EA wants to buy out Take2!!!!!

dillonthebunny · 02-24-2008, 03:39 PM

ok.. you know when something bad happens, so horrid that you actually throw up a lil in your mouth?

when i heard this, thats what happened to me.

god i hope its not true, and if so.. and theyre successful, I hope to god Sony do something with Rockstar to cut out EA.

anyway heres the link http://kotaku.com/360123/ea-makes-offer-to-buy-take-2

and for those who cant be arsed to go there, heres a copy...

Electronic Arts just called me to let me know that they are making a bid to acquire Take-Two Interactive in an all-cash merger of about $2 billion.
The offer set Take-Two's stock at $26 per a share, about 64 percent over the company's closing stock price prior to the company's Feb. 15 offer.
Take-Two's board rejected the offer, leading Electronic Arts to make their offer public to the company's shareholders.

In the letter, attached in the jump, EA CEO John Riccitiello tells Take-Two's Stauss Zelnick that the buy-out would help both the company and its stock holders:

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. Take-Two's game designers would also benefit from EA's financial resources, stable, game-focused management team, and strong global publishing capabilities.\ ... There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today.

Specifically, the letter mentions that EA could really help out with the launch of GTA IV. Hit the jump for the full letter and check back later to read our interview with Riccitiello.

February 19, 2008
Mr. Strauss Zelnick
Executive Chairman of the Board of Directors
Take-Two Interactive Software, Inc.
622 Broadway
New York, NY 10012
Dear Strauss:
Thank you for your letter of February 15, 2008. While I appreciate its courteous tone and value our ongoing dialogue, I am disappointed that you have rejected Electronic Arts Inc.'s ("EA's") $25 per share cash offer to acquire Take-Two Interactive Software, Inc. ("Take-Two") and declined to engage in the friendly negotiations we proposed. We continue to believe that an acquisition of Take-Two by EA is in the best interests of your shareholders, employees and other constituents, and we remain interested in acquiring Take-Two. So, to further demonstrate our seriousness and encourage you to move forward now, I am writing to increase EA's offer to acquire all of the outstanding shares of Take-Two to $26 per share in cash. This offer is subject to Take-Two agreeing by February 22, 2008 to commence negotiation of a definitive merger agreement and to permit EA to commence a limited due diligence review of Take-Two.

Our revised all-cash offer represents a 64% premium over Take-Two's most recent closing price and a 63% premium over Take-Two's 30-day trailing average price (based on prices as of market close on Friday, February 15th). We believe our offer represents a unique and compelling opportunity for Take-Two shareholders to maximize the value of their investment in the company, with materially lower risk than if Take-Two proceeds on a stand-alone basis.

We also believe that the transaction we are proposing represents a uniquely attractive opportunity for Take-Two's creative teams and key employees. EA is a diversified leader with well-established franchises and proven intellectual properties, global reach, and significant financial resources. I know we both agree that Take-Two's talented creative teams deserve a permanent home within a stable and growing publisher that provides these teams an environment to do what they do best - create great games. EA is organized in a four-label model that provides our creative teams the autonomy they need to fully realize their creative ambitions, while also providing a stable and supportive corporate and publishing infrastructure which allows them to best address the global marketplace. We have the resources to make the significant investments in technology and infrastructure needed for the most creative and innovative games in the industry. In short, a combination with EA would provide Take-Two's studios and employees a combination of the right resources for investment and global reach, and the right environment to do their best work.

We believe that Take-Two's shareholders would not be well-served by any further delay in negotiating and completing the proposed merger. While the videogame industry remains an attractive, high-growth business, the challenges and risks in the business are escalating, and the need for scale is becoming more pronounced. Despite steps taken since March 2007, Take-Two remains dependent on a limited number of titles, and has limited capital resources. In addition, Take-Two faces ongoing financial, legal and operating issues and a very intense competitive environment. Given these factors, we believe it will be increasingly difficult for Take-Two to create sustainable shareholder value and that Take-Two remains exposed to considerable risk of value loss.

