Got a noobie question about the EA and Rockstar story

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XTotal_Package3

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#1 XTotal_Package3
Member since 2008 • 25 Posts

So since Rockstar is declining EA's $2billion offer. What would it mean if EA buys all the stock to R*?

What kind of effect would that have and why should we be worrried?

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kieran88

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#2 kieran88
Member since 2004 • 2273 Posts
wont happen, stop loosing sleep.
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strayzilla

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#3 strayzilla
Member since 2004 • 560 Posts
Well for one it isn't Rockstar that is declining the offer, its Take2. Who has a temporary contract with Rockstar until Feb 2009. So even if they do a hostile takeover, Rockstar will walk next year.
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XaosII

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#4 XaosII
Member since 2003 • 16705 Posts

A stock means part of the company. If EA buys enough stock in Take2 (the publishers of Rockstar games), they effectively own the majority of the company and anything EA says is what will happen. If EA says "hey lets merge!" then thats what will happen.

However, given the size of a company like Take2, even if they are dwarfed by EA, its unlikely to happen. It would cost EA billions and billions of dollars.