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EA attempts to take over Take-Two Interactive |
Listed in: Mods, News Tags: Electronic Arts, John Riccitiello, Take-Two Interactive
Last year we reported about Electronic Arts (EA) being open to developer acquisitions. We haven't heard about it for sometime, until recently, when EA suddenly sprung into action and made a strong attempt to take over Take-Two Interactive in a form of an unsolicited proposal where EA offered to buy all Take-Two Interactive stocks for US$ 25 each.EA's John Riccitiello apparently sent a letter to Take-Two Interactive's Strauss Zelnick, expressing EA's intent to acquire and merge with the company that owns the Grand Theft Auto IP. Here's an excerpt taken from Riccitiello's first letter to Zelnick:
Further to our recent discussions, this letter is to formally express Electronic Arts Inc’s. (“EA”) interest in acquiring Take-Two Interactive Software, Inc. (“Take-Two”) and to propose a transaction in which EA would acquire all of the outstanding shares of Take-Two common stock for $25 per share payable in cash. We are confident we can consummate a transaction quickly, confidentially and on the terms proposed.
Zelnick then fired off a reply, courteously turning down EA's proposal. However, Riccitiello upped his offer in response by a dollar, offering US$ 26 per share. This increased offer was also turned down by Zelnick and Take-Two Interactive's Board. Check out Take-Two's reasons why they declined EA's offer in the following excerpt taken from Zelnick's letter:
I would like to reiterate, in the clearest possible terms, the BoardÂ’s conviction that this is not the right time for Take-Two to enter into a negotiation to sell the Company. Our organization is keenly focused on the scheduled April 29th launch of Grand Theft Auto IV, and on maximizing the value of the game to the Company and, in turn, our stockholders. It is the BoardÂ’s strongly held view that beginning strategic discussions now would distract our Company and thereby threaten the value of this key franchise.
So how would EA's attempt to take over Take-Two would turn out? Will it affect Grand Theft Auto IV's (PlayStation 3 and Xbox 360) launch? You can bet that we'll keep you posted about these turn of events. Stay tuned for updates!
Thanks to inetif for the tip!
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well kind of.
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