Wild Ride: Take Two in Play... Stock Soars... Battle Lines Drawn

February 26, 2008
With news of EA's $26 per share offer to acquire Take Two, stock in the Grand Theft Auto publisher surged on Wall Street yesterday.

TTWO finished at 26.89 on Monday, a 54% increase over Friday's closing price.

Meanwhile, Wedbush-Morgan analyst Michael Pachter writes of a new EA-T2 fight brewing: a potential EA-led shareholder coup at Take Two's annual meeting:
We also expect EA to nominate a slate of directors for approval at Take-Two’s annual meeting. We expect the nomination today, as Take-Two recently amended its by-laws to require submission of nominees no later than today.

In our view, the parallel path of friendly and hostile takeover requires EA to keep its options open, and the requirement to submit nominees by the close of business today prompted the public disclosure of their offer.

GP: We don't know the date of the T2 shareholder meeting but it is expected to take place by April 1st.

Pictured: T2 Executive Chairman Strauss Zelnick (left), EA CEO John Riccitiello (right)

Comments

Re: Wild Ride: Take Two in Play... Stock Soars... Battle ...

Wow, I've been reading most of these comments. Some very well thought out comments and intelligent people around here. I think looking back on this, we can agree that it's a good thing EA didn't get their fingers in this pie.

Register Tel Domain - Wireless Security Camera
GTA 5

@Pominator:

EA buys games that it knows will be good, then it ruins the sequels. So the fact that it *published* some very good games says nothing really, other than that they are WAY better at spotting good games than they are at making them...

Please TT, don't give GTA to EA! Please!

As I've sent on other websites; I belive that this is just stalling tactics from T2's side as they simply want more money from EA. In other words: All is well - please send more money ;) (as we don't think yours, EA's, current offer is paying us what our company, T2, is worth...)

I agree, however, that some competetion (or a lot) is best for companies making better and greater games for the good of the gaming community.

In the end, it's up to Take 2. It's been explained above, but even in the case of a hostile takeover, EA still needs board approval. They won't sell...

I hope...

With the rise in stock price will that mean EA has to offer perhaps $30 a share?

@say no to monopolies

how will objecting to the takeover or signing your petition DO anything? at most you can show it to EA's CEO and he can say "screw you I'm still doing it"

I feel that this will turn out bad for T2, which is quite sad because they are good publishers. EA is not so great of a company. They seem to rush production making their games buggy and so on. And for EA to get their hands on GTA would be devastating. Hopefully this hostle take over will not happen. The quality of good games would plumit because of EA.
Im no fan of sports games either, but this does seem like a monopoly.

so will we be seeing a GTA 2009, 2010, 2011 etc? the yearly franchise with "all new" features each yar which make no difference whatsoever?

I don't know, EA have got some rocking games under their belt, NFS, Fight night, C&C, Sims, The Godfather, Black & White- etcetera, sure we hate their sports games with a passion, but they have got some of the most kickass games known to man out there!

It's always those who deserve something the least that fight the hardest to get it.

FUCK EA! I was giving them the benefit of the doubt that they were looking to improve their development base. But it is clear that they have no interest in TT, and it is nothing more than a HOSTILE takeover attempt. FUCK them for claiming that this is in the best interest of both companies. If that was true, let that be your bargaining chip. FUCK EA! You had been making amends, and showing humility as of late, but this just set you back a decade in public relations. FUCK EA. Have I mentioned "FUCK EA" yet?

I am a fan of some of EA's games, like at one point the game freedom fighters was my all time favorite. Also Good games take time to make, You don't need to rush a sequel or whathaveyou, Especially since GTA is a great franchise. I feel that things could be dumbed down alot. I also feel that since EA is so big that GTA or other games that T2 published can be targeted easily by watchdog groups, fox news, other biased video game haters, whatever. Look at the abuse GTA took in the past? Do you really want MORE of that. Idk.. thats just an assumption, the last part anyways.

