EA wants to buy out Take2!!!!! - Page 2

dillonthebunny · 02-26-2008, 04:56 AM

yeh, i remember a report that Take-Two were just waiting for GTA4's release to make them a bit more stable in the financial dept, which is understandable. the amount these companies spend making a game is madness. but i do recall some thing about them needing the profits from GTA4, the sooner the better. but im glad they didnt rush R* for GTA4!!

remember when Team Soho were meant to be making The Getaway look something like what they said it would, but ended up building a pub in their studio.. lol I guess those days are gone for a lot of developers.

Zapix · 02-26-2008, 05:16 AM

From EA's myspace (eatake2.com) page...

Quote:

Electronic Arts will host a conference call on Monday, February 25, 2008 at 5:00 am PT (8:00 am ET) to discuss its proposal to acquire Take-Two Interactive and may disclose other material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number:
(877) 795-3647, access code 220497, or via webcast at http://www.eatake2.com.
A dial-in replay of the conference call will be provided shortly after the call ends and remain available until March 3, 2008 at (719) 457-0820, access code 220497. A webcast archive of the conference call will be available shortly after the call ends at http://www.eatake2.com.

ROFL, they're offering up a recording of the phone conversation... LMAO, how lame!

Electronic Arts should now be voted the laughing stock of the gaming industry for this. LOL, and it's a long distance number.

Child>> Mommy, I wanna call this number to listen to a phone conversation

Mother>> No Billy, you're not spending 10 cents a minute to listen to some silly phone conversation

Child>> BUT MOMMY!!!! I WANA CALL!

Mother>> NO! YOU ARE NOT CALLING!

Wait, EA doesn't like being told no either. Maybe the child will make a website about it! I can't believe EA really thinks anyone cares about the coversation. Seriously, this is more drama than the tabloids!

Zapix · 02-26-2008, 05:20 AM

Oh, and here's a good laugh. EA stocks went down!

http://www.bizjournals.com/sanjose/s...ml?jst=b_ln_hl

Quote:

Shares of Take-Two Interactive Software Inc. posted a record gain Monday after Electronic Arts Inc. announcement on Sunday that it had made a $2 billion offer for the maker of the popular "Grand Theft Auto" games.
Redwood City-based Electronic Arts (NASDAQ:ERTS) offered $26 a share, 50 percent above New York-based Take-Two's (NASDAQ:TTWO) closing price of $17.36 on Friday. But Take-Two's shares rose above the offer price on Monday, jumping 55 percent to $26.89.
That was a record gain ever for the company, which went public in 1997.
EA's stock dropped more than 5 percent Monday to $46.50 before closing at $47.14.
EA said it made its proposal in a letter sent Feb. 19 that Take-Two's board rejected, prompting it to reveal the offer publicly. EA previously offered $25 a share on Feb. 15.
"Our all-cash proposal is a unique opportunity for Take-Two shareholders to realize immediate value at a substantial premium, while creating long-term value for EA shareholders," EA Chief Executive John Riccitiello said in a written statement. "Take-Two's game designers would also benefit from EA's financial resources, stable, game-focused management team, and strong global publishing capabilities."
EA is known for games such as "Madden NFL" and "Need for Speed." It employs 7,710 and posted $76 million in net income on $3.1 billion in revenue it its most recently completed fiscal year, which ended last March.
Take-Two employs 1,900 and posted a $134 million loss on $982 million in revenue in its most recent fiscal year, which ended in October.

Gabriel013 · 02-26-2008, 07:43 AM

That is a big loss. I never realised TT employed quite so many people!

The share drop comment is interesting. It's starting to look like it is in the best interests of TT to drag this into the public rather than EA.

Zapix · 02-27-2008, 10:54 PM

LOL, I find this a somewhat interesting thought, so I decided to share it.

I found the link on the nasdaq website.

http://www.fool.com/investing/genera...ctivision.aspx

Quote:

Your Move, Activision
By Rick Aristotle Munarriz February 27, 2008

Where you at, Activision (Nasdaq: ATVI)? The game's afoot, and it's your turn, but I don't think you even realize that you're playing.

Yes, Sunday's public revelation by Electronic Arts (Nasdaq: ERTS) that Take-Two Interactive (Nasdaq: TTWO) has rebuffed its cash-per-share buyout offers of $25 and $26 appears to be a two-character play.
It doesn't have to be, though. You know it, Activision. You just have to ask yourself a few very important questions:

How much is Take-Two worth to me?

Do I even want Take-Two?

How much is Take-Two worth to my rival?

Should I feign interest to get Electronic Arts to overpay?

Let's tackle the first two questions. With the success of the Guitar Hero and Call of Duty franchises, you may not need hot properties like Grand Theft Auto, Manhunt, and BioShock, even if they fill the slim testosterone gaps in your current titles.

