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
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!
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.
I hope...
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"
Im no fan of sports games either, but this does seem like a monopoly.
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!
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.
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?
TT "EA we will allow you to buy us."
EA: "Really we can!!!!!"
TT: "APRIL FOOLS YOU CAN'T GTFO!!!!!!!!!"
That would be awesome!
T2: OK, here's the contract.
EA: Really? You mean it?
T2: REJECTED *pimp-slap*
XD
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.
They have no creativity for making games.
----
Papa Midnight
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.
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.
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!
== 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
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.....
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how much with the TTwo stock jump when GTA4 hits I wonder.
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).
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".
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.
Or am I just reading this from an overly risk-averse perspective on investment?
http://www.petitiononline.com/t2ea000/petition.html
object to the takeover!
http://www.petitiononline.com/t2ea000/petition.html
I hate to be the one to tell you, but online petitions rarely ever accomplish anything.
have online petitions EVER worked? since you can' spam them with dialup accounts.
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.
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.