EA tried to buy out Take-Two?!

[Sweet-16]

By BARBARA ORTUTAY, AP Business Writer Wed Mar 26, 11:07 AM ET

NEW YORK - "Grand Theft Auto" publisher Take-Two Interactive told its shareholders Wednesday to reject a $2 billion buyout bid from rival video game company Electronic Arts, saying it's not enough.
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But in the same breath the company said it will explore alternatives, even combining with EA or other third parties, to maximize its value for shareholders. But it wants to wait until after April 29, when "Grand Theft Auto IV," the latest in the blockbuster series, hits store shelves. The game is by far Take-Two's most popular and one of the best-selling franchises in the industry.

The $26-per-share bid turned hostile March 13 when EA took the offer directly to shareholders. Take-Two's board had asked for 10 business days to mull over the decision and that time ran out Wednesday.

Take-Two took several steps to prevent EA from going through with a hostile takeover. It adopted a 180-day shareholders' rights agreement, also known as a "poison pill." It kicks in if an outsider acquires 20 percent of Take-Two's shares or if an existing shareholder who already owns this much buys another 2 percent.

Chairman Strauss Zelnick said the rights agreement "will not, and is not intended to, prevent a takeover of the company on terms that are fair to and in the best interests of all stockholders."

Take-Two also moved back its upcoming annual shareholder meeting to April 17 from April 10 and amended its bylaws to give shareholders more time to nominate board members.

A representative for Redwood City, Calif.-based Electronic Arts Inc. could not immediately be reached for comment.

Take-Two Interactive Software Inc.'s shares have briefly climbed above $26 in recent weeks, but analysts are not expecting the offer to go much higher. The company said it has received other "indications of interest" since EA's offer became public last month, but there haven't been any "substantive discussions."

Take-Two said it is willing to start preliminary talks, including with EA, before April 29 under confidentiality agreements.

i didn't hear anything about this until today. did anyone else know about EA trying to acquire Take-Two?

[- Rx7 -]

EA try to buy everything.

[Skyline_man]

and it backed off...

http://www.worthplaying.com/article.php?sid=55715

[bluestreak908]

yeah
if take-two produces midnight club, and ea had actually succeeded in buying them out, we might have had need for speed: midnight club a year from now
i dont know if that's good or bad

[korge]

Buy out the successful competition?

[- Rx7 -]

Buy out the successful competition?

Take control of the market.

[korge]

Must read.

___________________________________
"Reality of the situation is that while Electronic Arts might be a hit on the sales charts, this does not equal success for the game industry overall.

Some of the reasons that the game industry has thrived so well in the past is that many different development studios were able to compete with each other. Each development house had different standards, different methods, and different potential. The competition was fierce and hard work was done to earn your buck."

http://www.techindemand.com/2007/11/15/ ... e-industry




Also FYI.
___________________________________
"EA bought out Peter Molyneux’s Bullfrog in 1995, soon after Molyneux had left. The same fate landed on Command & Conquer developer Westwood Studios, whose core members left once EA swallowed the company up."

http://www.videogamesblogger.com/2008/0 ... ctions.htm


It was like watching the death of a dynasty.