However, the Web-delivered future is coming. You know it all too well, given the pending Activision-Blizzard deal. That union will bring you up to speed with the World of Warcraft wonder of high-margin online multiplayer communities.

A lot of Take-Two's franchises, like Grand Theft Auto and BioShock, and even some of the ho-hum commercially lamentable Take-Two properties like Bully, would fit right in with online community gaming.

Take-Two -- a timely recommendation for Rule Breakers subscribers a few months ago -- also has a thriving niche in lower-tier sporting titles. That may be backseat fodder for the EA Sports behemoth, but wouldn't it be welcome ammo for you, Activision?

If EA corners sporting games -- the way it did pro football games, when it struck an exclusivity license with the NFL -- won't EA have the flexibility to truly fatten its coffers with sports games that lend themselves perfectly to annual updates?

This brings us to the third question, posing the possibility that Activision might make a play for Take-Two, if only to keep it out of EA's grubby fingers.

Making a play for the play's sake
Take-Two is the last of the indies. THQ (Nasdaq: THQI) scores well with licensed fare but there's no Grand Theft Auto to get the high-margin juices flowing. Smaller players like Majesco (Nasdaq: COOL) and Atari (Nasdaq: ATAR) are too small to move the needle.

Take-Two under Activision means that it wouldn't be under EA. The stakes are meaty, especially with EA and Activision Blizzard now jockeying for market superiority.

However, even if Activision doesn't feel that it wants to expend the resources to acquire Take-Two, it can still enter the bidding war, if only to either get EA to pay more than it may have to for Take-Two, or smoke out another potential suitor like MTV parent Viacom (NYSE: VIA).

If Take-Two chuckled at EA's buyout offer at $26, pointing to April's release date of Grand Theft Auto IV as a potentially valuation-altering event, it probably wouldn't think much of Activision joining the fray at $29. However, that simple act would leave EA turning frenetic circles on the floor like Curly from The Three Stooges.

Let Activision get up to speed with sports-game engines? Let Activision bolster its healthy position in racing games by tossing in the naughty carjacking storylines of Grand Theft Auto?

Electronic Arts could bid $30 -- or even in the low $30s -- and the deal would still likely be accretive in the short term.

Activision's presence may also bring Viacom to the table, since the two companies are already duking it out in the battle of Guitar Hero vs. Rock Band. Remember, Viacom was rumored to be interested in Take-Two earlier this month (though at lower price points).

Either way, you've got a decision to make, Activision. Shoot or pass, but the ball is in your hands.

dillonthebunny · 02-28-2008, 03:16 AM

and now with Ubisoft in the picture, it just gets better....

Zapix · 02-28-2008, 11:55 AM

Hmmmm... UbiTakeSoft2 that would be an interesting merger! website on it could be thewaragainstea.com

I dunno, I'm no big fan of Activision either, but I think they probably have their head screwed on better than EA. Maybe...

Mr. SunburnMan · 02-28-2008, 04:31 PM

Actually EA's gotten better in the last 2 years with their acquisitions. Instead of destroying the entities that they purchase, they let them exist now.

The Benny (Macho) · 02-28-2008, 10:24 PM

BioWare's fate will obviously be a strong guide to how well EA have mended their ways; they certainly have a lot of ground to make up in that respect. The idea of EA buying one of their only real rivals with regards to sport franchises doesn't seem like something that could ever have a positive outcome though. Except for shareholders, of course.

Zapix · 02-29-2008, 12:29 AM

Although I don't play sports games, I can't really see anyone benefiting from this unless you're in the market for a monopoly game hosted by Homer Simpson...

I for one believe the best way to make things better is through competition. It drives the market to be more innovative, and develop and create something better than what was made last year. Being into automotive, I love nothing more than seeing my Subaru WRX being challenged by it's sucessors, and other cars that would dare to make me last years news.

As for watching BioWare, yes, it will be interesting, especially with a MASS EFFECT sequel of sorts in the works. The first game was creative, innovative, something you don't get from EA. So now we can watch at which speed EA wishes to press the game being released, and the quality it gives. If EA follows history, we'll see the sequel in maybe early to mid 2009 (sooner the better right so they can cash in on the title?!), probably given a ton of advertising, and it'll flop on it's face before it ever lived.

