EA's Take-Two Call Outlines Potential of Deal

We've written quite a bit in the past day about Electronic Arts offer to buy out Take-Two, so some of you might be getting sick of the churn, but I think it's worth pointing out that EA did a call early this morning to reiterate their position on this whole thing.

While most of the call repeated what John Riccitiello told us in an interview on Sunday, they also had Warren Jenson, EA's Chief Financial and Administrative Officer, on the line to talk about the potential impact the purchase might have on both companies. It's quite interesting, delving into the possible future of Take-Two's IPs and such.

As we already knew, this offer actually started with talks back in December and included a slightly smaller offer before coming to a head over the weekend. Jenson also reiterated just how good a deal it will be to Take-Two shareholders, pointing out that EA believes that pretty soon no one, not even EA, will be willing to pay this much for the company.

But the most interesting part of the call seems to come when Jenson outlines why the deal is a winner for EA.

• There is significant opportunity to drive operational synergies. We would expect synergies in the corporate and publishing organisations.
• We can help increase the sales of Take-Two's titles and bring their IP to new platforms - by leveraging EA's global packaged goods, online and wireless organisations.
• We would add incredible talent to EA's creative team. This deal brings together a wealth of industry talent - which can blossom under our decentralised label structure.

So the way I read that, it's two pluses and one minus. On the positive side, as Fahey already pointed out, EA could perhaps blend some of the two companies franchises to create some really interesting titles. They could also perhaps get some very talented people to work on other label's games. Both have some interesting potential.

Then they drop the leveraging bomb. Was it really necessary to point out the possibility of great games like Grand Theft Auto and BioShock going mobile? (Yes, I know there's already a BioShock cell game, but it's still depressing to think about.)

Final Call Script [EA Take 2]

Our previous coverage:
EA CEO/ Take-Two Chairman Talk Take Over Bid
The Take-Two Letters: EA Rejected
EA or Not EA: The Take Two Question
Take-Two Stock Jumps 47% In Wake Of EA Proposal


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