We also believe that any delay in this proposed transaction works against the interest of Take-Two's shareholders, because:
-- There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today. We place significant value on the ability to close the transaction relatively quickly so that EA's strong publishing and distribution network, including our global packaged goods, online and wireless publishing organizations, can positively impact the catalogue sales of GTA IV and also the launch and sale of titles released later this year. We want to work with you and your team to complete the transaction in time to begin realizing its significant marketplace benefits in advance of this year's holiday selling season.
-- We believe Take-Two's current share price already reflects investor expectations for a strong release of GTA IV as well as the longer-term issues that Take-Two faces. Once GTA IV ships, Take-Two will again be dependent on less-popular titles and face increasing challenges to compete with larger and better-capitalized competitors.

-- With GTA IV shipping on April 29, development on this important title must now be essentially complete. We believe now is the right time to complete a transaction with minimal disruption for Take-Two.
We also believe the transaction we are proposing will create value for EA's shareholders. In addition to the top-line benefits noted above, we can achieve bottom-line benefits by combining Take-Two's and EA's corporate and publishing infrastructures and by optimally supporting Take-Two's creative teams and intellectual properties in EA's decentralized label structure.

Considerable thought, time and resources have been put forth in developing this offer, and our Board of Directors unanimously supports it. Our offer is not conditioned on any financing requirement. It is subject to the satisfactory completion of a due diligence review of Take-Two, the negotiation and execution of mutually acceptable definitive transaction agreements, and the satisfaction of customary conditions to be set forth in such agreements. We are prepared to move forward immediately with formal due diligence and the negotiation and execution of a definitive merger agreement and believe that with adequate access to the necessary information and people, we can complete both in approximately two weeks. We believe that our due diligence review can be completed with minimal disruption, requiring only limited access to a small number of senior executives of Take-Two and its legal, accounting and financial advisors. We also have prepared a draft merger agreement that we can forward to you immediately.

Our strong preference is to conduct a private negotiation. If you are unwilling to proceed on that basis, however, we may pursue other means, including the public disclosure of this letter, to bring our offer and the compelling value it represents to the attention of Take-Two's shareholders.

I am available to meet and discuss any and all aspects of this proposal with you and your Board. Again, we believe this proposal represents a unique opportunity to maximize value for Take-Two's shareholders, and that the combined enterprise would be extraordinarily well positioned to build value for our respective customers, employees, developers and other business partners. We hope that you and your Board share our enthusiasm, and we look forward to hearing back from you by February 22."

...Hmmm, EA= the Darth Vader of Computer games

Gabriel013 · 02-25-2008, 01:54 AM

They really are pushy aren't they. I'm sure most of the shareholders don't care about the games and might be eager to take their share of the cash.

Take Two may have said no but I don't expect this will be the last we hear of it.

dillonthebunny · 02-25-2008, 03:09 AM

i agree... i can see this happening.

Do Take-Two own RockStar though?

Zapix · 02-25-2008, 03:50 AM

Funny a topic like this came up. Without even knowing about this news, I was thinking yesterday or so about what happens to game companies that get bought out. Perhaps I was thinking about this because of SquareSoft, who knows. I was thinking about what happens to the developers for that company that gets bought out, and what happens to future titles.

I don't see this is good news for the game industry personally. As you said Gabriel, the shareholders are more interested in the money, while the comsumer will get the short end of the stick. Way I see it, EA wants their hand in the cookie jar on their games so they can be the ones to walk to the bank before Take2 can.

On that note, yes, they own Rockstar
Quoted from Wiki Encyclopedia

Quote:

Rockstar Games is a development division of video game publisher Take-Two Interactive, based in New York City, United States.

Personally I don't think I've purchased a game that EA had anything to do with in a long time! Infact, come to think of it, last time would have been THE SIMS. The original one. Wonder why they're so desperate

Too bad the NFS series went in the direction of FAST AND THE FURIOUS... I enjoyed NFS3 and High Stakes on the PC

dillonthebunny · 02-25-2008, 04:01 AM

shame.. so when the rumour came out that Sony was going to take R* under its wing, what exactly did it mean? that Take-Two would sell R* to Sony ..or what? because its an odd thing to of been said.

yet when everyone was talking about it, they wernt saying it was odd because R* was owned by Take-Two.. so there must be some loop hole somewhere?

obviously as you have shown us that Take-Two do in fact own R*, I wonder what restrictions they have in regards to wonership of R* and products done by R*?