02-26-2008, 04:56 AM	#11
dillonthebunny Blinkity blink blink Join Date: Feb 2003 PS2 Online ID: Dillonthebunny/HareofDoom PS3 Network ID: HareOfDoom/DillonTheBunny Posts: 5,341	yeh, i remember a report that Take-Two were just waiting for GTA4's release to make them a bit more stable in the financial dept, which is understandable. the amount these companies spend making a game is madness. but i do recall some thing about them needing the profits from GTA4, the sooner the better. but im glad they didnt rush R* for GTA4!! remember when Team Soho were meant to be making The Getaway look something like what they said it would, but ended up building a pub in their studio.. lol I guess those days are gone for a lot of developers. __________________ Legend Edgemaster of the Unicorn. oh and nine thousand fake forum tokens, 3 real ones and 5 special tokens mysteriously protected by a blinding white aura.. known to some as the 'anti wife light'.. ""Bombing for peace is like **ing for virginity" "NO OFFENCE" R.I.P @PS3

02-26-2008, 07:43 AM	#14
Gabriel013 ArchAngel Join Date: Feb 2003 Location: Sheffield, England PS3 Network ID: gabriel013 Xbox Live ID: Gabriel013 Posts: 6,536	That is a big loss. I never realised TT employed quite so many people! The share drop comment is interesting. It's starting to look like it is in the best interests of TT to drag this into the public rather than EA. __________________ \"...and he shall ascend from the fires of Hell...\" "everyone knows second hand squirrel kills." - Svosen 3 forum tokens

02-28-2008, 03:16 AM	#16
dillonthebunny Blinkity blink blink Join Date: Feb 2003 PS2 Online ID: Dillonthebunny/HareofDoom PS3 Network ID: HareOfDoom/DillonTheBunny Posts: 5,341	and now with Ubisoft in the picture, it just gets better.... __________________ Legend Edgemaster of the Unicorn. oh and nine thousand fake forum tokens, 3 real ones and 5 special tokens mysteriously protected by a blinding white aura.. known to some as the 'anti wife light'.. ""Bombing for peace is like **ing for virginity" "NO OFFENCE" R.I.P @PS3

02-28-2008, 11:55 AM	#17
Zapix Senior Member Join Date: Jan 2008 Location: England 2.0 PS3 Network ID: Zapix Xbox Live ID: Zapix Posts: 201	Hmmmm... UbiTakeSoft2 that would be an interesting merger! website on it could be thewaragainstea.com I dunno, I'm no big fan of Activision either, but I think they probably have their head screwed on better than EA. Maybe... __________________ PS3: DMC4, Enchanted Arms, Genji, GR AW2, GT5P, MGS4, Motorstorm, NG Sigma, Oblivion, Sonic, UT3 360: CoD4, Forza 2, GTA IV, Halo 3, KUF, Lost Odyssey, Marvel UA, Mass Effect, Naruto: RoTN PSP: FF, FF Tactics, FF VII: CC, Wipeout Pure and Pulse FFXI (Diabolos): Knitemare (75DRG), Gentatsu (75SAM), Kaymin (42RDM)

02-28-2008, 04:31 PM	#18
Mr. SunburnMan I don't own a ps3 Join Date: Feb 2003 Posts: 4,461	Actually EA's gotten better in the last 2 years with their acquisitions. Instead of destroying the entities that they purchase, they let them exist now. __________________

02-28-2008, 10:24 PM	#19
The Benny (Macho) Complainer of the year Join Date: Feb 2003 Location: England Posts: 1,139	BioWare's fate will obviously be a strong guide to how well EA have mended their ways; they certainly have a lot of ground to make up in that respect. The idea of EA buying one of their only real rivals with regards to sport franchises doesn't seem like something that could ever have a positive outcome though. Except for shareholders, of course. __________________ The poster formerly known as Macho Man!

02-29-2008, 12:29 AM	#20
Zapix Senior Member Join Date: Jan 2008 Location: England 2.0 PS3 Network ID: Zapix Xbox Live ID: Zapix Posts: 201	Although I don't play sports games, I can't really see anyone benefiting from this unless you're in the market for a monopoly game hosted by Homer Simpson... I for one believe the best way to make things better is through competition. It drives the market to be more innovative, and develop and create something better than what was made last year. Being into automotive, I love nothing more than seeing my Subaru WRX being challenged by it's sucessors, and other cars that would dare to make me last years news. As for watching BioWare, yes, it will be interesting, especially with a MASS EFFECT sequel of sorts in the works. The first game was creative, innovative, something you don't get from EA. So now we can watch at which speed EA wishes to press the game being released, and the quality it gives. If EA follows history, we'll see the sequel in maybe early to mid 2009 (sooner the better right so they can cash in on the title?!), probably given a ton of advertising, and it'll flop on it's face before it ever lived. __________________ PS3: DMC4, Enchanted Arms, Genji, GR AW2, GT5P, MGS4, Motorstorm, NG Sigma, Oblivion, Sonic, UT3 360: CoD4, Forza 2, GTA IV, Halo 3, KUF, Lost Odyssey, Marvel UA, Mass Effect, Naruto: RoTN PSP: FF, FF Tactics, FF VII: CC, Wipeout Pure and Pulse FFXI (Diabolos): Knitemare (75DRG), Gentatsu (75SAM), Kaymin (42RDM)

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