EA wants to buy out Take2!!!!! - Page 3

Zapix · 03-17-2008, 06:53 AM

Hmmm...

I just found this while trying to look up newer info about the buyout... Goes back to August last year...

http://www.gamasutra.com/php-bin/new...hp?story=15298

Quote:

Pachter: EA Take-Two Takeover Unlikely

In his latest note to investors, Wedbush Morgan analyst Michael Pachter has detailed his reasoning on why it's unlikely, as some have posited, that EA will make a bid for Take-Two, as well as expressed a lack of confidence in management and GTA IV's timely release.

"One of our competitors recently floated the idea that Take-Two would make an ideal candidate for acquisition by Electronic Arts," said Pachter, but adding that "we don’t think this is at all likely," for a number of reasons.

First, he continued, was a matter of corporate culture. Between "open-ended delivery dates, artistic freedom, and incredibly violent games," as well as "several teams... that produce only one game every two years," and "games with sufficient sexual content and violence to receive AO ratings," the combination is "something that would not be tolerated at EA."

Further, "not withstanding the immense value many would place on the GTA franchise," the publisher is in a "very low cash position," with its sports licenses, bloated overhead and few games "incremental to EA’s," apart from GTA, Bioshock and Civilization.

"The company’s sports games and its Midnight Club franchise are duplicative of other EA games," he noted, "and an acquisition of these rights would only make sense if EA were to choose to shut them down. We believe that EA would benefit from a sports and street-racing quasi-monopoly, but do not believe that the company is willing to pay a premium to do so."

Finally, said Pachter, EA hasn't been a successful bidder on any other "fire sale" assets from publishers like Atari, 3DO, Acclaim and Eidos, despite each with their own successful franchises like Stuntman, Tomb Raider, Hitman, Juiced and Turok.

"We think that EA’s reticence to bid on any of these assets speaks volumes about the company’s approach to acquisitions," said Pachter, "and note that its recent M&A activity involved companies like Criterion (makers of Burnout), Mythic (makers of Dark Ages of Camelot) and Digital Illusions (makers of Battlefield), each for under $100 million."

"EA appears to us to prefer bite-sized acquisitions, and we think the company is unlikely to make a move on Take-Two," he concluded on the matter, adding that even other floated likely Take-Two bidders such as News Corp. would be hard pressed to make moves "without the confidence that it is buying a strong management team."

On that note, Pachter added that Wedbush remains "unprepared to express confidence in Take-Two management until we see some positive results," despite doing "many things right," with "several structural obstacles" remaining.

"The company has begun an initiative to improve the green light process for new projects," he said, "but given the delays of Manhunt and GTA, its process for monitoring projects under development still appears to be a work in progress."

Without better results, Pachter says he is "uncertain that GTA (or any other major franchise) will arrive on schedule, and remain skeptical that any other franchise [such as Max Payne, Red Dead Revolver] will be regularly repeated."

fastforward to today, and he's saying it's going to happen. So, hey, whatever happened to the idea that buying out Take-Two would give EA a monopoly, and the whole buyout would just be a redundancy of games which one or the other would have to get dropped...

Hmmmm...

Somebody needs to tell EA to drop dead.

Zapix · 06-13-2008, 12:55 AM

In case anyone was wondering or forgot about this little topic...

This was posted by USA TODAY yesterday.

http://www.usatoday.com/tech/gaming/...-hearing_N.htm

Quote:

NEW YORK (Reuters) — Take-Two Interactive Software has been asked by a U.S. court to show why it is not in compliance with a subpoena and civil investigative demand (CID) by regulators reviewing a takeover bid by Electronic Arts, according to its regulatory filings Wednesday.

The subpoena and CID, issued by the U.S. Federal Trade Commission, requested that Take-Two provide additional information in connection with EA's $26-a-share offer to buy the company.

Take-Two, which makes the popular Grand Theft Auto video- game franchise, rejected a $2 billion buy-out offer from EA in February, saying the offer did not fairly value Take-Two's business.

The U.S. District Court for the District of Columbia has scheduled a hearing on June 24 to determine whether Take-Two is required to comply with the FTC request.

Take-Two said in the filing it intends to oppose the FTC's petition should it be unable to reach a settlement before the hearing.

Take-Two said it has already provided FTC with "enormous quantities of data and access to key executives," but said it believes the FTC's subpoena and CID are "unnecessarily broad and would entail unacceptable additional expense."

It said to limit the expense and labor of the FTC's demand it has sought to obtain reasonable limits on the scope of the information sought.

Take Two's management said last week it was in formal discussions with other parties about strategic alternatives.

dillonthebunny · 06-13-2008, 02:01 AM

it seems like TT dont want it to, but everyone else does. (apart from the gamers).. so the Gamers and TT say no, and everyone who has nothing to do with the making or the enjoyment of the final product are the ones who will make sure that EA get their wish.

lol.. that just isnt right.

I know its going to happen, and im happy that GTA4 wasnt touched by EA sweaty mitts, but 1% of me says that if EA had got their mitts on GTA4 then at least the Online aspect of GTA would of been better handled.

but thats the only nice thing i will ever say about this take over.

The Benny (Macho) · 06-13-2008, 06:35 AM

I guess it all depends on the whole competition analysis. It doesn't take much digging to see that when EA have a monopoly on a sports franchise they have no competition, prices go up and the games don't innovate (in fact, EA are the targets of a lawsuit about that very subject).

Which ultimately means it boils down to how they view the significance of a sports game monopoly, especially when any developer can theoretically make a sports game without using official names.

06-13-2008, 02:01 AM	#23
dillonthebunny Blinkity blink blink Join Date: Feb 2003 PS2 Online ID: Dillonthebunny/HareofDoom PS3 Network ID: HareOfDoom/DillonTheBunny Posts: 5,506	it seems like TT dont want it to, but everyone else does. (apart from the gamers).. so the Gamers and TT say no, and everyone who has nothing to do with the making or the enjoyment of the final product are the ones who will make sure that EA get their wish. lol.. that just isnt right. I know its going to happen, and im happy that GTA4 wasnt touched by EA sweaty mitts, but 1% of me says that if EA had got their mitts on GTA4 then at least the Online aspect of GTA would of been better handled. but thats the only nice thing i will ever say about this take over. __________________ 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

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

06-13-2008, 06:35 AM	#24
The Benny (Macho) Complainer of the year Join Date: Feb 2003 Location: England Posts: 1,375	I guess it all depends on the whole competition analysis. It doesn't take much digging to see that when EA have a monopoly on a sports franchise they have no competition, prices go up and the games don't innovate (in fact, EA are the targets of a lawsuit about that very subject). Which ultimately means it boils down to how they view the significance of a sports game monopoly, especially when any developer can theoretically make a sports game without using official names.