EA delays Take-Two deadline to July 18

Megapublisher formally re-extends its offer for the Grand Theft Auto maker, finds its advances quickly and publicly re-rejected by management.

Electronic Arts has extended its offer for Grand Theft Auto and BioShock publisher Take-Two Interactive for a fifth time. EA made its first approach to Take-Two back in February, then extended its deadline in late March, mid-April, and mid-May. Besides the delays, the company also announced its intention to postpone its bid in early June.

Although Take-Two stock is currently trading at $26.35, slightly above the $25.74 per share that EA is offering, EA maintains that its price is a fair offer. The senior vice president of corporate development, Owen Mahoney, said, "We congratulate Rockstar on the successful launch of Grand Theft Auto IV but believe our offer reflects a full and fair price based on the long-term value of Take-Two's entire operation."

EA added that the extension would allow the Federal Trade Commission investigation into the proposed deal to continue.

Take-Two's response was swift, and once again, negative. Take-Two chairman Strauss Zelnick said that he believed the offer still "significantly undervalues" the company, and called the move an "unsolicited and highly conditional offer."

He said, "Our Board of Directors remains in unanimous agreement that the proposal is contrary to the best interests of Take-Two stockholders, and the Board continues to recommend that stockholders not tender their shares to EA. The Board remains focused on the strategic process that began formally on April 30 to consider all alternatives to maximize value. We believe that these alternatives, which may include a business combination or remaining independent, will deliver greater value to stockholders than the current EA offer."

Currently, some 6,139,824 of Take-Two's outstanding shares, about 7.9 percent of the total, had tendered into EA's offer as of the end of yesterday. Recently, it has been suggested that Ubisoft might be entering the frame with the intent to form an alliance with Take-Two. Both companies are partially owned by EA.

323 Comments

  • D2T8L

    Posted Jul 9, 2008 1:40 pm PT

    Agreed. EA eats up games that where once good than turn them into crap And that crap still cost 60 dollars.

  • Ratchet12345

    Posted Jun 24, 2008 1:27 am PT

    Yeah, EA is like the tornado of video games - unless you run away, they will destroy anything and everything in it's path. Keep running, Rockstar and Take Two, run from those evil bastards!

  • Ratchet12345

    Posted Jun 24, 2008 1:26 am PT

    Yeah, EA is like the tornado of video games - unless you run away, they will destroy anything and everything in it's path. Keep running, Rockstar and Take Two, run from those evil bastards!

  • N1Kahnefan9

    Posted Jun 23, 2008 1:07 pm PT

    If EA gets Take-Two, GTA 5 will probably be an over-priced, unoriginal, bug-loaded crapfest.

    Count on it.

  • djubacsik

    Posted Jun 23, 2008 5:50 am PT

    Well i think that the biggest company is the UBISOFT ...they build up the best quality for their games...they have the smoothest gameplay ever .... just try out the Prince of Persia trilogy or the Assassins Creed ... they rock !!!

  • sensei_hEnRY

    Posted Jun 23, 2008 1:53 am PT

    i can understand that EA wants to collect the whole developers under one publisher. It will compress a lot of money for developing a game. Each developer can switch technology too to make a really great game (imagine GTA 5 with unreal engine and deep story of Assasin's Creed). the problem is i don't sure EA will earn anything except money. For example some of great EA Games title doesn't made by EA itself (Battlefield series, Black, Burnout, Crysis, and upcoming Mirror's Edge and Mass Effect 2) but by DICE, Criterion, Crytek, and Bioware. if EA wants to do more, i suggest EA to make its own console. fight with Microsoft Games Studios and Sony Computer Entertainment. With lots of great developer owned by EA, I think it will be great.

  • SgtMunky

    Posted Jun 22, 2008 11:17 am PT

    EA is a monster that gobbles up everything in its path, and in its wake it leaves crappy games. GO TAKE-TWO!!!

  • SonOfChewbacca

    Posted Jun 22, 2008 10:04 am PT

    No, EA, just......no.

  • PhireStorm007

    Posted Jun 20, 2008 4:46 pm PT

    EA is digging its own grave with a weak game library and being the industry's "whore". I'd like to see Take-Two and Ubi partner up, I think they can learn from each other

  • MarcjinJaume

    Posted Jun 20, 2008 7:01 am PT

    It's time for the user made entertainment: that is movies, videogames, etc. We need easy usable software to be able to get the best result with little work. I'm already working with a free 2D game making program called game maker but I guess there are equivalents for 3D games

  • UnrealPro

    Posted Jun 19, 2008 1:26 pm PT

    EA is nothing but a monopoly and needs to be shut down, end of story.