Right now EA has very few.. well "good" games that I would consider buying. The publishers have a pretty big impact on everything. Just look what bungie did. They felt breaking free from microsoft would help them because they could not really be in the environment that they wanted. And everything had to be passed through the big dogs first. Look at EA! Do you want stuff passed through them? I sure don't.

When T2 rejected the $26/share offer, saying they thought it would rise past that value after the GTA release, I certainly didn't think it'd happen quite *THAT* quickly. What the heck happened?

I have a feeling that many people will walk (or most likely get fired) if T2 is taken over. which might be better for the development teams. personally i would rather have GTAIV as the last GTA EVER, than have a shell of a game sitting on shelves year after year.

This was a neat article I found on the matter. It was just put up 22 minutes ago. It has to do with GTA mostly. I suggest reading it.

http://www.financialpost.com/trading_desk/technology/story.html?id=335770

I think the store owner of that independent video game store that they talk about in the article has a great point.

Hope you find it intresting.

@Mike: Anything in an open market is worth exactly as much as someone is willing to pay for it. Someone is willing to pay $26 a share for TT stock right now, so if you think about it, it's not all that surprising that the price of stock is now around $26 a share. People will assume that EA is offering that price because they think that's how much the stock is worth.
Thinking of it another way - say you want to sell your TT stock. You know that EA will pay $26 a share. So why would you sell it to anyone else that's offering less than that?

Also I see how EA is moving in now close to the GTA release. Mike has a good point. Im guessing that they are making an "investment" sort of. Funny though how the stocks rose over EA's offer. Im pretty sure EA will have to raise their offer in order to take over. But Im sure they wont hesitate to do that.

It'll take place on April 1st? Haha I can picture it.


TT "EA we will allow you to buy us."

EA: "Really we can!!!!!"

TT: "APRIL FOOLS YOU CAN'T GTFO!!!!!!!!!"

@Cheater87

That would be awesome!

T2: OK, here's the contract.
EA: Really? You mean it?
T2: REJECTED *pimp-slap*

XD

Doesn't Jack Thompson has shares in Take Two? 'Claiming' it was so he can have influence at their shareholding meetings? Does anyone think he'll turn up to this one?

Looking forward to a copy of Grand Theft Auto 2009 to compliment Mass Effect 2009. I can't wait for that realistic crowd to cheer me on when I'm taking out rival gansters, or exploring other planets with large advertisement symbols burnt onto their surfaces.

This is how its going to play out. EA is going to put some people in high places in Take 2 then give a better offer than $26 a share. Then Take 2 will take the deal. I see them offering $30 max $31

Any buyout offer has to be approved by the shareholders. The only thing an EA owned board can do is to get the buyout proposal to a vote. The current board agreed it wasn't good enough to get voted on by the shareholders. EA would still need to convince 51% (or whatever Take Two requires it to be) of shareholders to approve the buyout.

So an EA owned Take Two board is not an automatic approval of the buyout. Obviously if the board recommends the buyout, it would have a lot of sway with the shareholders, at least the ones who are not directly involved with running the company.

EA can, of course, go hostile, and buy a controlling interest in the company from other shareholders. Usually this will cost more than an above-the-board acquisition though.

I think EA will just end up swallowing their pride and put some more money on the table like Take Two asked.

boycott ea..boycott! teach em a lesson for HTing (Hostile Takeover) T2

EA wants to take over T2 because they can't create there own games. All the EA games I've played were licensed to well known stuff somebody else made. Examples include the Sims, Harry Potter, sports, James Bond, etc...

They have no creativity for making games.

I have a strong feeling we're about to see Rockstar pull a Blizzard North.

----
Papa Midnight

Fuck fuck fuck, don't sell out to these greedy fucks, T2.

I don’t know, EA have got some rocking games under their belt, NFS, Fight night, C&C, Sims, The Godfather, Black & White- etcetera, sure we hate their sports games with a passion, but they have got some of the most kickass games known to man out there!

Umm, they buy Kickass games - then add all sorts of retarded 'copy protection', and then corner you into buying 15 expansion packs to get the 'whole' game.

