EA walks away from Take-Two

Publisher says it has terminated discussions to acquire Grand Theft Auto publisher and won't be making another offer.

by

Nearly seven months ago, Electronic Arts went public with its intentions to acquire Take-Two Interactive, touching off a protracted back-and-forth saga between the two companies. Take-Two steadfastly insisted it was worth more than the initial $2 billion offer from EA, and EA resolutely refused to sweeten the pot. After months with little movement on the deal, EA agreed to enter formal discussions with Take-Two management in August.

Those discussions were ultimately fruitless, as Electronic Arts today announced that after "careful consideration," it has terminated those discussions and will not be making another offer to acquire Take-Two.

Take-Two issued its own response to the news, with chairman of the board Strauss Zelnick saying his team will continue working to increase value for the company's stockholders.

"This has been our goal since EA launched its conditional and unsolicited bid six months ago; a bid which was repeatedly rejected by our stockholders," Zelnick said. "As part of that commitment, we remain actively engaged in discussions with other parties in the context of our formal process to consider strategic alternatives."

Take-Two has referred a number of times to "other parties" that might be interested in merging or acquiring the publisher, but has never specified who those parties are. Industry analysts had speculated that both Ubisoft and Activision were potential suitors for Take-Two.

Take-Two shares closed the trading day Friday at $21.89. The Friday before Electronic Arts made its original offer for the company, Take-Two stock traded at $17.36. EA has tendered an offer of $25.74 for each share of the company.

Electronic Arts shares ended the trading week at $44.99, down from the $49.74 it closed at before making the initial offer in February.

Discussion

322 comments
sharpshooter188
sharpshooter188

EA is straight garbage. I am reluctant as hell to buy anything from them and im also aware of their whole online deal of taking away games people pay for after a year. EA is strictly about money. Not games. Im not fond of GTA but im glad take two, took a piss on EAs offer. Take Two pushes the bounds of censorship and thats what i love about them.

tawagivercetti
tawagivercetti

Go away EA, you can't buy integrity. Buy or build?... BUILD you imbecile's at EA.

Nosnitsttam
Nosnitsttam

funny i was so against EA's bid at first. Looking back, it's still bad that EA tried to buy out Take-two the way they did. but EA looks better now than Activision, who dropped several great looking properties in favor of cheap cash-ins like ice age.

TelekinesisBaby
TelekinesisBaby

I could care less if they were bought out, GTA can die and the only real good games from it were Duke Nukem

MonkeManFoSho
MonkeManFoSho

i say just make sure there will be a steady flow of triple A titles in the future, like gtaIV

darkride66
darkride66

magusat999 said "but the bad news is that Take Two's shareholders, who only care about making more and more profit every quarter - at any cost (the nature of any shareholder) are probably ticked off and will retailiate against the company." Damn straight, they should retaliate. Take Two has been spending like drunken sailors for years and haven't slowed down. How many times do they have to take themselves to the brink of bankruptcy? And the last time they spoke up and turfed the board they were rewarded with a new board that quickly gave themselves all raises, huge bonuses to the company that hired them for the job and continued to spend. Then they spurned a more than generous offer from a company that could actually save them from themselves. I imagine if EA had succeeded that board would have quickly found their meal tickets revoked. Better to continue to drive the company into the ground and get rich off it while it lasts. "What ever happened to just making great games and gaining capital by simply doing that?" Indeed. Did you ever stop to wonder how Take Two can be behind so many hit games and still be so far in debt, still be a step away from bankruptcy, all the time? Open your eyes.

darkride66
darkride66

rojo2500190 said "1. EA does nothing except make sports games....which they should stick to cause they cant make any other type if their lives depended on it." They're primarily a publisher, for one thing. Secondly - Um Spore, Crisis, C&C, Battlefield...just to name a few recent, excellent titles that EA was behind. "2. sure take-two is a small company..but they are one of the top dogs in the business." There's nothing small about take-two. In fact, Take-Two might as well be called Take-Over. They've gobbled up 7 independent studios within the last couple of years, and they've certainly had their share of duds. Some of you guys should really take a second to get informed. I love how Take Two is being somehow portrayed as some kind of underdog in this whole mess. Lunacy.

