industry news
EA Goes Dark Over Take-Two Bid
Posted by Kotaku US Edition at 8:20 AM on August 26, 2008
Like a corporate ninja, Electronic Arts has hurled a flash bomb and vanished into the shadows with Take-Two Interactive bundled under its cloak.
Umm. Do Ninjas wear cloaks? Perhaps the metaphor breaks down a bit at that point.
No matter - the point is that EA has entered into a confidentiality agreement with Take-Two and both parties are now obliged to keep their lips tightly zipped with regard to the companies ongoing discussions.
Following the FTC's announcement last week that they would not oppose any merger, EA decided not to renew the formal bid and has been having some cosy chats with its new friends at Take-Two.
Cosy chats that from now on we will not be party to. Bah.
EA: We Might Be Talking To Take-Two, We Might Not. But We're Not Talking About It Publicly Anymore [Sillicon Alley Insider]

Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
antisniper
Posted 9:13 AM 26/8/08
Bottom liner is money. EA seems to be good at making money, at least with quality games nowadays. Good for them. T2 also wants to make money. If merging with EA makes money, they'll merge. I mean, who doesn't want money. If you had a chance to earn double your initial investment in a company, wouldn't you?
antisniper
boringjob2
Posted 9:11 AM 26/8/08
@ReadNLearn: See your analogy works for now.
He's saying if this continues.
I totally agree with his sentiment. Actually I agree with yours too since he's talking future and you are talking now.
boringjob2
ReadNLearn
Posted 9:04 AM 26/8/08
@BigDragon: "I don't want to see the day where gaming turns into the cable-provider or telecomm oligopolies of today."
I think a better comparison is probably the movie industry. There are many studios big and small, and I think there always will be with gaming as well. There are many niches. Some people prefer only AAA big-budget games from major companies. Other people prefer indy type games with smaller budgets that maybe cost less. I'm very confident that as smaller companies get bought or dissolve it will create a vacuum that will be filled with new players. Where there is demand a supply will appear over time.
ReadNLearn
antisniper
Posted 9:03 AM 26/8/08
I don't think EA will screw around with T2. Their recent example of Bioware, letting it run by itself, with money funding from EA is probably the best improvement they've made.
Riccitiello seems to understand that people hated EA for buying out studios and killing them. With what they've done recently, they haven't broken any up. Maxis is one of the best examples I can think of. Maxis has been with EA since 1997, and its still alive and kicking.
Given that the lineup EA has shown us, with Spore released next week (4th in Australia), RA3, Mirrors Edge, Dead Space, and what they've released this year, I don't think they're the evil empire. I going to target Activision.
antisniper
EmpressInYellow
Posted 9:01 AM 26/8/08
@boringjob2: I'm not sure the EA Sports line is necessarily representative of the company as a whole. Also, change doesn't happen overnight. There are some rumblings that indicate they may be changing things up a little even in the "yearly installment of X sports game" arena.
EmpressInYellow
DukeOfPwn
Posted 9:01 AM 26/8/08
Oh, sure. EA's evil, right? So evil and mediocre that they're making games like Mirror's Edge and Spore?
DukeOfPwn
Tiejen
Posted 8:59 AM 26/8/08
@Aaron-173:
LOL
Tiejen
Aaron-173
Posted 8:58 AM 26/8/08
@Tiejen:
+ Watch video
I'd take this to be something of a 'merger' in the works...
Aaron-173
BigDragon
Posted 8:57 AM 26/8/08
Mergers really should be banned. I want to see more competition in the gaming entertainment arena, not less. I don't want to see the day where gaming turns into the cable-provider or telecomm oligopolies of today. I would hope that T2 would stay separate from EA, but their shareholders would eat them alive for it just like what happened with Yahoo and Microsoft. The shareholders want to make a quick buck and it doesn't matter who gets ran over in the process.
BigDragon
mva5580
Posted 8:56 AM 26/8/08
Looks like this whole thing may be coming to a head. It's only a matter of time.
And hey EA Sports, got an idea for you: Instead of just taking 2K Sports and totally dissolving it, how about you instruct the 2K people to STRICTLY work on PC Sports games? Then you can truly have the market on all platforms: EA Sports takes care of consoles, and 2K makes the PC sports games. Then we can all still play the 2K line if we really want to, since obviously everyone has a PC. This would also allow for the return of NFL2K, as obviously they would be under Electronic Arts and could thus make NFL games again.
