EA Declines To Extend Take-Two Bid Deadline - Blizzard Sector

**NewsDude** · 08-18-2008, 09:50 PM

The Electronic Arts, Take-Two Interactive Software acquisition drama continues as the mammoth video-game publisher said it won't extend a Monday deadline for its $2 billion offer to buy Take-Two, maker of the Grand Theft Auto franchise series.
It may not be as dramatic as the Microsoft and Yahoo story, but EA and Take-Two have danced a few rounds -- and they apparently aren't done dancing.
Take-Two on Monday confirmed that it expects to sign a confidentiality agreement with EA that allows the gaming giant to enter into Take-Two's formal process to evaluate strategic alternatives. Take-Two said it is keeping lines of communication with EA open as part of a process to "maximize value" for its stockholders.
Take Two: We Want More
"We welcome EA into our formal process and look forward to demonstrating to their board the significant strides made by Take-Two since they last undertook a detailed review of our business in early 2007," said Strauss Zelnick, chairman of Take-Two. "Our board remains unwavering in its belief that EA's unsolicited conditional tender offer of $25.74 per share was inadequate and undervalued Take-Two's world-class entertainment franchises and our strong operational and financial performance."
Headquartered in New York City, Take-Two publishes and develops products through several of its labels, including Rockstar Games, 2K Games, 2K Sports, and 2K Play. The company is perhaps best known for its Grand Theft Auto series, but also has such hits as BioShock. EA isn't willing to call it quits on the deal, but agreeing on a price is the challenge.
Agreeing on a Price
"This deal comes down to leverage and agreeing on a price. At least for the moment, EA doesn't have a lot of leverage over Take-Two, and Take-Two doesn't like the price EA has offered," said Mike Goodman, an analyst at The Yankee Group. "Take-Two is flying high right...

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08-18-2008, 09:50 PM	#1 (permalink)
NewsDude Status: *** Elder Join Date: Mar 2008 Location: News Office Posts: 1,884** Tournaments Joined: 0 Tournament Wins: 0 Spent time on board: 0:05:24 Hours Rep Power: 4	The Electronic Arts, Take-Two Interactive Software acquisition drama continues as the mammoth video-game publisher said it won't extend a Monday deadline for its $2 billion offer to buy Take-Two, maker of the Grand Theft Auto franchise series. It may not be as dramatic as the Microsoft and Yahoo story, but EA and Take-Two have danced a few rounds -- and they apparently aren't done dancing. Take-Two on Monday confirmed that it expects to sign a confidentiality agreement with EA that allows the gaming giant to enter into Take-Two's formal process to evaluate strategic alternatives. Take-Two said it is keeping lines of communication with EA open as part of a process to "maximize value" for its stockholders. Take Two: We Want More "We welcome EA into our formal process and look forward to demonstrating to their board the significant strides made by Take-Two since they last undertook a detailed review of our business in early 2007," said Strauss Zelnick, chairman of Take-Two. "Our board remains unwavering in its belief that EA's unsolicited conditional tender offer of $25.74 per share was inadequate and undervalued Take-Two's world-class entertainment franchises and our strong operational and financial performance." Headquartered in New York City, Take-Two publishes and develops products through several of its labels, including Rockstar Games, 2K Games, 2K Sports, and 2K Play. The company is perhaps best known for its Grand Theft Auto series, but also has such hits as BioShock. EA isn't willing to call it quits on the deal, but agreeing on a price is the challenge. Agreeing on a Price "This deal comes down to leverage and agreeing on a price. At least for the moment, EA doesn't have a lot of leverage over Take-Two, and Take-Two doesn't like the price EA has offered," said Mike Goodman, an analyst at The Yankee Group. "Take-Two is flying high right... More...