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EA Extends Take-Two Offer As FTC Continues Investigating
Posted by Leigh Alexander at 5:20 AM on July 22, 2008
It had to happen - EA has extended the expiration date for its bid to acquire Take-Two, while the Federal Trade Commission continues its investigation. Although EA recently certified its compliance with the FTC's broad-ranging request for information, the publisher reached an agreement with the FTC through which it promises not to complete any acquisition until August 21.
In that fashion, the extension is merely a formality, to allow the bid to remain outstanding until the investigation concludes. The new bid deadline is now August 18, so it's safe to assume we'll see at least one more extension at that time, since any move EA makes would need to be after the 21st.
It looks like EA has made a bit of small gain, though, as far as the likelihood of bringing the acquisition to fruition:
EA's $US 2 billion tender offer remains the same, at $US 25.74 per share. Take-Two's stock has seen a small decline in recent weeks, though, after spending several weeks trading at a somewhat higher valuation than EA's offer. Either due to the drop-off in GTA IV-related investment or due to an overall downturn in the economy, Take-Two currently trades at about $US 25 per share, apparently making EA's offer more attractive to investors.
Almost twice the number of Take-Two shares have been tendered to EA since the last bid extension — EA has now been sold 11,741,339 shares by Take-Two investors, as opposed to 6,139,824 about a month prior. This still represents only about 15% of the whole, far from the majority EA needs, but it's a sign that more investors may be ready for a sale.
Board chairman Strauss Zelnick reiterated his monthly recommendation that shareholders not tender their shares, while stating again that other, unspecified parties are interested in acquiring the company.
"We are fully engaged in a formal process to evaluate strategic alternatives that have the potential to deliver greater value than EA's inadequate offer", said Zelnick. "As part of this process, we continue to engage in meaningful discussions with multiple parties, a number of whom have been conducting due diligence. We also remain absolutely focused on executing on our strategic and business objectives".
Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
SonicNirvana
Posted 6:28 AM 22/7/08
@_Hayko: That persuasive tactic is only used when you're asking someone to leave town.
SonicNirvana
Arttemis
Posted 6:26 AM 22/7/08
@Neo-Senku: The World's Finest Pervert: Oops, didn't mean to come off like I was yelling. Sorry!
Arttemis
wild homes got the wrong bloke!
Posted 6:26 AM 22/7/08
@Nillard: That's just your mistaken perception. It hasn't been true for quite some time. Maxis is doing just fine, BioWare is fine, Pandemic is fine. Criterion are still doing excellent work.
Yes, EA isn't hitting every title out of the park, but they're no worse than any other publisher.
wild homes got the wrong bloke!
Nillard
Posted 6:17 AM 22/7/08
I really hope Take-Two doesn't let this happen. It seems anything with the EA logo slapped on it turns into failure.
Nillard
dyl604
Posted 6:12 AM 22/7/08
@dsmx: Well, I don't think being a sole publisher of sports game is monopolistic. Nothing is stopping other video game companies from making sports games.
Also the major sports leagues (NFL, NBA, NCAA, NHL, etc) giving exclusive video games rights can not be considered monopolistic either.
dyl604
dsmx
Posted 6:00 AM 22/7/08
How can the FTC be still investigating this if EA buys take 2 EA will no longer have any serious competition in the sports game market that in itself should mean the deal is not in the public interest and should stop it ever happening.
dsmx
CanaryWundaboy
Posted 5:57 AM 22/7/08
EA is fail.
CanaryWundaboy
Neo-Senku: The World's Finest Pervert
Posted 5:56 AM 22/7/08
@Neo-Senku: The World's Finest Pervert: shouldn't be that way, my mistake
Neo-Senku: The World's Finest Pervert
TheHeeyyy
Posted 5:55 AM 22/7/08
This "other interested parties" argument is sounding weaker by the minute. If there is someone else interested and they are willing to pay more for T2 than EA, announce-it and a bidding war that could result from-it can only be good for your shareholders. Unless these "other parties" show themselves soon, it's only a matter of time before EA gobbles-up T2.
TheHeeyyy
Acute Gamer
Posted 5:50 AM 22/7/08
GEEZ! EA looks like some drunk asshole in a bar who keeps hitting on the same woman, over and over again, then goes home alone. I guess that's what happens when you run out of whores (sell out devs) and still have money.