  • cooldude03

    Posted Jun 19, 2008 10:06 am PT

    I wish EA would delay some of their games the way they delay this buyout. Maybe they'd put out more quality. With Ubisoft in the mix this is getting very interesting. I'm hoping for and Take-Two/Ubisoft partnership.

  • darkride66

    Posted Jun 19, 2008 5:49 am PT

    I don't understand how people equate EA's latest move with desperation. If they threw more and more money at Take Two (which would be crazy considering how overvalued their bid is now) than that would be desperate. Simply waiting for Take Two to come to their senses and giving them more time to consider, and to let the FTC do their work isn't "desperate", it makes perfect sense. And again, this isn't about GTA. That's one game every 3 years or so. Madden is a much bigger money maker because they can put one out every single year. This is about 2K sports, plain and simple.

  • ShadowOfKratos

    Posted Jun 19, 2008 3:24 am PT

    personally, I'm crossing my fingers that EA NEVER manages to take anything else, be that title or company. and I know that's a BIG wish, knowing their pockets, but if EA gets to have no competition, they're gonna get even more laid back and even have the power to overprice repetitive games that only give off a nice presentation... that's when gaming days are truly gonna come to a close (really fast), sadly.

    now some people might not think that stating opinions counts to anything, but it goes a long way to informing, changing how many people think and hence how people act, and that ultimatelly counts for something when developers take a peek at a site like this and go like; "damn, the MAJORITY is on to us... better do this right then, or we won't profit from the MAJORITY..."

    all I'm saying is that we should let them know, we know, they're f***ing with us...

  • ShadowOfKratos

    Posted Jun 19, 2008 3:00 am PT

    wtf is wrong with EA? they've got so much potential, yet here they are embarrasing themselves trying to grab GTA over and over again... just look at Skate, Bad Company, Mirror's Edge, amongst so many other titles.

    I mean, EA can easily make as good a game as GTA --"IF"-- they wanted to. but they're just a bunch of lasy bastards to actually make a game that lasts longer than 1 hour without repeating the same damn things over and over untill you complete their game!!

  • Thorpe89 Site moderator

    Posted Jun 19, 2008 2:52 am PT

    EA are really getting desperate.

  • LoganFerguson

    Posted Jun 19, 2008 12:54 am PT

    Everyone always talks about Rockstar, and granted, they make the most popular video game in the world, Grand Theft Auto. But how about other Take-Two subsidiaries, like 2k Sports, Bethesda, or Firaxis? 2k Sports is the ONLY competitor to EA Sports, and is the only reason we get barely (and I stress that) decent sports titles. Without 2k Sports, who knows how bad Madden and NBA Live will get! With Bethesda, we've got the creators of one of the greatest RPGs ever (none have achieved the level of freeform Elder Scrolls has. THAT's what an RPG should be). But if you look at the #2 RPG (for the Xbox), Fable, they're made by Lionheart, a EA cronie and led by a certifiable loon. See how Fable failed to live up to promises, and in the end was more about gloss and visuals than gameplay and story. And then there's Firaxis, who I believe was once owned by EA, and Sid Meier has had plenty of run-ins with Electronic Arts, and is NOT a fan of their company. You think he wants to once again work under the yoke of EA? Doubtful. Are we then to be subjected to another court battle over the ownership rights to the greatest video game franchise ever, Civilization?

  • brain20035

    Posted Jun 19, 2008 12:24 am PT

    I'm not a fan of EA, in fact I hate them so much!
    But when EA acquired Bioware, after a short time they announced that Mass Effect is coming to the PC, a game which wasn't supposed to come to PC!
    I don't know if it was related to EA or no, but if it was, then I guess acquiring Take 2 by EA will result in GTA IV on the PC!
    My fingers are crossed....

  • taurian0205

    Posted Jun 18, 2008 11:47 pm PT

    ea is pizsing me off... but if battlefield bad company is any over 9.0 then its ok for them to get take-two imo

  • rome_tx

    Posted Jun 18, 2008 11:34 pm PT

    Like I said with the last story, you might as well copy and paste this story next month.

  • thenewau25

    Posted Jun 18, 2008 10:46 pm PT

    ea damn you damn it get out of here leave it alone, man i hate ea!