Zapix · 02-25-2008, 02:36 PM

that eatake2.com website is truly sickening; a gross display of poor business ethics and abuse of internet freedom. EA should be ashamed of themselves for acting this way. It's childish, like a little brat kid not getting his ice cream cone, and pitching a fit about it on the internet how he was told "no" GET OVER IT EA! >.>

Mr. SunburnMan · 02-25-2008, 09:11 PM

Quote:

Originally Posted by dillonthebunny

shame.. so when the rumour came out that Sony was going to take R* under its wing, what exactly did it mean?

that it was probably made up by a lonely 13 year old kid.

Gabriel013 · 02-26-2008, 02:54 AM

EA only want Take Two for the GTA release. They have refused to enter talks after GTA 4 hits the stores and I think this is the only time TT would be interested.

dillonthebunny · 02-26-2008, 04:07 AM

Quote:

Originally Posted by Mr. SunburnMan

that it was probably made up by a lonely 13 year old kid.

lol, well it certainly grabbed the industry seeing as every site reported it. that 13 year old should be very proud!!

I agree with you Gabe, i bet the offer of $26 will go down after GTA4 release. I didnt think Take-Two were in trouble? they way EA put it in their new web site page was that Take-Two might get eaten by the big boys of the Gaming industry...

erm, hello? when people thing of the biggest games in the industry GTA is one of them, and naturally R* and Take-two are in the next breath of the sentance.

EA are being so pathetically gimp over this, they really should just get a life, obvious to everyone why they are doing it, there is nothing noble about it what so ever.

Gabriel013 · 02-26-2008, 04:33 AM

AK said that TT shares are closing on $26 now anyway so EA have only wounded their own position with this public display.

I think EA are referring to the financial impact of the lawsuits and other cost struggles of a relatively small developer. I don't think you could say TT are struggling but they probably aren't rolling in cash.

