EA Takes Out $US 1 Billion Loan For Take-Two Acquisition
SEC filings have revealed that Electronic Arts borrowed $US 1 billion from Morgan Stanley and other lenders to help finance a possible acquisition of Take-Two.
"There's no news here," said EA VP of communications Jeff Brown. "This is just a process point on something we announced in February."
With $US 2.3 billion on hand in cash, cash equivalents and short-term investments, EA already has the funds available to do the deal as it currently stands. With the deal not contingent on financing, why borrow more money?
"It helps us maintain maximum flexibility for any opportunities," said Brown.
Take-Two had no comment as of press time.
8:00 AM on Sat May 10 2008
by Kotaku US Edition
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