rojo2500190
rojo2500190

thank god...for small miracles. 1. EA does nothing except make sports games....which they should stick to cause they cant make any other type if their lives depended on it. 2. sure take-two is a small company..but they are one of the top dogs in the business. sure they may no flood the market with crap...but when they do publish a game you can be damn sure it's one worth spending money on...

buckybuckster
buckybuckster

On the one hand, this strikes a blow against the monopolization within the gaming industry which is never a bad thing. On the other hand, if I were an owner of TT's stock, I'd be royally peeved right now.

magusat999
magusat999

It's good news on one hand - but the bad news is that Take Two's shareholders, who only care about making more and more profit every quarter - at any cost (the nature of any shareholder) are probably ticked off and will retailiate against the company. That's the number one reason companies get swallowed up by larger organizations - greedy shareholders who are looking for a quick buck. They could care less what effect it has on the industry as a whole; they just want to get paid more and more no matter what the cost. So keep watching as news comes out about the aftermath of this decision (stock prices going down, board reshuffles, etc.). What ever happened to just making great games and gaining capital by simply doing that?

RLJSlick
RLJSlick

Awesome news, now maybe EA will start worrying more about their awful games.

sandyqbg
sandyqbg

That's good news. It doesn't bode well if all the smaller companies get acquires by the big ones. We need companies like Take Two to show that they can stand their own and it's not the brand name but the game that matters

brian_13un
brian_13un

Electronics arts is well suited for Take-Two ad not Ubisoft and Activision

Zloth2
Zloth2

Whoa VolcanicDemon! You need to check your history if you think EA never releases good games. Back in the 8-bit days, seeing the Electronic Arts logo pretty much meant "buy on sight." Archon and M.U.L.E. would be a couple of examples.

tawagivercetti
tawagivercetti

[This message was deleted at the request of the original poster]

DrKill09
DrKill09

Take 2 better never merge with Activision or especially Ubisoft. That would doom them just as bad as merging with EA, imo.

darkride66
darkride66

Personally, I've never had a problem with lag on either XBL or the PSN. PC, now that's another storey altogether.

RiceCake
RiceCake

At Autolycus: So, your saying that its MS's servers that suck... Well thats even worse, cuz I know they wont do anything to help the lagg! Thats why almost every game has been lagging... I thought it was the publishers fault :(

RiceCake
RiceCake

At Autolycus: So, your saying that its MS's servers that suck... Well thats even worse, cuz I know they wont do anything to help the lagg! Thats why almost every game has been lagging... I thought it was the publishers fault :(

Autolycus
Autolycus

" Alucard_Prime Posted Sep 15, 2008 3:42 pm PT EA please take a few peanuts off the top of that failed 2 billion$ offer and improve server performance for your current(keyword current!) games such as BF:BC(sunday lag anyone?)." ---- Dont have to worry about that on XBOX live because MS hosts all the servers and controls all the standars for the online service. best of luck though.

otanikun
otanikun

It's about time they gave up, I was beginning to think TT wouldn't be TT anymore had the hostile takeover actually fallen through. Love live TT and Rockstar!

IXIWhistIXI
IXIWhistIXI

Lately all of the gaming companies have been trying to eat all the other ones and turn them into a giant(er) corporation that releases nothing but crap games made specifically on what charts say generates the most profits. Ubisoft is another big one, but they generally release slightly better games than EA...generally...not always.

Henninger
Henninger

Thank u Take-Two u did the rite thing!

Da1ShrpSh0trGrl
Da1ShrpSh0trGrl

About time they left them alone! What? They never heard about "No means, NO"?..

andrew_ribbons
andrew_ribbons

"blackace Good, now Microsoft can merge with Take-Two and grab GTA IV and 2K Sports titles exclusively for the 360. lol!! At least Take-Two wouldn't have to worry about funds, that for sure. Does the sad M$ fanboy want some attention? Anyways, I think Take-Two and Capcom should team up" Hey, at least MS Game Studios have decent quality control, unlike EA! Lol.

andrew_ribbons
andrew_ribbons

"blackace Good, now Microsoft can merge with Take-Two and grab GTA IV and 2K Sports titles exclusively for the 360. lol!! At least Take-Two wouldn't have to worry about funds, that for sure. Does the sad M$ fanboy want some attention? Anyways, I think Take-Two and Capcom should team up" Hey, at least MS Game Studios have decent quality control, unlike EA! Lol.

adamh1981
adamh1981

EA would have definately ruined GTA.....but it seems that Rockstar seem to be doing a good job of that themselves. GTA4 was about OK but it was nothing amazing. All 5 games before it were more fun and rewarding.