02-24-2008, 03:39 PM	#1
dillonthebunny Blinkity blink blink Join Date: Feb 2003 PS2 Online ID: Dillonthebunny/HareofDoom PS3 Network ID: HareOfDoom/DillonTheBunny Posts: 5,414	EA wants to buy out Take2!!!!! ok.. you know when something bad happens, so horrid that you actually throw up a lil in your mouth? when i heard this, thats what happened to me. god i hope its not true, and if so.. and theyre successful, I hope to god Sony do something with Rockstar to cut out EA. anyway heres the link http://kotaku.com/360123/ea-makes-offer-to-buy-take-2 and for those who cant be arsed to go there, heres a copy... Electronic Arts just called me to let me know that they are making a bid to acquire Take-Two Interactive in an all-cash merger of about $2 billion. The offer set Take-Two's stock at $26 per a share, about 64 percent over the company's closing stock price prior to the company's Feb. 15 offer. Take-Two's board rejected the offer, leading Electronic Arts to make their offer public to the company's shareholders. In the letter, attached in the jump, EA CEO John Riccitiello tells Take-Two's Stauss Zelnick that the buy-out would help both the company and its stock holders: 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. Take-Two's game designers would also benefit from EA's financial resources, stable, game-focused management team, and strong global publishing capabilities.\ ... There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today. Specifically, the letter mentions that EA could really help out with the launch of GTA IV. Hit the jump for the full letter and check back later to read our interview with Riccitiello. February 19, 2008 Mr. Strauss Zelnick Executive Chairman of the Board of Directors Take-Two Interactive Software, Inc. 622 Broadway New York, NY 10012 Dear Strauss: Thank you for your letter of February 15, 2008. While I appreciate its courteous tone and value our ongoing dialogue, I am disappointed that you have rejected Electronic Arts Inc.'s ("EA's") $25 per share cash offer to acquire Take-Two Interactive Software, Inc. ("Take-Two") and declined to engage in the friendly negotiations we proposed. We continue to believe that an acquisition of Take-Two by EA is in the best interests of your shareholders, employees and other constituents, and we remain interested in acquiring Take-Two. So, to further demonstrate our seriousness and encourage you to move forward now, I am writing to increase EA's offer to acquire all of the outstanding shares of Take-Two to $26 per share in cash. This offer is subject to Take-Two agreeing by February 22, 2008 to commence negotiation of a definitive merger agreement and to permit EA to commence a limited due diligence review of Take-Two. Our revised all-cash offer represents a 64% premium over Take-Two's most recent closing price and a 63% premium over Take-Two's 30-day trailing average price (based on prices as of market close on Friday, February 15th). We believe our offer represents a unique and compelling opportunity for Take-Two shareholders to maximize the value of their investment in the company, with materially lower risk than if Take-Two proceeds on a stand-alone basis. We also believe that the transaction we are proposing represents a uniquely attractive opportunity for Take-Two's creative teams and key employees. EA is a diversified leader with well-established franchises and proven intellectual properties, global reach, and significant financial resources. I know we both agree that Take-Two's talented creative teams deserve a permanent home within a stable and growing publisher that provides these teams an environment to do what they do best - create great games. EA is organized in a four-label model that provides our creative teams the autonomy they need to fully realize their creative ambitions, while also providing a stable and supportive corporate and publishing infrastructure which allows them to best address the global marketplace. We have the resources to make the significant investments in technology and infrastructure needed for the most creative and innovative games in the industry. In short, a combination with EA would provide Take-Two's studios and employees a combination of the right resources for investment and global reach, and the right environment to do their best work. We believe that Take-Two's shareholders would not be well-served by any further delay in negotiating and completing the proposed merger. While the videogame industry remains an attractive, high-growth business, the challenges and risks in the business are escalating, and the need for scale is becoming more pronounced. Despite steps taken since March 2007, Take-Two remains dependent on a limited number of titles, and has limited capital resources. In addition, Take-Two faces ongoing financial, legal and operating issues and a very intense competitive environment. Given these factors, we believe it will be increasingly difficult for Take-Two to create sustainable shareholder value and that Take-Two remains exposed to considerable risk of value loss. We also believe that any delay in this proposed transaction works against the interest of Take-Two's shareholders, because: -- There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today. We place significant value on the ability to close the transaction relatively quickly so that EA's strong publishing and distribution network, including our global packaged goods, online and wireless publishing organizations, can positively impact the catalogue sales of GTA IV and also the launch and sale of titles released later this year. We want to work with you and your team to complete the transaction in time to begin realizing its significant marketplace benefits in advance of this year's holiday selling season. -- We believe Take-Two's current share price already reflects investor expectations for a strong release of GTA IV as well as the longer-term issues that Take-Two faces. Once GTA IV ships, Take-Two will again be dependent on less-popular titles and face increasing challenges to compete with larger and better-capitalized competitors. -- With GTA IV shipping on April 29, development on this important title must now be essentially complete. We believe now is the right time to complete a transaction with minimal disruption for Take-Two. We also believe the transaction we are proposing will create value for EA's shareholders. In addition to the top-line benefits noted above, we can achieve bottom-line benefits by combining Take-Two's and EA's corporate and publishing infrastructures and by optimally supporting Take-Two's creative teams and intellectual properties in EA's decentralized label structure. Considerable thought, time and resources have been put forth in developing this offer, and our Board of Directors unanimously supports it. Our offer is not conditioned on any financing requirement. It is subject to the satisfactory completion of a due diligence review of Take-Two, the negotiation and execution of mutually acceptable definitive transaction agreements, and the satisfaction of customary conditions to be set forth in such agreements. We are prepared to move forward immediately with formal due diligence and the negotiation and execution of a definitive merger agreement and believe that with adequate access to the necessary information and people, we can complete both in approximately two weeks. We believe that our due diligence review can be completed with minimal disruption, requiring only limited access to a small number of senior executives of Take-Two and its legal, accounting and financial advisors. We also have prepared a draft merger agreement that we can forward to you immediately. Our strong preference is to conduct a private negotiation. If you are unwilling to proceed on that basis, however, we may pursue other means, including the public disclosure of this letter, to bring our offer and the compelling value it represents to the attention of Take-Two's shareholders. I am available to meet and discuss any and all aspects of this proposal with you and your Board. Again, we believe this proposal represents a unique opportunity to maximize value for Take-Two's shareholders, and that the combined enterprise would be extraordinarily well positioned to build value for our respective customers, employees, developers and other business partners. We hope that you and your Board share our enthusiasm, and we look forward to hearing back from you by February 22." ...Hmmm, EA= the Darth Vader of Computer games __________________ 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