See - Blizzard does a lot better. They release a good game and some expansions - but there's enough value in the expansions to not even blink twice when buying it.

EA's "tiered video game distribution" sucks. I have the Sims 2 - while it's a decent game, every other expansion pack, I have to reinstall the whole mess. I used to keep the images of the CD's *I BOUGHT* on my hard disk, but now they are mucking with the application, whining about CD-Emulators running.

Of course, I found all this out AFTER buying Bon Voyage, the latest expansion. Since - it's still sitting, in the case, never installed because it's saying 'The Sims 2 isn't installed' - yet, it runs just fine otherwise.

So the inability of me to use CD images for convenience along with yet another hour wasted reinstalling the whole damn thing... well, pushed me over the edge.

I deal with computer issues all day, I'm just not going to deal with problems created by their paranoia.

See - the restriction on CD images is a REAL PAIN when they can't get the installer to work properly. So now, I would have to dig them all out, and use the much slower CD-Rom drive to re-install, etc.

So.. piracy concerns aside - since I actually have purchased all of these... well, EA can stick it. It's the last time I waste effort, money, and time dealing with their piracy paranoia.

Too many games out there to hassle with just one like that.

That stock is not worth more than $31 after the GTA it will go down and then take 2 share holders will be begging for a buy out from EA

Is this how EA comes up with original IP? They are so unoriginal that in order to fulfill their statements of working to create original IPs they simply buy the successful ones.

If this goes through, I honestly might give up on all EA games, whether I like them or not. I cannot, in good faith, continue to give my money to a company that buys up the competition and allows games to become moldy. If EA could develop their own IP and make successful games that are not 10-year running sequels I might feel different. I'm just so got damn tired of sequels.

EA will quite simply become another company I choose not to do business with.

Home skillet on the right looks like a young Alan Alda.

For the love of games, don't do it! EA would ruin T2. Never mind the sports monopoly and the obvious negative impact that would have. T2's adult game business would be nerfed to no end under EA.

Maybe that's why the Aussies don't think they need an 18+ rating after all? Are they rooting for EA to squash T2?

Hold out, Zelnick! Hold out!

Remember they tried and FAILED to aquire UBI. Hopefully this will turn out the same way.

Given someone listed all the EA "goodness" already and that some question the validity of many gamers issues with EA it is worth a look at EA track record of M&As. Luckily for me and you, someone has already done the homework. So here is EA's score card.

== Note dont read anymore if you get sick easy ==

Studios Opened or Acquired^

* 1998: EA Tiburon in Maitland, Florida
* 1999: EA Canada in Burnaby, British Columbia
* 2000: EA Los Angeles in Los Angeles, California
* 2002: EA Black Box in Vancouver, British Columbia
* 2004: Criterion Software in Guildford, United Kingdom
* 2004: Digital Illusions CE in Stockholm, Sweden
* 2004: EA China in Shanghai, China
* 2004: EA Montreal in Montreal, Quebec
* 2005: EA Mobile
* 2005: EA Redwood Shores in Redwood City, California
* 2005: EA Singapore
* 2006: EA Mobile India, Hyderabad, India
* 2006: EA Mythic in Fairfax, Virginia
* 2006: EA Phenomic in Ingelheim, Germany
* 2006: EA Salt Lake in Bountiful, Utah (Formerly Headgate Studios)
* 2007: EA Casual Entertainment
* 2007: EIS (European Integration Studio) in Madrid, Spain
* 2007: BioWare Corp. in Edmonton, Alberta, Canada and Austin, Texas
* 2007: Pandemic Studios in Los Angeles, California and Brisbane, Queensland, Australia
* 2007: EA UK, relocated to Guildford from Chertsey
* 2008: EA Korea in Seoul, South Korea
* 2008: EA Studio in Bucharest, Romania