What say you to that.
mva5580
boringjob2
Posted 8:55 AM 26/8/08
@EmpressInYellow: I think it's just lip service.
I mean Madden, Ncaa football, NBA live, et al are still just rehash after rehash.
I might be bitter because NCAA used to be my favorite sports game. But the "next gen" offerings have been absolute shit and this years is one of the most broken games I've ever played in my (nearly) 30 years on this planet.
That's why the only EA game I've actually spent money on in a while was this year's NCAA.
I know its part my fault for believing reviews that this game had actually improved from the past few. Should have known that they really didn't preview it in any meaningful form. Took me 5 minutes to see kickoffs and player speed and defense were all fucked. Not borked.
And They didn't even try with Madden. The goddamn games was gold in June.
boringjob2
Bone Structure
Posted 8:55 AM 26/8/08
"Newmans Catalogue", has confirmed rougly 7 sects of Ninjae (plural) that do infact, wear cloaks. They are the following:
* New Transient
* Groin East
* Joint Custody Sect
* The Jam (Atleast 12 congressmen belong to this sect)
* Birthcare
* Associates for Maternal Jutsu and other Pre-Natal Ninja affairs (AMJ-PNA)
* Focus On the Family through Advanced Jutsu and Education (Shortened: FFJE)
Bone Structure
Tiejen
Posted 8:53 AM 26/8/08
I would take this to be something of a 'merger' in the works. Where there's smoke there's fire kind of thing - there are many reasons ERTS and TTWO would want to keep a lid on things until they're ready to go public. The fact that they both entered the agreement - voluntarily - I would take as tangible evidence some kind of deal is already agreed upon, they just need to hammer out the details.
Tiejen
Aaron-173
Posted 8:52 AM 26/8/08
They're going off the grid while they power up the money cannons. Helmets on, boys. Prepare for impact.
Aaron-173
Nirolak
Posted 8:51 AM 26/8/08
@Does Not Equal (ダズノット): Great, then we can play Petz Niko Bellicz and Imagine! Little Sister.
Nirolak
GOLD5
Posted 8:51 AM 26/8/08
I actually live beneath Take2 and they kept me up all last night with their moaning and knocking stuff over.
GOLD5
antisniper
Posted 8:50 AM 26/8/08
If T2 didn't take the offer from EA, the shareholders, the real owners of the company, would slaughter them alive. Their share price nearly doubled since EA's offer, and if they didn't get merged into EA, the price will drop, and you can bet those shareholders aren't happy.
antisniper
Mike918
Posted 8:49 AM 26/8/08
But that tiger woods commercial looks cool...maybe EA isn't that evil...no wait it's a TRAP!
Mike918
Nirolak
Posted 8:49 AM 26/8/08
@SlashZaku: Actually L.A. Noire is not a PS3 exclusive: [kotaku.com]
But yeah, it'd not only net them Rockstar, but also Firaxis, the 2K teams (like 2K Boston/Australian, 2K Marin, and 2K Cheq), and a publishing agreement with Bethesda. Also Carnival games would probably be a nice addition for their casual line-up amusingly enough.
Nirolak
Does Not Equal (ダズノット)
Posted 8:45 AM 26/8/08
Gah. If Take Two has to go with somebody else, why not the aforementioned Ubisoft?
U-bi-soft! U-bi-soft! EVeryone together, now! U-bi-soft! U-bi-soft!
Does Not Equal (ダズノット)
ReadNLearn
Posted 8:44 AM 26/8/08
@excaliburps: "What the?! So does this mean Take-Two is now considering EA's offer?"
What makes you think they weren't considering all along? Strauss and company came in as corporate repair guys. They are essentially there to polish up the company and get it ready to sell. Everything between when the board was booted and now has been posturing. At least, that's how I've interpreted events.