Acute Gamer
Neo-Senku: The World's Finest Pervert
Posted 5:46 AM 22/7/08
@Arttemis: Woah man I'm in agreement with you no need to yell, I'm just saying it happens in all, and it really should be that way.
Neo-Senku: The World's Finest Pervert
BryanH
Posted 5:44 AM 22/7/08
Please no, I don't want them to take away my NBA 2K or GTA.
BryanH
Arttemis
Posted 5:38 AM 22/7/08
@Neo-Senku: The World's Finest Pervert: I never said it was unique to gaming!
Arttemis
FredThePanda
Posted 5:37 AM 22/7/08
i think some of us that it's not that Take Two don't want to sell to EA, it's Take Two want more money. So its more:
EA: Let me buy you, i have lots of money...
T2: Me wants more money baby, then i love you long times
EA: I buy you now?
T2: more monies
EA: ok, i'm going to ask one more time, i buy you?
T2: more monies baaaby
EA: please?
T2: MOOOORE MONIES!!
EA: now?
FredThePanda
nip
Posted 5:37 AM 22/7/08
damn they want to kill 2k's sports division badly.lol, smh.(figure speach) Them talking away NBA 2k and the other sports games is not gonna make me purchase NBA Live. I'll do what i do with NFL 2k5 and just update my rosters every year instead of buying Madden.
nip
wild homes got the wrong bloke!
Posted 5:37 AM 22/7/08
Zelnick's fighting a losing battle. It won't be long, now. No one is coming to rescue TTWO. EA is in possession already of a voting block large enough to be a pain, so TTWO is becoming a less enticing prospect every day.
wild homes got the wrong bloke!
Neo-Senku: The World's Finest Pervert
Posted 5:33 AM 22/7/08
@Arttemis: That kind of goes with any medium for media.
Neo-Senku: The World's Finest Pervert
Foxstar Sixtail
Posted 5:33 AM 22/7/08
@Arttemis:Because till you get big and bad enough to publish and develop your own games, publishers will always be the big fish. The best you can hope for is more developers balls to drop and them to become a publisher and developer. Anyone remember when Squaresoft's publishing arm was so weak they had to inter into a partnership with EA? I do.
And don't feel so sorry for Take Two, Rockstar brought this on themselves, if it wasn't for GTA, Take Two and Rockstar would have gone the way of the dodo bird years ago. Take Two is largely incompetent. EA is not.
Foxstar Sixtail
Anaralia
Posted 5:33 AM 22/7/08
@Arttemis: Amen sir. Gaming will soon be entirely about the exact same thing everything else in this crappy little world is: money.
Anaralia
doesntlikedede
Posted 5:32 AM 22/7/08
@UkGuru: The only other "superpower" company out there is Activision/Blizzard, and the Activision side of the company is at times, worse than EA(which at one point we never thought possible!)
Man, EA's real desperate for T2. Oh the lulz...
doesntlikedede
chuffhoncho
Posted 5:31 AM 22/7/08
Somebody asked for it awhile ago, so I'm going to echo the sentiment: Where is the rust on those puzzle pieces?!?
chuffhoncho
Arttemis
Posted 5:27 AM 22/7/08
Why publishers are in so much control over the industry and not developers is a pretty obvious sign for why the state of gaming is what it is.
Arttemis
UkGuru
Posted 5:26 AM 22/7/08
I would want any other company other than EA to buy out Take2.
If it happens, thats it for those games for me as far as I'm concerned.
UkGuru
evslin
Posted 5:24 AM 22/7/08
@_Hayko: Haha no joke.
EA: How about now?
T2: Nope.
EA: How about now?
T2: Nope.
EA: How about now?
T2: Nope.
EA: How about now?
T2: Nope.
evslin
_Hayko
Posted 12:30 AM 22/7/08
EA: Now don't you fret. When we're through, we will control all of Take-Two. We can be very, _very_ persuasive.
...
...
EA: C'mon, let us buy you...
T2: No.
EA: I'll be your friend...
T2: No.
EA: Aww, you're mean...
_Hayko
Murderdolls
Posted 12:28 AM 22/7/08
Sigh...
Murderdolls
Emiat
Posted 12:25 AM 22/7/08
Can't EA drop this now? It's getting annoying hearing how EA keeps extending the deadline because they are that desperate for Take-Two.
Emiat
EvilFiek
Posted 12:25 AM 22/7/08
How often have they extended their offer so far? 1000 times?
