Deprecated: Assigning the return value of new by reference is deprecated in /home/dark_schneidr/ on line 377
Gamer's Lounge (Presented by Darkschneidr) › Forums › Public Forums › General › EA's tumultuous Take-Two takeover bid

[x] Main Menu
 Home Community Members options Web Resources Search

[x] User Info

Welcome Anonymous


Latest: jfauifsja
New Today: 0
New Yesterday: 0
Overall: 388

People Online:
Members: 0
Visitors: 34
Total: 34
Who Is Where:
01: Event Calendar
02: Forums
03: Event Calendar
04: Event Calendar
05: Event Calendar
06: Event Calendar
07: Forums
08: Event Calendar
09: Event Calendar
10: Event Calendar
11: Event Calendar
12: Event Calendar
13: Forums
14: Event Calendar
15: Event Calendar
16: Event Calendar
17: Event Calendar
18: Event Calendar
19: Event Calendar
20: Event Calendar
21: Downloads
22: Event Calendar
23: Event Calendar
24: Event Calendar
25: Event Calendar
26: Photo Gallery
27: Event Calendar
28: Event Calendar
29: Event Calendar
30: Event Calendar
31: Event Calendar
32: Event Calendar
33: Event Calendar
34: Event Calendar

Staff Online:

No staff members are online!

EA's tumultuous Take-Two takeover bid
Post new topic   Reply to topic   Printer Friendly Page    Forum Index General

Author Message
Site Admin

Joined: Dec 31, 1969
Posts: 1702
Location: AZ

PostPost subject: EA's tumultuous Take-Two takeover bid
Posted: Mon Jan 05, 2009 2:48 pm
Reply with quote

When the year started, most game publishers were cash-flush. So cash-flush, in fact, that one decided the time was ripe to buy out another. On February 24, the world reverberated with the sound of millions of morning-coffee spit-takes as Electronic Arts announced that it wanted to buy Take-Two Interactive for $2 billion.

Speaking with GameSpot, EA CEO John Riccitiello called the $26 per share offer--a 64 percent premium over Take-Two's then-stock value--"a great deal for their shareholders." Unfortunately for said shareholders, Take-Two's board of directors dismissed the offer as "undervalued," despite analysts faulting it for being too generous.

Thus began a six-month courtship that had the game industry transfixed with every move. "Courtship" might actually be the wrong term, considering that by mid-March EA's bid had turned hostile, despite a lackluster earnings report and restless shareholders.

Chairman Strauss Zelnick and the rest of Take-Two's board staved off a takeover by convincing said shareholders that Grand Theft Auto IV's launch would turn the company's fortunes around. Sure enough, the game's launch on April 29 was the biggest of all time, generating $500 million in sales in a week.

Ironically, GTAIV's success ended up costing Take-Two shareholders hundreds of millions. After extending the offer's deadline from March to April, EA lowered its offer due to the approval of a "poison pill" measure that would dilute Take-Two's stock in the event of a takeover attempt. It kept in the game, though, re-extending the overture to May, then June, then July, then August. Alas, no deal could be made. On September 14, EA finally walked away for good, sending Take-Two's share price into a free fall. By December, it was trading at around $11 a share, less than half of EA's original offer.

Follow me on Facebook or Twitter!----

Join the Gamer Army!
Back to top
View user's profile Send e-mail Visit poster's website AIM Address MSN Messenger Yahoo Messenger Photo Gallery
Display posts from previous:   
Post new topic   Reply to topic   Printer Friendly Page    Forum Index General
Page 1 of 1
All times are GMT - 7 Hours

Jump to:  

You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
You cannot attach files in this forum
You cannot download files in this forum

Get Firefox!
The logos and trademarks used on this site are the property of their respective owners
We are not responsible for comments posted by our users, as they are the property of the poster
Interactive software released under GNU GPL, Code Credits, Privacy Policy