Variety Compares EA/T2 Takeover Bid to Hillary Clinton Campaign... We Disagree

May 20, 2008 -

Much virtual ink has been spilled over Electronic Art's protracted campaign to acquire GTA IV publisher Take-Two Interactive. In the latest news - as GamePolitics reported yesterday - EA has extended its deadline until June 16th.

Variety's Ben Fritz, who pens The Cut Scene blog, yesterday compared EA's takeover bid to the seemingly doomed presidential campaign of Sen. Hillary Clinton:

EA staying in this race is a bit like Hillary Clinton staying in it -- only a complete implosion by the opposition could result in a victory.

Although GP is on record as opposing the EA-T2 merger on the grounds that game consumers will inevitably be screwed in the deal, we couldn't disagree more with Fritz's conclusion that EA's campaign is fruitless.

The deal will almost certainly get done, just not at EA's current $25.74 offering price. We note comments made to GamePolitics by Wedbush-Morgan analyst Michael Pachter earlier this month when EA secured a one billion line of credit:

[EA] need[s] to raise around $800 million to complete the [Take-Two] deal [at $25.74]. The extra $200 million is just a cushion, although I suppose it could be construed as how much higher they’re willing to go [for Take-Two]...
 

So, EA needs about 30-33 million shares to acquire a majority stake in T2 and has an extra $200 million to spend on any price increase. That's a potential $5-6 bump, depending upon the exact number of shares. When all is said and done, look for EA to own T2 for $27-28.


Comments

Re: Variety Compares EA/T2 Takeover Bid to Hillary Clinton

I've said it before and I'll say it again:  Pachter != credible.  Just because he says the deal will be done is by no means an indication it will be.  Take-Two's shareholders have spoken and they don't want to sell to EA right now.  They're right too because GTA4 has deatroyed even Take-Two's own revenue expectations.  Pachter is wrong as often as he's right and why the gaming press continues to accept his predictions as certainty still baffles me.

Re: Variety Compares EA/T2 Takeover Bid to Hillary Clinton

I'd say he's wrong more often than he's right. Out of at least dozen stories that had comments from him, he seemed to have been wrong at least three out of four times.

Buy Stock in Take-Two

By the gods, we should be buying those shares! Think about the things Rockstar and T2 have been able to give us over the last few years (scandals notwithstanding); even if these guys don't love gamers specifically, they manage to consistently give us games that make us think they do. Isn't a company like that worth protecting, particularly from the Evil Empire? If we could seriously find a way to collectively purchase the 30-33 M shares that EA would need, WE could proactively block this move and cast our lot with the creative types.

Re: Variety Compares EA/T2 Takeover Bid to Hillary Clinton

<blockquote>So, EA needs about 30-33 million shares to acquire a majority stake in T2 and has an extra $200 million to spend on any price increase. That's a potential $5-6 bump, depending upon the exact number of shares. When all is said and done, look for EA to own T2 for $27-28.</blockquote>

Except that EA seems unwilling to part with that much money. If they aren't going to sweeten the deal now, it seems unlikely that they're going to start putting up more later.

Re: Variety Compares EA/T2 Takeover Bid to Hillary Clinton

I know that T2 will be considering their stockholders before their fans on this, but wouldn't it be amazing PR for the company if they said they were taking their fan's opnion into consideration and deciding not to sell to EA?  I know I'd sing the praises of T2 if they did.

Re: Variety Compares EA/T2 Takeover Bid to Hillary Clinton

T2 doesn't simply have to let this happen though.  They could begin buying up their stock, or some third party that's anti-merger could.  Basically the situation isn't quite as bleak as is being portrayed.

---------------------------------

So speak I, some random guy.

Re: Variety Compares EA/T2 Takeover Bid to Hillary Clinton

if EA does end up taking over T2, somehow i can see, as anonymous said, the employees will end up with the shaft.  i would guess that about half (if not more) of T2's payroll would end up getting cut.

Re: Variety Compares EA/T2 Takeover Bid to Hillary Clinton

If I were an investor I wouldn't be selling t oany company that needed or was willing to get a loan to take over a sports market.