EvilFiek
sevend
Posted 7:11 AM 22/7/08
SEGA should buy them
sevend
deferred
Posted 7:10 AM 22/7/08
I love how sooo many people write anti-EA comments, yet EA continues to sell millions of copies.
It makes me think that many of you are full of shit when it comes to what you buy.
deferred
xiked
Posted 6:59 AM 22/7/08
EA, STOP!
xiked
biggbear
Posted 6:43 AM 22/7/08
Apparently most of you did not actually read the article.
"EA has extended the expiration date for its bid to acquire Take-Two, while the Federal Trade Commission continues its investigation."
They had to extend the expiration date to allow the investigation to continue, not just because the Take-Two shareholders still haven't sold all their shares.
biggbear
antialias02
Posted 7:39 AM 22/7/08
@FredThePanda: That's a little more accurate from my perspective. Except just replace "T2" with "Zelnick". And it would be right on the money.
So to speak.
antialias02
fuchikoma
Posted 8:10 AM 22/7/08
You know, at this point I kind of with T2 could split the value of their stock and then accept EA's offer at per-share value. :p
fuchikoma
wild homes desires a pudding!
Posted 10:28 AM 22/7/08
@fuchikoma: Fuchikoma-- but the offer isn't really like that. It's just dollar amount in total. So if the did a stock split, it'd just be the same amount, at half per share.
Unless you're just joking, and then I'm an idiot. Cheers!
wild homes desires a pudding!
fuchikoma
Posted 11:30 AM 22/7/08
@wild homes desires a pudding!:
No, I just meant to say "wish" and not "with," then my comment makes sense. ^^;
fuchikoma
Foxstar Sixtail
Posted 11:43 AM 22/7/08
@sevend:Sega can't buy itself out of Sammy, much less Take Two.
Foxstar Sixtail
d4rlp3nc1l
Posted 11:34 AM 22/7/08
EA should be more concerned with getting there games out in the best shape possible. that means, getting all the bugs and glitches worked out, put more effort into creating games for this gen than last gen, and get there internal shit together, before trying to take down a rival. just imagine how much ea could do with the 2 billion internally.
d4rlp3nc1l
okenny :)
Posted 12:29 PM 22/7/08
You guys ever seen a dog with wheels for hind legs because it was so old it broke it's hips. You know the kind... their eyesight is so far gone that they miss-judge a corner and turn themselves right into the corner? These sort of dogs have a particular bark... a bark so useless that cats pray they hear it so they can ready themselves to laugh at the nearest corner. EA's take-over bids feel like this faithful old dog. God bless their souls; one day they will successfully make a bid at some value far higher then what TakeTwo will be worth at the time and tout it as an incredible victory to everyone's chagrin. They'll run across the finish like like the special kid at the Olympics where grandma is waiting with wide open arms and not realizing that the games were over hours earlier and everyones gone home.
EA, you're a joke! Come on man! Get yourself together!! Go buy Konami or something... they're looking a little famished these days.
okenny :)
Skyburnbright
Posted 2:35 PM 22/7/08
They don't give a crap about the sports division, it's Grand Theft Auto EA's after.
Skyburnbright
BryanH
Posted 3:40 PM 22/7/08
@deferred: Kotaku (and internet message boards in general) represent a small segment of the game buying public. I know a lot of neanderthal-esque men who will buy a product specifically because of the EA name on it, thinking its a seal of quality for some crazy reason. The same type of people who basically want nothing more than blood and boobs in their videogames.
Those here are usually gamers of more discriminating tastes, who expect more from their products than just a familiar name. While I do purchase certain EA products, they are by developers that I trust, such as Harmonix with Rock Band. EA as a whole though, typically churns out sub-standard games and does it quickly, with little regard for quality. Just a glance at the NCAA Football '09 debacle shows that. We don't want to see them gobble up a company known for producing quality games time after time and reduce them to the same low standards as so many other developers under their corporate umbrella.
BryanH
LostinCreationLLC
Posted 5:56 AM 22/7/08
If you want to take the power from the publishers and put it in the hands of the developers, people are going to have to get over their phobia of not having a physical copy of their purchases. Just like in the music industry, digital distribution will one day shake up the status quo.
LostinCreationLLC
Sex_For_Pandas
Posted 5:29 AM 22/7/08
You got to wonder if T2 is just trying to avoid the inevitable conclusion of a takeover. Personally If I was a stockholder I'd be trying to force out the deal by now.
Sex_For_Pandas