ReadNLearn
SlashZaku
Posted 8:38 AM 26/8/08
Well, if it does happen, EA would have the sports genre under it's thumb outside of Sony's MLB and NBA, Konami's PES, and I think SEGA's Virtua Tennis (might be missing some). In other words, Take-2 would be handing the genre over to EA (hence why I'm guessing they said the offer was too 'low'). Not to mention the other biggie of such a deal: Rockstar Games. Grand Theft Auto, Midnight Club, Bully, Manhunt, etc. and Rockstar also has 2 (I think) PS3 exclusives on the map (L.A. Noire being one).
I guess we can only wait to see what terms they come to if any...
SlashZaku
EmpressInYellow
Posted 8:35 AM 26/8/08
@boringjob2: Except that all (or most) of the current signs indicate that EA has undergone a pretty major shift. We've got the company producing a bunch of (surprisingly interesting) new IP instead of the usual sequels and licensed cash-ins. We've got the partners program, which has received pretty glowing endorsements from companies that really don't have any obligation to praise EA, such as id. Riccitiello seems like he's...surprisingly clued in to how EA has been perceived in the past and how that needs to change.
For my own part, I'm not a big fan of all of the consolidation in the industry. Even so, there's some small part of me that wouldn't mind seeing the System Shock license and Ken Levine/2k together...
EmpressInYellow
soulmonarch
Posted 8:35 AM 26/8/08
EA is like the freakin' Borg.
Please, someone stop them!
soulmonarch
Ad-hominem
Posted 8:32 AM 26/8/08
@boringjob2: Yes. EA deserves it.
I mean "Sony is the Evil Empire", "Microsoft is the Evil Empire" and "Wii is shit" aren't as valid as "EA is the evil Empire!"
They're completely different. The Console ones are just idiotic fanboy speech, while the insults against EA are so well thought out and intelligent.
Ad-hominem
boringjob2
Posted 8:28 AM 26/8/08
@excaliburps: I agree on ME & DS.
boringjob2
boringjob2
Posted 8:27 AM 26/8/08
@Ad-hominem: Because EA really deserves it? And all that Ea-bashing is based on factual reporting, not the normal fanboy drivel.
I'd like to think that my tip helped get this up and my account finally able to post.
Maybe T2 will be part of this "New EA" revealed last year that really hasn't shown up yet?
boringjob2
excaliburps
Posted 8:27 AM 26/8/08
What the?! So does this mean Take-Two is now considering EA's offer?
I just hate the only one company that releases sports games might be bought up by its competitors. Thereby eliminating said competitors and then there's the big chance of dwelling in mediocrity because there's no competition.
@ezcheezbandit: In EA's defense, Mirror's Edge and Dead Space looks like they're going to be fun...
excaliburps
Ad-hominem
Posted 8:25 AM 26/8/08
Well, now it's confirmed!
Take-Two will be part of EA within 6 months.
@ezcheezbandit: Why is it Ps3, 360 and Wii bashing are all banned as absurd, but this kind of garbage against EA is still allowed?
Ad-hominem
CanaryWundaboy
Posted 8:24 AM 26/8/08
EA = Darth Vader of Video Games.
Dont care what anybody else says, they're EVIL.
EVIL I SAY!
CanaryWundaboy
ezcheezbandit
Posted 8:22 AM 26/8/08
Don't do it Take Two! Resist the corporate mediocrity machine that is EA.
ezcheezbandit
cihx
Posted 9:42 AM 26/8/08
yay next year to get all the mouth breathers money they will announce
John Madden Presenst:An Abercrombie production: Grand Theft Auto '10:featuring Lil' Wayne
or something like that.
cihx
NYKnicker
Posted 9:32 AM 26/8/08
Take-Two probably won't be able to resist EA bid to much longer.
NYKnicker
HoxtonHero
Posted 9:18 AM 26/8/08
@Aaron-173:
lol, that sums it up nicely!
HoxtonHero
nitromic
Posted 10:11 AM 26/8/08
I still think this is a bad idea. EA really doesn't need to be bigger than they are and T2 was always better as a seperate entity. Money talks though and that is what seems to drive the industry these days.
nitromic
kylo4
Posted 11:41 AM 26/8/08
Take Two's been rejecting them like an old girlfriend-To steal a terribly bad line from EA Sports' NHL 2003.
kylo4
Does Not Equal (ダズノット)
Posted 11:31 AM 26/8/08
@Nirolak: I somehow doubt that. Ubi keeps their casuals separate from their cores.
