Today is the deadline for shareholders of Grand Theft Auto IV publisher Take Two Interactive to accept Electronic Art’s tender offer of $25.74.
So, will the deal get done?
Probably not – at least not today. Forbes speculates that EA will extend its deadline. Adding a little sweetener to the offer wouldn’t hurt, either.
Oft-quoted Wedbush-Morgan analyst told Forbes that EA screwed up by making its initial offer too high:
Wedbush Morgan analyst Michael Pachter believes Electronic Arts started by offering too much for the company. EA could have started its bidding at $22 a share, or $1.7 billion…
By publicly starting at $26, then a rich 52% premium, EA must have figured Take-Two would jump at the offer. Zelnick Media was, after all, brought on in 2007 to turn around the faltering Take-Two. Instead, Zelnick stonewalled. "EA didn’t know how to react," says Pachter.
Meanwhile, analyst Colin Sebastian told the San Francisco Chronicle:
I think it’s more than likely the deal gets hammered out. Maybe it happens at a slightly higher price, but it’s good for shareholders.