviews last year shows us something. Im glad we have professionals rating and reviewing our games instead of some of you people.

ps3thabest
ps3thabest

ea u making yourself look bad dont think because bad company{red necks call of duty}was good u out of the water i hate ea and skate was horrable and the controls back 2 this dont sell out take two

pcmacro
pcmacro

Fifa might be doing well but they are far from closing in. Konami admitted messing up PE2008 due to the fact that the game was supposbly made for ps2 and that they had many other issues. I am positive the next release will be amazing.

gnrldd65
gnrldd65

@ Valdarez, I;m not sure about Madden since I've never played it but it's undeniable that the FIFA franchise has improved dramatically and is closing in on Pro Evolution. Nothing to do with the current news but just wanted to comment on how FIFA is owning XD

valdarez
valdarez

If this deal goes through, it will be the end of sports gaming as we know it. We'll be stuck with year after year of crappy releases from EA. Just look at what EA is trying to do with Madden this year. They wouldn't have tried to do anything if 2K didn't put out APF2K8 last year and remind everyone how bad of a football simulation Madden truly is... This is the most hostile take over in gaming history. EA does not care about the gamers, or even the quality of their own games. If you must buy an EA game, then but it used of eBay. You'll prevent a monopolistic company from ruining the gaming industry and save yourself a good $30 in the process!

Ket87
Ket87

Another company might outbid them? By process of elimination doesn't that only leave Activision-Blizzard the only one capable of outbiding EA? Personally I'd rather have EA take over for one I couldn't see the activision logo on GTA for some reason but really I don't know much about how Activision would handle development of another studio's properties like that, at least EA now is hands off and lets the studios they snatch up do whatever they like.

SkullXero
SkullXero

Also basically it seems anyone who brings up the actual facts and financial news about the situation, people get rated poorly. Seems to be only thumbs up for the general EA sucks comments that hold no water. Quit buying their games kids, and maybe the game sites should start rating their games poorly. Too bad most of them still rate over 80% on gamerankings.

SkullXero
SkullXero

EA has no morals?. What big company does. The same could be said about the two companies who are fighting so hard to win over hardcore gamers. *cough* Microsoft* *cough* Sony* And fan boys? I call it as I see it. I call myself seeing whiners in a forum who still buy EA games and crap talk a publisher who still puts out well rated games every quarter.

Egg99
Egg99

EA fanboys really need to go read some backstory on EA and educate themselves a bit. The company as a whole has no morals whatsoever, and that is the exact kind of company you DON'T want in the gaming industry. They're petrified of not being the top dog anymore, you can tell by the way they continue this pathetic attempt at a hostile takeover. I say thank God and good riddance.

glennwinton
glennwinton

hopefully this bull wont come up again, i'm tired of hearing about ea trying to gain take two, i used to be worried but now it's obvious take two isnt interested

Erebus
Erebus

Don't forget about Activision-Blizzard. They're the biggest gaming conglomerate now. This means, yes, EA is the underdog. I think in 5 years time, people will realize that EA and AB (ActBliz) at each-other's throats will be a boon to gamers. In a world of competition, the consumer wins. In a world of Monopoly, the thimble wins.... even if it sucks.

mrkame16
mrkame16

ive been against this whole take over thing from the start, now i just dont care... i just want to play the games i dont care who publishes them anymore, why should i? its not my fight. If the takeover and GTA5 sucks then oh well. i just wont buy it, there will be plenty of other games available to spend my 60$ on...long live game rentals!!!

SkullXero
SkullXero

Yeah I have to agree rare was the best in the Nintendo 64 days and a couple of the ps2 games. they are forgotten trash now. PDZ for 360 I enjoyed though.