  • cheerios3d

    Posted Jun 18, 2008 10:23 pm PT

    EA just quit Take-Two doesn't want u, damn u guys r desperate 4 that GTA title. U all should take all that money n invest in some new games other than sequels.

  • lucas0313

    Posted Jun 18, 2008 10:01 pm PT

    the best! so cool!!

  • darkride66

    Posted Jun 18, 2008 8:32 pm PT

    GodzillaX8 said "EA is a shambling corporate entity that only cares about the bottom line profit rather than the quality of the games, and the value to the customer."
    And yet they consistently release high quality games that are snatched up by consumers and well received by reviewers. Interesting behavior for a company more concerned about quality than profit.
    You have to realize, EA isn't soulless corporate entity, it's a collection of talented game developers who have pride in the product they put out. I dare you to walk up to an EA programmer or artist and tell them their years of hard work are crap and they're just corporate lackeys. It must easier to just sit back and take shots at them from the anonymity the internet allows you. Have a little respect for the people who dedicate their professional lives to entertaining you.

  • RockstarFan17

    Posted Jun 18, 2008 7:59 pm PT

    EA sucks. A 2K Ubisoft merger would rock.

  • Avals

    Posted Jun 18, 2008 7:55 pm PT

    EA is trya gain more rather than making good games..they have their visions kinda bias..using economies of scale..it try to gain most by making worst games(Worst games means fewer works), then make a lot of advertisements on promotion on how "cool" the game are and attract idiots to buy..then they could gain, how simple, without using any of their own hard works or stuffs. Just their fame and advertisements.

  • Shomb22

    Posted Jun 18, 2008 6:17 pm PT

    EA put them down! Bow down T2

  • LeviHarris

    Posted Jun 18, 2008 5:42 pm PT

    @ GodzillaX8

    Well spoken, my friend. Took the words from my keyboard.

  • barJerubsheol

    Posted Jun 18, 2008 5:18 pm PT

    markharis31,

    I've never said Ea wasn't good at business. Quite the contrary, they know what they're doing. I am simply speaking from the point of view of a customer who likes to by quality products cheaply as possible. I think if Ea started selling bi-annual maddens with roster updates on the off years, that would restore my faith in them.

    Ea's been around a long time. I used to like their stuff back in the day of RA 2 and Emperor: Battle for Dune(of which I am trying to attain a copy presently). I don't really know why they can still sell well. I suppose its the same reason people stick with Microsoft--it's what they know and are comfortable with and, in the case of NFL games, their only viable option. Thankfully, Linux is ever on the rise though.

    But, as with microsoft, I believe their products would be better (and cost less) if they had competition. Microsoft has admitted now that Vista is inadequate and will continue to support XP until Windows 7? comes out. If they were in a heated competition, that would not have happened. Compare that to the console "wars." Each console developer brought something different to the table and worked like crazy to improve their product the best that they could in order to better compete with the others. I own a 360, but I would absolutely and completely hate to see the PS3 go under or get bought out by MS because then there would be no one to push the other to perform better. Just like I wouldn't want T2 to buy out Ea (though they wouldn't come close to being able to afford it)

    Ea is trying to buy their chief competitor (at least in terms of sports games). Nothing good can come of it. Ea will become stagnant in all their sports franchises because they will have minimal motivation. Competition is good for the consumer--this is a universal concept.

  • supersonic125

    Posted Jun 18, 2008 3:42 pm PT

    EA give up already , no means no, lol

  • Act-Naturally

    Posted Jun 18, 2008 3:28 pm PT

    OMG EA! you idiots. i played army of two and it sucked ass! you cant make a good game unless its never been done before or unless its someone elses idea! you're abunch of cheap A'Holes!

  • n4m3l335

    Posted Jun 18, 2008 3:22 pm PT

    EA is basically trying to monopolize the gaming industry by buying out all the competition and making stupid sequels. I will give EA some credit for SKATE, which was a really unique, new experience, but otherwise, everything EA makes is sequels. I give props to Take Two for not taking EA offer. EA will never take GTA ever, and I have yet to see something from them that could kill it.

