EA Bids on Take-Two, then gets rejected (twice)

Over the past couple of days, gaming giant Electronic Arts has bid on Take-Two Interactive with two different offers. The first one being for $25 a share, which was rejected.

The second offer came around midday yesterday for $26 a share. This offer is roughly $2 higher than Take-Two’s highest share price over the past year. Coming late yesterday, a press release was issued stating that “Take-Two Interactive Software’s board rejects Electronic Arts’ unsolicited proposal as inadequate.”

“Given the great importance of the Grand Theft Auto IV launch to the value of Take-Two, the Board has determined that the only prudent and responsible course for [Take-Two] and its stockholders is to defer these discussions until immediately after Grand Theft Auto IV is released. Therefore, we offered to initiate discussions with EA on April 30th, 2008 (the day after Grand Theft Auto IV is scheduled to release).”

In letters from EA, reasons were given why they think Take-Two should be bought out now.

  • They think once GTA IV ships, the share price and value of the company will go down.
  • They also believe that since the company is pretty much done developing GTA IV, now would be the perfect time to merge so there would be minimal disruption inside the company.

Original Source: Reuters
Yahoo! Finance: Take-Two’s Share Chart
Newest Press Release: Take-Two Rejects EA
Network Source: GTA-Division.com

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One Response

  1. […] Electronic Arts started off the week by offering to buy out Take-Two Interactive. It didn’t go so well. Read More. […]

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