02-25-2008, 01:54 AM	#2
Gabriel013 ArchAngel Join Date: Feb 2003 Location: Sheffield, England PS3 Network ID: gabriel013 Xbox Live ID: Gabriel013 Posts: 6,597	They really are pushy aren't they. I'm sure most of the shareholders don't care about the games and might be eager to take their share of the cash. Take Two may have said no but I don't expect this will be the last we hear of it. __________________ \"...and he shall ascend from the fires of Hell...\" "everyone knows second hand squirrel kills." - Svosen 3 forum tokens

02-25-2008, 03:09 AM	#3
dillonthebunny Blinkity blink blink Join Date: Feb 2003 PS2 Online ID: Dillonthebunny/HareofDoom PS3 Network ID: HareOfDoom/DillonTheBunny Posts: 5,414	i agree... i can see this happening. Do Take-Two own RockStar though? __________________ 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

02-25-2008, 04:01 AM	#5
dillonthebunny Blinkity blink blink Join Date: Feb 2003 PS2 Online ID: Dillonthebunny/HareofDoom PS3 Network ID: HareOfDoom/DillonTheBunny Posts: 5,414	shame.. so when the rumour came out that Sony was going to take R* under its wing, what exactly did it mean? that Take-Two would sell R* to Sony ..or what? because its an odd thing to of been said. yet when everyone was talking about it, they wernt saying it was odd because R* was owned by Take-Two.. so there must be some loop hole somewhere? obviously as you have shown us that Take-Two do in fact own R, I wonder what restrictions they have in regards to wonership of R and products done by R? __________________ 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

02-25-2008, 02:36 PM	#6
Zapix Senior Member Join Date: Jan 2008 Location: England 2.0 PS3 Network ID: Zapix Xbox Live ID: Zapix Posts: 286	that eatake2.com website is truly sickening; a gross display of poor business ethics and abuse of internet freedom. EA should be ashamed of themselves for acting this way. It's childish, like a little brat kid not getting his ice cream cone, and pitching a fit about it on the internet how he was told "no" GET OVER IT EA! >.> __________________ 'Maybe I could use my PSP to control his PS3!' - cAtDaFeLiX (regarding Dillon's PS3)

02-26-2008, 02:54 AM	#8
Gabriel013 ArchAngel Join Date: Feb 2003 Location: Sheffield, England PS3 Network ID: gabriel013 Xbox Live ID: Gabriel013 Posts: 6,597	EA only want Take Two for the GTA release. They have refused to enter talks after GTA 4 hits the stores and I think this is the only time TT would be interested. __________________ \"...and he shall ascend from the fires of Hell...\" "everyone knows second hand squirrel kills." - Svosen 3 forum tokens

02-26-2008, 04:33 AM	#10
Gabriel013 ArchAngel Join Date: Feb 2003 Location: Sheffield, England PS3 Network ID: gabriel013 Xbox Live ID: Gabriel013 Posts: 6,597	AK said that TT shares are closing on $26 now anyway so EA have only wounded their own position with this public display. I think EA are referring to the financial impact of the lawsuits and other cost struggles of a relatively small developer. I don't think you could say TT are struggling but they probably aren't rolling in cash. __________________ \"...and he shall ascend from the fires of Hell...\" "everyone knows second hand squirrel kills." - Svosen 3 forum tokens

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