  • GodzillaX8

    Posted Jun 18, 2008 2:57 pm PT

    EA have made mistakes as recently as 2005, like, oh I don't know, buying out all the licenses for every type of semi-popular football leagues in the US? They don't buy things out in order to ensure the highest quality products are the only ones on the market, they buy them out so they can cut development costs and reduce innovation and no one will care because they have no alternatives. Take-Two also owns 2K Sports which made the utterly fantastic NFL2K series, which were starting to seriously threaten Madden for market share when EA abruptly bought out the rights to circumvent that from happening. Not only that, but NFL2K5 was released in 2004 BRAND NEW at $19.99. This game wasn't just some kind of cheapo value release by ANY means. This game is what many to this day consider to be the greatest incarnation of console football. This is a game that featured amazing ESPN presentation starring Chris Berman. EA realized how amazing their competition was, and how low they were undercutting the prices, and immediately bought out the rights to prevent competition. Does this sound like a decision made for the best interest of the customer? No. This is a decision made in order to have a monopoly on the market so they can charge whatever they want ($59.99) for a football game and still sell it because they have essentially zero competitors. EA is a shambling corporate entity that only cares about the bottom line profit rather than the quality of the games, and the value to the customer. Unfortunately, regardless of how little effort they put into an NFL game it WILL sell enough to make a profit, because NFL games have always been one of the most popular types of games since gaming began essentially.

  • kruddman

    Posted Jun 18, 2008 1:53 pm PT

    @darkride66 - haha good points. I should probably read a bit more about Take-Two before making assumptions. I suppose large corporate movements just irk me and I'd just rather another company not disappear under the EA logo

  • skyline7284

    Posted Jun 18, 2008 1:19 pm PT

    darkride66 your completely right. EA is a half decent company. Theyve made a few mistakes but those were 8 YEARS AGO!!!! Common people mean really!

    @prdroog - Learn to type or don't type at all. What you said makes no sense whatsoever

    @kruddman - Nice tall tale

    @mrkame16 - how is it the "bully" of the gaming industry?? Please explain...

    Not trying to offend anyone but what games other the GTA, Company of Heroes and Bioshock has Take Two made? A majority of their games are crap... If i was EA i would retract my offer, and use the money to buy ubisoft. Ubisoft makes much better games then T2

  • darkride66

    Posted Jun 18, 2008 12:44 pm PT

    @ kruddman. Nicely done. Except the dog is smelly, rabid and has almost killed the owner on more than one occassion. It currently eats more food than the owner can afford to pay, but recently learned an amusing trick that, for as long as it's popular, will pay the bills for a bit. A man calls up and said, "Let me take that dog off your hands, train it, care for it," and the man replies "Hell no! I beat this dog daily and that's the only pleasure life offers me, screw off!"
    The man offers him $80,000, in an attempt to save the dog's life. The owner says, "$80,000, eh? If you're willing to pay that, then others will offer more! Nuts to you! Where's that dog? Time for it's beat'n!"
    Eventually someone needs to step in and save that dog before it's too late.

  • kruddman

    Posted Jun 18, 2008 12:30 pm PT

    It's like there's some guy who has this prized sheepherding dog and I say I'll give you $80,000 for that dog. We have 1,000 expert dog trainers on hand and you can take an extended vacation. It's a more than fair price so why not go for it? Because I love my dog, he says, and I'm proud of what he and I have accomplished in the ways of sheepherding. Being a corporate entity, with no notion of things like love or dedication or the struggle to succeed I plod on. But he says no.

    So I talk to his estranged wife who owns half of his estate and I say, I offered your husband 80,000 dollars for his dog but he refused. Obviously he's a fool. She nods solemnly and then calls and complains to her husband who lives 2 states over.

    Husband why not sell this dog? You will make a lot of money. But my dog is not for sale, he says. And with the prize money we win sheepherding we make more than enough. If I wanted to sell something I would put a tag on it.

    She nods solemnly.

    I say they're all fools for refusing my offer and promise to come back in a few months, sure that they will have seen my sense.

  • Sparky2002

    Posted Jun 18, 2008 12:05 pm PT

    personally I think warhammer will flop, No WOW player will give up 1000's of hours on thier WOW charcaters to start from scratch 1 again on basically the same thing..shore as hell i wont anyways

    i will buy an account ofcourse to have a look at the game but
    when i leave wow, im done with that type of online game. rulz over you life to much spent to many hours to get somewhere....