Watching, instead of taking money away form game sales to pay it bakc, guess who's gonan pay. yep, their employees.

Re: Variety Compares EA/T2 Takeover Bid to Hillary Clinton

And look for the Federal Trade Commission to reject the takeover as an illegal monopoly of the sports video game market.

Re: Variety Compares EA/T2 Takeover Bid to Hillary Clinton

This is very disturbing news. Is there anyway GP can poke the various regulatory comittees and see what they've been thinking. This is obviously bad for the industry, and I am overly curious as to what they are thinking about the entire deal.

---- There is a limit for both politicians against video games, and video games against politicians.

 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
james_fudgesome states have "at will" employee laws10/20/2014 - 7:50am
quiknkoldIt says in the article that being in florida, you can get fired regardless if its a fireable offence10/20/2014 - 7:19am
Michael ChandraIf your employee respectfully disagrees with your advice, that's not a fireable offense. If they ignore your order, THEN you have the right to be pissed.10/20/2014 - 6:49am
Michael ChandraI... Don't get one thing. If you do not want your employee to do X, why do you tell them it's advice or a wish? Give them a damn order.10/20/2014 - 6:48am
james_fudgeA leak that had me worried about being swatted by Lizard Squad.10/20/2014 - 6:03am
james_fudgeIt should be noted that the author leaked the GJP group names online10/20/2014 - 6:03am
MechaTama31I mean, of the groups being bullied here, which of the two would you refer to collectively as "nerds"?10/19/2014 - 11:30pm
MechaTama31But that's the thing, it doesn't sound to me like he is advocating bullying, it sounds like he is accusing the SJWs of bullying the "nerds", who I can only assume refers to the GGers.10/19/2014 - 11:21pm
Andrew EisenInteresting read. Unfortunately, too vague to form an opinion on but at least now I know what faefrost was talking about in James' editorial.10/19/2014 - 10:39pm
Neo_DrKefkaBreaking GameJournoPros organized a blacklist of former Destructoid writer Allistar Pinsof for investigating fraud in IndieGoGo campaign http://blogjob.com/oneangrygamer/2014/10/gamergate-destructoid-corruption-and-ruined-careers/10/19/2014 - 8:57pm
Neo_DrKefkaOnly good thing I seen come out of the Biddle incident was the fact a professional fighter offered to give 10k to an anti bullying charity for a round in the ring with Biddle.10/19/2014 - 7:49pm
Neo_DrKefkaEven after all the interviews she is still on twitter making fun of people with disabilities (Autism) yet she is a part of the crowd that is on the so called right side of history...10/19/2014 - 7:48pm
Neo_DrKefkaWhich #GameGate supports are constantly being harassed and bullied. Brianna Wu who I told everyone she was trolling GamerGate weeks ago with her passive aggressive threats was looking for that crazy person in the crowd.10/19/2014 - 7:47pm
Neo_DrKefkaI believe the problem #GamerGate has with Sam Biddle is he is apart of this blogging group that in a way hates or detests its readers. Also being apart of the crowd that claims its on the right side of history isn't helping when he is advocating bullying10/19/2014 - 7:45pm
MechaTama31Of course, I'm looking at these tweets in isolation, I don't know a thing about the guy.10/19/2014 - 7:06pm
MechaTama31If anything, the sarcastic implication seems to be that the SJW crowd is bringing back the bullying of nerds. But it's the GGers who are out for his blood? I'm lost...10/19/2014 - 7:01pm
MechaTama31I don't really get this Sam Biddle thing. The reaction to his tweets seems to be taking them at face value, but... they're tongue in cheek. Right?10/19/2014 - 7:00pm
Andrew EisenI have it. The problem, so far as I can tell, is neither of them allow me to overlay my webcam feed or text links to my Extra-Life fundraising page.10/19/2014 - 4:08pm
quiknkoldand yes, its free10/19/2014 - 4:05pm
quiknkoldshould grab Hauppauge capture. has mic support and can upload directly to youtube10/19/2014 - 4:05pm
 

Be Heard - Contact Your Politician