EA makes a play for Rockstar
Date : 03 16 2008 Category : Technology
VNUNET.COM Latest updatesIan Williams, vnunet.com, Monday 17 March 2008 at 00:00:00
$2bn cash offer resisted by Take-Two board
Video game publisher EA has re-launched an aggressive $2bn take-over bid for rival Take-Two Interactive. The company has announced a tender offer for all of the currently outstanding shares of common stock for $26.00 per share in cash, which represents a 64 per cent premium over Take-Two's closing stock price on 15 February. Take-Two owns Rockstar games, the video game developer best known for its controversial Grand Theft Auto and Manhunt series' of video games, among others. "This is a great opportunity for Take-Two shareholders," said John Riccitiello, chief executive officer of EA. "We believe Take-Two investors will see our tender offer as the best way to maximise the value of their investment in Take-Two. This tender offer provides a clear process to complete the proposed transaction." "For EA shareholders, the combination would add additional intellectual properties to our already strong portfolio and welcome Take-Two's talented creative teams to the great development organization we've built at EA." However, Take-Two's board feels very differently and is calling for stockholders to take no action in response to the unsolicited offer until it has had time to mull over the deal properly. Take-Two has said its board will review and consider EA's offer, and within 10 business days, will advise stockholders of its position regarding the offer as well as its reasons for that position. EA first expressed its interest in Take-Two last month, but has stepped up the pressure after the board rejected its advances. Unless extended, the tender offer is scheduled to expire at midnight on 11 April 2008.