  • Fat__matt

    Posted Jun 18, 2008 11:00 am PT

    completly agree with darkride66 EA have done some quality stuff 4 an example EA Mythic who r just about to release Warhammer online ad tht looks better than WOW come on a couple of pretty poor games can't b allowed to dam a whole company oh ad ubisoft have done some worse games than EA come on y do ppl prefer them to EA i just don't get it they've swallowed small developers as well

  • darkride66

    Posted Jun 18, 2008 10:00 am PT

    VirtuaCast said "Darkride66 wants EA to have no competition so EA has more money. He likes EA but hates MS, hypocrite."
    Yeah, that's exactly what I'm thinking. I'm shocked how tuned into my thoughts you are.
    Sarcasm aside, I've been a fan of EA games for 20 years now, and I'm still a fan. Despite a few missteps and all the bashing that goes on EA has consistently puts out quality titles. NHL 08 was one of the finest hockey games ever released, and Burnout has been the pinnacle of arcade racing, just to mention two. I don't want anyone to monopolize the industry, but consolidations are just part of big business and will happen. There's room in the world for smaller gems like Little Miss Sunshine, but occassionally we need our big budget Spiderman movies that couldn't be made without the investment and resources of huge Hollywood companies. The games industry really isn't that much different. And I don't hate MS. I think they have a checkerd past but I game on the 360, I use Windows. I'm just sick of the hatred that's been tossed in EA's direction by 12 year olds that haven't figured out how to think for themselves yet. People really need to stop and look around. Are you mad at EA because Army of Two was fun but average, do you just dislike the idea of company's buying other companies (Take Two gobbled up 7 small developers over the last couple of years)? What's really the issue here, because it certainly isn't the overall quality of the products they produce.

  • markharris31

    Posted Jun 18, 2008 9:40 am PT

    @barJerubsheol

    Then EA must be a much better company than T2, since their sales, profit, stock, and cash reserves absolutely dwarf T2. EA must be putting out what their customers want, since they are the largest publisher in the world (until the Activision/Blizzard deal is final). They sell and sell and sell and sell, so they must be giving gamers what they want. So why so many complaints about EA? Even before they had the exclusive NFL rights they were still selling boatloads of Madden and other sports software. They've built an insanely solvent company by selling software, which us gamers have been buying for decades. In fact, a majority of gamers have shown over the years, through their purchases, that they prefer EA and its games over T2. So why the outcry? If a majority of gamers truly despised EA and loved T2 they would be in different positions. T2 would be much larger and profitable, while EA would be a cash-bleeding company that's barely staying afloat. Both companies, at the executive level, care only about what they can sell you, and how much money it will make them. They do not care about you, as a person, trying to make it in the cruel, cruel world. I'm talking to the knee-jerkers and "I h8 you EA, burn in hell" morons who take a business deal as a personal affront. I am not talking to those of you who make reasoned arguments about why you would prefer that T2 remain an independent company (regardless of how it will effect their shareholders).

  • mrkame16

    Posted Jun 18, 2008 9:28 am PT

    Ea is the Bully of the gaming industry thinking they can buy out anyone they feel like, they make me sick. I hope Ubisoft and T2 Merge.

  • otanikun

    Posted Jun 18, 2008 9:27 am PT

    Rockstar will stand firm, but in the end I don't think they'll go with either company, a merger with ubisoft maybe nice but what's to say what can happen in the long run?

  • prdroog

    Posted Jun 18, 2008 9:27 am PT

    DUDE!!!! Doesn't the FTC see that EA is trying to get a monopoly thingy goin on here?! EA is just trying to buy the name behind the GTA series! If they get it, they'll just pump out sorry games with the rockstar, take-two stamp!!! Funk that, thats hella whack!!!

  • DragFire24

    Posted Jun 18, 2008 8:59 am PT

    Another one... already made a comments on the other "offer delays" EA are all bull****...

    "Owen Mahoney, said, "We congratulate Rockstar on the successful launch of Grand Theft Auto IV but..."" Who the hell you think you are? EA doesn't even have to look at R*, they are much superior. And for T2, I see a _MUCH_ better future for them than with Ubisoft.

    EA + T2 = Hopeless games, Profit Only games (byebye GTA).
    Ubisoft +T2 = A lot better than EA + T2 since Ubisoft games are good

    Hope that the right decision is taken following gamers' willingness.

  • Circlestrafe

    Posted Jun 18, 2008 8:51 am PT

    Give it up EA. You can't just buy out everyone, and everyone won't sell out to you.

  • bigkegofhealth

    Posted Jun 18, 2008 8:40 am PT

    Take Two! Don't do it! Think of the children!!! Most of what EA touches turns brown and smelly.

    Ever noticced how most games you can skip the opening credits. Not with EA, they make you sit there staring at their logo for precious gaming minutes.

  • kos1085

    Posted Jun 18, 2008 8:17 am PT

    If EA was serious about the deal then they would just raise their offering. You cant pay the shareholders under what their shares are currently worth.

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