Does Not Equal (ダズノット)
liqideos
Posted 11:30 AM 26/8/08
@antisniper: EA has been good at two things: Selling Madden, and buying other companies.
But now we are the point where EA is no longer good at the latter, as companies like Ubi and Take 2 are refusing to assimilate. This could be the only reason why BioWare/Pandemic went into the deal with EA wearing the pants in the relationship.
This just seems forced and comes off like EA is trying to prove it can still win the pissing contest with Activision. Although I don't see why EA doesn't just go pick up all the just-about-guaranteed million plus selling games Activision has been dropping in recent weeks. It seems like an easier route with more immediate impact to the bottom-line.
Picking up the GhostBusters, Brutal Legend, 50 Cent, and Scarface games makes perfect sense to me. Ghostbusters fits into the family appeal, Brutal Legend songs could be released on Rock Band 2, and Scarface would go hand in hand with the Godfather license in the portfolio. And 50 cent still sold a million plus units with little regard to actually making the game playable. So I don't see how people at EA can't see the sales figures and potential that these would immediately make. And it would give them the positive public image in that case picking up dropped licenses.
They are in dire need of consultants at EA methinks.
liqideos
Murdoc
Posted 11:59 AM 26/8/08
Actually Take Two hasn't been rejecting them like an old girlfriend, they've gussying up ready to put out so they can get more presents from EA.
Murdoc
d4rlp3nc1l
Posted 12:33 PM 26/8/08
BEFORE-SPORTS:
Take2:
All-Pro Football
Boxing
College Hoops
NBA
Tennis
MLB
NHL
EA:
Boxing
Golf
Nascar
NBA
NCAA Football
NCAA Basketball
NFL
NHL
Soccer
Others:
Soccer
Tennis
Baseball (Sony)
NBA Ballers
After EATake2 Merger:
Boxing
Golf
MLB
Nascar
NBA
NCAA Football
NCAA Basketball
NFL
NHL
Soccer
Tennis
Others:
Baseball (Sony)
NBA Ballers
Soccer
Tennis
Sum:Were going to be totally fucked. "Thanks for stoping, and have a great day."
d4rlp3nc1l
Spiderbait
Posted 12:49 PM 26/8/08
I feel like I have been standing next to two persons, eavesdropping on their conversation, and they have just noticed and shoved off.
Spiderbait
ReadNLearn
Posted 1:39 PM 26/8/08
@boringjob2: "See your analogy works for now. He's saying if this continues."
Point taken, but I believe my analogy will hold for long-term. I think there will always be a demand for various niches; over time new companies of varying sizes will always come to fill in the gaps created by others being bought or going out of business.
@Murdoc: I think you nailed it.
ReadNLearn
Tarislar
Posted 4:35 PM 26/8/08
If you don't like EA and you don't want to see crap like this keep happening, it's simple. Just don't buy their games. How hard is that?
Unfortunately it won't happen. People will cry and moan about them and still go out and drop their cash on the latest EA game.
Tarislar
joeloliol
Posted 9:41 PM 26/8/08
having a name like ROCKSTAR just won't feel as rockstar-y if you know they are actually an EA company. at least, thats what i imagine.
they are hardly a small company, but it would feel like they sold-out, you know?
that said, they aren't a band, they're not your friend, they're a company. and companies do business. so, if the money makes sense for them, they'll probably do it.
just EA better give them total freedom, if it happens. i'm always suspicious of the limitations and the control that conglomerate companies place on their acquired companies. i mean, what if Rockstar wanted to include something risky and controvercial in their next GTA, but EA decides, no, that doesn't fit with EA policy, and we dont need the bad press right now, so too bad.
well.. fuck that.
joeloliol
Fetus_God_of_Love
Posted 9:51 PM 26/8/08
Garbage! I haven't bought a EA game in forever and that won't change anytime soon.
Fetus_God_of_Love
doodleschmidt
Posted 12:22 AM 27/8/08
If this happens it will be the darkest day I've ever seen in gaming history and I've been there almost from the beginning. Please, please don't let EA devour take two. I'm begging you.
doodleschmidt
JAGJEET
Posted 10:02 AM 26/8/08
@Aaron-173: Ahaha. Brilliant.
JAGJEET