Studios Closed

* 1998: Original HQ in San Mateo, California - moved to Redwood City
* 2000: EA Baltimore in Baltimore, Maryland - established in 1996 as part of Origin
* 2001: Kesmai (known also as GameStorm); acquired in 1999
* 2001: Bullfrog Productions in Surrey, England - acquired in 1995
* 2002: EA Seattle in Seattle, Washington - formerly Manley & Associates, acquired in 1996
* 2003: Westwood Studios in Las Vegas, Nevada - acquired in 1998
* 2003: EA Pacific (known for a time as Westwood Pacific) in Irvine, California - formerly part of Virgin Interactive, acquired with Westwood in 1998
* 2004: Origin Systems in Austin, Texas - acquired in 1992
* 2004: Maxis in Walnut Creek, California - acquired in 1997, moved to Redwood City
* 2006: DICE Canada in London, Ontario (created Battlefield 2: Special Forces expansion, Battlefield Vietnam, and all BF2 patches). Acquired DICE fully October 2, 2006; closed DICE Canada studio hours later.
* 2007: EA Japan in Tokyo, Japan - closed due to consolidation; moved under EA Partners model
* 2007: EA UK in Chertsey, United Kingdom, relocated to Guildford
* 2007: EA Chicago in Chicago, Illinois. Closed due to failure to meet profit targets.

^From an article on Ars with source from CNG

Spartan: loving the list. I can't stand how not only do they take over, then shut down, they even will rename the company to EA . Will they change the name of TT to EA 2, or maybe Electronic Star studios..... or maybe they'll just pull another DICE, and shut down hours later.

Jonnyboy
2K is a BAD pub as bad as activision or EA..... look how long ti took them to get a patch for Bioshock PC and even then tis still not fixed.....
===================

how much with the TTwo stock jump when GTA4 hits I wonder.

Anybody know how I can file a monopoly complaint against EA?

Father Time
Wouldn't do any good when half of US companies are monopolies and some are sanctioned by the government and get kick backs from the regulatory fees(Comcast).

@ Father Time

The government doesn't give a shit about videogames. They recently tried to keep Whole Foods from buying Wild Oats because that would supposedly create a monopoly. Know why they don't do the same for videogames? Because they don't give a fuck.

To the government, videogames are just a way for candidates to get more votes when they play the "I'll protect your kids from the evils of violent videogames".

well i gotta say when the govenrment got involved in "michigan bell" its basically been screwed up ever since, so there might be a bit of "we dont know how to fix this best stay out of it"

@Father Time

They can't be a monopoly whilst there's other players in the market. Once Ubi, Take Two, Codemasters, THQ & Microsoft get assimilated into the EA collective then perhaps a monopoly claim would be justified but until then they're another corporation.

@Benji: Sorry for the delay in replying, as this seems like a neat discussion to get a bit deeper into. I get what you were saying about it being worth what someone is willing to pay. That's a very good point. The stock price rising that quickly still seems extremely speculative to me, now that that particular offer is off the table. Granted, you can read desperation into EA's two bids and dire warnings of "you may never get a bid this good again", but if the acquisition doesn't materialize (as every rabid gamer seems to hope for), what happens then? Is the GTA release going to bring in enough money to justify that huge increase in stock value?

Or am I just reading this from an overly risk-averse perspective on investment?

If you would like to let Take-Two know, that you don't want them to sell out to EA, sign this petition:

http://www.petitiononline.com/t2ea000/petition.html

Even though a hostile takeover might occur sign the follwoing petition,
object to the takeover!

http://www.petitiononline.com/t2ea000/petition.html

@say no to monopolies

I hate to be the one to tell you, but online petitions rarely ever accomplish anything.

@Father Time

have online petitions EVER worked? since you can' spam them with dialup accounts.

I still think that the only reason anyone tries online petitions is because of that letter writing campaign that got star trek renewed for a 3rd season. Its the one and only incident I have heard of where a company changed its plan based on community input. If that didn't happen I'd bet that noone would have made petitions online.

