Electronic Arts Goes Hostile on Take-Two

Mar 13, 7:37 AM (ET)

REDWOOD CITY, Calif. (AP) - Video game maker Electronic Arts Inc. (ERTS) (ERTS) said Thursday that it has launched a hostile $2 billion tender offer for rival Take-Two Interactive Software Inc. (TTWO) (TTWO), the publisher of "Grand Theft Auto" and other video games.

The move takes the offer directly to Take-Two's shareholders after Take-Two rejected the offer late last month.

At the time, Take Two had said it was open to talks with Electronic Arts but wanted to wait until April 30, the day after the latest version of Grand Theft Auto hits store shelves.

The $26 per share cash tender offer from an Electronic Arts' subsidiary represents a 4 percent premium to Take-Two's closing stock price of $24.91 on Wednesday and a 64 percent premium to the company's Feb. 15 closing stock price, which was the last trading day prior to Electronic Arts' revised offer.

The tender offer, which is not contingent on financing, is set to expire at midnight on April 11, unless extended. Take-Two's annual shareholders' meeting is expected to take place on April 10.

People only see money.

EA is a monster that should be put in it's place. Yuk

El Roranous said:

People only see money.

EA is a monster that should be put in it's place. Yuk

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I don't understand this. Then again I am no corporate buy out wiz. What grounds does EA have? If take two says you can't buy us then what basis does EA have to do so? Could EA contact COKE and say we want to buy you. They refuse and EA take them to court? It doesn't make any sense.

That's why it's called a "hostile" take over. Since the company itself won't sell, EA goes to the share holders and buys up as much stock as they can. If they get 51% of the stock.....takeover successful.

It's not very nice, but it's legal.

KitFisto said:

That's why it's called a "hostile" take over. Since the company itself won't sell, EA goes to the share holders and buys up as much stock as they can. If they get 51% of the stock.....takeover successful.

It's not very nice, but it's legal.

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Got it. Makes sense. It's lame but it makes sense.

BadMoon said:

I don't understand this. Then again I am no corporate buy out wiz. What grounds does EA have? If take two says you can't buy us then what basis does EA have to do so? Could EA contact COKE and say we want to buy you. They refuse and EA take them to court? It doesn't make any sense.

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I am not really in the know when it comes to these things but as far as I understand the situation...

If Take-Two is a publically traded company then that means that the majority of the company is owned by share holders and sometimes all they care about is the money. So if the offer is good I believe EA can buy up the majority of Take-two's company and therefore essentially own it.

BadMoon said:

I don't understand this. Then again I am no corporate buy out wiz. What grounds does EA have? If take two says you can't buy us then what basis does EA have to do so? Could EA contact COKE and say we want to buy you. They refuse and EA take them to court? It doesn't make any sense.

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Like Roranous said, "all people see if money"

The Take-Two SHAREHOLDERS probably are not concerned about Take-Two being able to make great games by itself and all they see is the dollar signs. These people are the key as they can force out the Take-Two Prez and put someone in there that would say "yes" to this deal.

By going public and announcing the amount of money in the deal, EA has therefore made this "hostile" because now the shareholders could have a VERY DIFFERENT thought about the deal than the Take-Two management. And they might want to go with EA...


edit: nevermind...everyone beat me to it!

BadMoon said:

Got it. Makes sense. It's lame but it makes sense.

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Yeah, it's happened in many companies. You get a giant like EA and they want to be a monopoly so you either sell to them if they want you or they will bend you over to get what they want anyway.

Oh I see Kit has answered before I could....I'll still leave mine up since it makes me feel special. :chew

El Roranous said:

Oh I see Kit has answered before I could....I'll still leave mine up since it makes me feel special. :chew

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You are special! Anyone who dislikes kids is ok in my book!

El Roranous said:

Oh I see Kit has answered before I could....I'll still leave mine up since it makes me feel special. :chew

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You are special! :chew :chew :chew

KitFisto said:

You are special! Anyone who dislikes kids is ok in my book!

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We are part of a very small club.

El Roranous said:

We are part of a very small club.

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Small, but VERY exclusive. No kid lovers allowed!

El Roranous said:

We are part of a very small club.

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I am happy to report I that I am still a member.

Down with "breeders"!!

OMG. What a derail. I don't want to become as unpopular as Riko now....again.

El Roranous said:

We are part of a very small club.

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Can i join? I hate kids very very much:emperor

Gesh, I remember back in the old days when I would load up a game on my Commodore 64 and the EA logo would come on and change colors while it was loading and all was right with the world. Now they must be stoped and stoped NOW.