LindBergh2007
LindBergh2007

Next up: A deal from Sega Corporation to obtian struggling publisher for overseas development. EA is really having serious problems. This bid is more then likely to shoot EA in the back and put them in red. Except them to go bankrupt next year.

Alucard_Prime
Alucard_Prime

EA please take a few peanuts off the top of that failed 2 billion$ offer and improve server performance for your current(keyword current!) games such as BF:BC(sunday lag anyone?).

seeddrmmr
seeddrmmr

oh supa badman(ha), the bank is about to control it, take will be begging for EA b/c EA > BANKRUPT

blackace
blackace

Does the sad M$ fanboy want some attention? Anyways, I think Take-Two and Capcom should team up ************************************* Dude, sad about what? I own all 3 next-gen game consoles. I don't have a thing to be sad about. LOL!!

supa_badman
supa_badman

thats one develper you wont control EA.

NikBZero
NikBZero

Good that EA lost this another blow to that crappy company

CorruptGamerGX
CorruptGamerGX

blackace Good, now Microsoft can merge with Take-Two and grab GTA IV and 2K Sports titles exclusively for the 360. lol!! At least Take-Two wouldn't have to worry about funds, that for sure. Does the sad M$ fanboy want some attention? Anyways, I think Take-Two and Capcom should team up

greedom
greedom

Smart on Take-Two's part.

Timstuff
Timstuff

In your dreams, blackace. Take Two rejected EA because they don't want to be tied down or absorbed. MS games studios is faling apart, so there's no way they're going to just go out and buy a the third biggest publisher in North America.

darkride66
darkride66

Nerd_Alert_78 said "Canadian Stock Broker? Oh, it all makes sence now...do you even need your series 7 for that?" It's different up here. To be licensed to trade you need your Canadian Securities Course and Conduct and Practices course. These are the equivalent to your Series 7. Then you're licensed. It's actually good enough to trade in the US as well, as I had been US liscensed for a number of years in the states that allowed it. There aren't any restrictions on which markets I can trade on, just which countries residents I could trade for. All the other professional designations are just me adding to my education and expertise to further assist my clients.

blackace
blackace

Good, now Microsoft can merge with Take-Two and grab GTA IV and 2K Sports titles exclusively for the 360. lol!! At least Take-Two wouldn't have to worry about funds, that for sure.

darkride66
darkride66

@ Nerd_Alert_78. Also, as a financial planner and accountant, shouldn't you be helping people with their mortgages and mutual fund purchases? Usually the Financial Analysts are support staff for IA's like myself.

Nerd_Alert_78
Nerd_Alert_78

@darkride66 Canadian Stock Broker? Oh, it all makes sence now...do you even need your series 7 for that?

darkride66
darkride66

@ Nerd_Alert_78. You'd think then that your reading comprehension would be a little better, because I clearly did not state that anyone had a Buy on TTWO (I simply mentioned targets) nor did I misquote EA's offer as you claimed. I also never once used the phrase "price target valuation". Seriously, Mr. Financial Analyst with Morgan Stanely, I'm not saying you're wrong, everything you pointed out can be easily verified by anyone familiar with the use of "Google" What I took issue with was you misquoting pretty much everything I had said. If you carefully exam my previous posts you will see that I was 100% bang on. Personally, I'm a Canadian Stock Broker, CFP, FMA (Financial Management Advisor designation), FCSI (Fellow of the Canadian Securities Institute) and have been a licensed rep for 8 years (6 years as a licensed Options trader and counting) for 2 of Canada's largest brokerage houses and financial institutions (who I will not name as it's against company policy on internet postings). Prior to that, I was a karaoke host. :P

Nerd_Alert_78
Nerd_Alert_78

[This message was deleted at the request of the original poster]