EA is not a monopoly. In fact, Activision Blizzard's the bigger piece of the pie and they're in more hot water than EA is. Activision has a few lawsuits they're actively dealing with, as well as the Activision PR snafu with peripheral rights when EA offered a Rock Band patch for PS3.

But then again, people like to point fingers at what's familiar to them, despite all the good that's come out of EA the past year, as well as how well EA DICE and EA Mythic are faring after their full integration into the company.

Melissa
depends on your definition of monopoly, for me its any company thats gotten to big for itself.

EA,Microsoft,Comcast, sony to a lesser extent I can think of a few others.

Online petitions do work. Just look at DVD releases :D I helped get Titus on DVD :p.
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
ConsterTPB works fine for me (didn't work the day of the verdict). Apparently they switched IP addresses, meaning Brein has to re-sue to have that added to the block-this list?05/22/2012 - 8:16pm
ZippyDSMleesigh...was playing anice game of empire at war and then boom crash...hope new oparts come soon ><05/22/2012 - 1:17pm
Andrew EisenI still say the particular word or phrase the MPAA uses to describe what it's fighting against is the least of its problems.05/22/2012 - 1:12pm
ZippyDSMleeMPAA finally admits piracy is not the same as stealing, kinda http://tinyurl.com/chtcf8p05/22/2012 - 11:55am
ddrfr33k@EZK Bwahahaha! @Michael: Yeah, several news sources have said that google DNS can bypass the TPB roadblocks.05/22/2012 - 11:38am
Michael ChandraWeird, I can still visit piratebay. Wonder if Google DNS is related to that, or I simply have an exotic ISP?05/22/2012 - 9:03am
Lisa PhamNo harm done, E. Zachary Knight. :)05/22/2012 - 4:50am
Uncharted NESBSA Claims Half of PC Users Are Pirates- http://slashdot.org/palm/17/12/05/22/0051216_1.shtml05/21/2012 - 11:18pm
E. Zachary KnightAh. Missed that. My mind just connected DDR3 with ddrfr33k and ran with it. Oh well.05/21/2012 - 10:12pm
Lisa PhamHe also mentioned the game "Shadows of the damned" which is on PS305/21/2012 - 8:08pm
E. Zachary Knightddrf33k, I think Zip is referring to computer hardware.05/21/2012 - 7:33pm
ddrfr33k@Zip: Excellent game. It's a trip.05/21/2012 - 7:09pm
Lisa PhamIanC - if you read/looked at the report (PDF and written) then you'd see where they failed and why. Some games have come close to passing and some have passed. The list of games evaluated. http://www.reclaimyourgame.com/content.php/18-RYG-Evaluations05/21/2012 - 5:49pm
Andrew EisenMaybe I'll luck out and the Wii version won't have this retail exclusive DLC nonsense.05/21/2012 - 5:12pm
ZippyDSMleeBought new guitar...trying to find a nice DDR3/mobo combo under 200$ sicne I need new ram thats 100$....fun times..... picked up shadows of the damned tho!!05/21/2012 - 4:56pm
E. Zachary KnightYeah, that's how I feel about retail exclusive DLC too. ;)05/21/2012 - 3:37pm
RedMageThat's what I started to figure too. They seem to have trouble coming up with an effective scare tactic. At one point they referred to it as "online looting" which just sounds stupid.05/21/2012 - 3:34pm
E. Zachary KnightOf all the sucky suckiness that ever sucked. Lego Batman 2 will suffer from sucky retailer exclusive DLC. Suck! http://tinyurl.com/ckq67vg05/21/2012 - 3:30pm
E. Zachary KnightAs for Dodd, I think it is mostly that he realizes that calling copyright infringement "theft" is bad for PR and that they need to change tactics. Just like how they went from using "piracy" to using "theft."05/21/2012 - 1:48pm
E. Zachary KnightIan, I think in this case, the rating is well deserved. To get a good rating, I would assume that a company would have to release the game with no DRM, or at least fully disclosed DRM.05/21/2012 - 1:46pm

Be Heard - Contact Your Politician