Laurence114
Laurence114

'Nakor I really, really hope EA doesn't manage to buy them. I wish Microsoft would buy them. Microsoft has proven several times now that they can buy a good game company and not mess them up at all. EA is of course a different story.' Rare sucks now ever since microsoft bought them

Ek-Andy
Ek-Andy

"They claim to have destructible environments powered by the physics engine but it just swaps models for slightly more damaged models." No, really? *End Sarcasm* Thats what every single game with destructable enviroments has. There is NO other way of creating destructable enviroments that I am aware of, or is commonly used. That's hardly a solid complaint... And incidently to say, "powered by the physics engine", makes absolutely no sense. What you should have said was, "designed through use of a physics engine". Physics engines are used when designing games not when running them.

prdroog
prdroog

Honestly, I really don't care which company buys out who and so on and so forth. The only way thats gonna put me sour is if as a result of buy outs or mergers, the quality of games plummets to abysmal levels. "It's all about the games, lets keep it real ruthless conglomerates."

markharris31
markharris31

@SkullXero Well we have to stick together to keep the masses informed, eh? @pongley The CEO has a responsibility to the shareholders, so technically the board should have sold to EA at the 50% premium offered at the time of the original offer. The problem now is that even with titles like Bioshock and GTA IV on the streets the stock price for T2 has fallen back under $25 per share, and if EA takes their deal off the table it will plummet back to the $15-$16 per share that the company is actually worth. The only viable reasons for a CEO and board of directors to decline such a lucrative offer are in the case of extreme solvency (i.e. proven profits and growth over several quarters) or there is a better offer on the table. We know for a fact that the former isn't true, and there is no real evidence of the latter.

IKKF
IKKF

Now I'm kind of just laughing at EA for being so relentless.

SkullXero
SkullXero

But look at T2. As mark said. They turn a profit once in 12 quarters. That is horrible and they need some financial backing to stay afloat despite the money they made from GTA. Many of you comment here and dont make realistic points. EA has made many great games and still is pumping out good stuff. Must I mention Crysis? OR was that trash too because it has an EA on it. If someone, does not matter who, buys over T2 then soon you wont have anything from them, or they will have to sell themselves without a profit. Which EA is trying to give the shareholders. You cannot keep up the money loss that they do, and going 1/12 quarters turning a profit def is not made up easily even with GTA 4 success. Secondly you def cannot bash bad company. I love it and the people who play it love it, but lemme guess are you a CoD guy. If so then that says it all right there. Look at the reviews it recieved here and then check game rankings and Meta Critic. I guess MANY top gaming sites are wrong and EA just sucks huh =/ Reviews Publication Score 1UP.com B Edge 7 out of 10 Eurogamer 8/10 Game Informer 9.25/10 GamePro 90 GameSpot 8.5/10 IGN 8.6/10 TeamXbox 9.1/10 X-Play 4/5

SkullXero
SkullXero

Thanx Mark Harris. You again show you aare an informed gamer unlike the many who post here. Everyone is on the EA hate bandwagon. FFS many of you have EA titles in your homes probably and to say they run companies into the ground. Are you kidding me. And to say they do not make quality games. What was Madden 08 ratio last year at gamerankings and meta critic? I rest my damn case. And battlefield bad company has been a hit for demo and full version this summer on both platforms it was released. So dont gimme that bull about EA not making good titles. As i Said before, the only sports game 2k reigned supreme in last year was NBA 2k, and in every other genre they were out rated on many many gaming sites and have lower overall GR and MC ratios. As for GTA, why the hell do people say EA would fudge it up. They see how much money they can make in a few years off 5. If their name is on it or not people will buy it. All EA is doing is putting their seal on it, they dont buy people out and then change whole developing teams and direction if the game is already majorly successful.

SkullXero
SkullXero

Actually T2 wants as much money as it can get. They are not trying to avoid a buyout, they want to make as much profit from it as they can. the execs never said they didnt want it, they felt that the 2 billion was not enough cash. read the quotes up top. Jeez you people.

Merl57
Merl57

this saga needs to end NOW!!!!!

vip3r666
vip3r666

for christ's sake, give up already EA, cant you see T2 doesnt want to be taken over by you?

skylar561169
skylar561169

anybody else wondering when Gamespot is going to release something interesting. Its been days since anything "good" has been released. I mean come on you got so much personel and you can't release updates??? I'm a little bit disappointed...