EA's Take-Two Takeover Bid on Hold Pending Government Review

June 5, 2008 -

According to Reuters, Electronic Arts has reached an agreement with the Federal Trade Commission to delay its attempt to acquire Take-Two Interactive while FTC investigators address regulatory [i.e. - monopoly] issues.

What might the FTC be looking into? Newsweek's N'Gai Croal covered this in great detail recently, including mention of my fears that consumers will suffer if EA is successful.

Cnet's Daniel Terdiman wrote yesterday "that [EA is] losing its credibility with each new extension." Frankly, however, I can't see Terdiman's point. Credibility is a non-issue here. The dollars - and government regulatory clearance - will ultimately dictate whether this deal gets done.

Meanwhile, on his Anti-Tust Commentary blog, attorney Matthew Wild offers some legal insight into the EA's strategy:

Under the agreement, EA must give the FTC 45 days’ notice of its intention to close.  Parties often grant the Antitrust Division and FTC more time to review their transactions with the hope of convincing the agencies not to challenge the merger or to allow them to negotiate a remedy.

The most important take-away here is that EA is obviously worried that the FTC may have some concerns about the deal. As a game consumer, it's reassuring to know that regulators are taking a good look at the proposed merger.

As I've pointed out before, EA's track record with the Madden franchise demonstrates that the game publisher is willing to lower prices when faced with serious competition. The Madden case also shows that EA will take agressive steps to eliminate its competition and, if successful, will raise prices in a non-competitive landscape.


Comments

Re: EA's Take-Two Takeover Bid on Hold Pending Government Review

I'm glad to see some people are relising that with this takeover EA will be killing a brilliant company and will run it dry then toss the EA-molested left overs aside. EA have had names on some games such as Crysis and Hellgate: London, but unlike some uncivilised people (not refering to anyone here) I see past the big 'EA' logo that you can never skip and look at the REAL designers of the games such as 'Flagship Studios' and 'Crytek'. Admittedly, I do enjoy C&C series, but I have a bad feeling that is going to go downhill soon. The sooner this deal is chucked into a hole and hid away from the world the better.

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SAY NO TO THE EA TAKEOVER!

Cafalump

Re: EA's Take-Two Takeover Bid on Hold Pending Government Review

Ugh.... After the whole DRM mess with Spore and Mass Effect (which I am still pissed off about to this day) EA can take a flying leap into a pit of rabid badgers. I'm just so bloody sick of EA destroying so many good companys. In otherwords, keep your dung stained hands off of Take-Two!

Re: EA's Take-Two Takeover Bid on Hold Pending Government Review

They killed Need 4 Speed. You Bastards!!!

 

As far as I care, Take-Two are gods.

Re: EA's Take-Two Takeover Bid on Hold Pending Government Review

EA bought Hell and then closed it down after interfering with its work which resulted in a sudden drop in quality and sales.

Re: EA's Take-Two Takeover Bid on Hold Pending Government Review

EA can go to hell.

 

Thats pretty much all I need to say.

Re: EA's Take-Two Takeover Bid on Hold Pending Government Review

"Cnet's Daniel Terdiman wrote yesterday "that [EA is] losing its credibility with each new extension." Frankly, however, I can't see Terdiman's point. Credibility is a non-issue here. The dollars - and government regulatory clearance - will ultimately dictate whether this deal gets done."

I do, every time EA extends it's offer after a deadline, it makes the next deadline much less credible. Thus shareholders won't be in a rush to decide to sell, and are even more likely to hold out for a better offer.

Basically EA said "Here's our offer, take it or leave it, but it expires while you wait." They've keep showing that the "expires" part is false. Now people will be expecting the "take it or leave it" part to be false as well.

Re: EA's Take-Two Takeover Bid on Hold Pending Government Review

First, EA ends up buying every video game company, then they flop and go out of business, now we will have another video game crash of 1983.

 

If EA buys T2, I will eat my hat.

Re: EA's Take-Two Takeover Bid on Hold Pending Government Review

It's entirely possible that this may be the end of EA sports domination. They gotten to the point where very real damage to the consumer is occurring and competition is not steep enough between the two parties for them to pull a Coke-Pepsi deal.

Re: EA's Take-Two Takeover Bid on Hold Pending Government Review

EA, you tried to take them over and they don't want it.  By continuing to find excuses to extend a bid they don't want, you're looking foolish.  You lost, deal with it.

Re: EA's Take-Two Takeover Bid on Hold Pending Government Review

"Indeed, we've been down this road before with EA, and it was a train wreck for gamers. Some Joystiq readers will recall the NFL 2K series from Visual Concepts. It was a very good pro football game franchise that originated on the Dreamcast but later migrated over to the PS2 and Xbox. Some reviewers actually came to prefer NFL 2K to EA's Madden series. What's more, Take Two, in a competitive effort to win market share in later years, priced it very aggressively ($19.99). Declining to go that low in price, EA was forced to reduce Madden to $29.99 just to stay competitive (there's that word again).

So what happened next? EA secured an exclusive license with the NFL and NFL Players Association. Quicker than a LaDainian Tomlinson sprint to the end zone, the NFL 2K series ceased to exist. The next edition of Madden, no longer facing competitive pressure from NFL 2K, jumped up in price to $49.99. EA's revenues, of course, shot up. Gamers, however, had to plunk down twenty bucks more than the previous year and lost the opportunity to choose their pro football game based on a competitive comparison of features and price. You either played Madden – at EA's price - or you went home."

'nuff said.
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Papa Midnight
http://www.otakutimes.com
http://www.thesupersoldiers.com

 

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Papa Midnight

Re: EA's Take-Two Takeover Bid on Hold Pending Government Review

I know I'm old but I'm sure I can't be the only person here who remembers when EA used to be THE company when it came to top class creative boundary pushing games (Filled polygons on a C64? Barely anyone else used polygons at all and none of them were FILLED!). Nowdays they're still determined to be THE company but only beccause there's no alternative.

It's especially sad given their recent drop in quality output. They got where they are by making stuff that was so good everyone bought it (and this was in the days when piracy only needed a double tape deck) but now they seem to have turned their backs on creativity entirely. It's a sad reversal, like a jedi turning to the dark side or the shop no longer stocking those biscuits you like

Re: EA's Take-Two Takeover Bid on Hold Pending Government Review

Compeition is good for consumers as it encourages lower prices and better products.

It speaks volumes that instead of improving it's product to make it more appealing they're trying to eliminate competition so they can price their half assed product how they see fit. Someone doesn't like it, they can say "You have no choice, haha!!!" which would likely actually hurt EA in the end.

And honestly ,giving all this, if I were a Take Two stock holder, I'd have decided not ot sell long ago.

-kurisu7885

 
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Kronodebate. Becaus apparently people who only post on Reddit are supposed to police twitter before they're allowed to question anything about the people involved.09/18/2014 - 10:40pm
KronoI highly doubt many, if any are using journalistic integrity as a cover for harassment. The people harassing are essentially trolls. They aren't interested in subtle. More often it's othe other way around. People use "but X is being harassed" to shut down09/18/2014 - 10:38pm
Andrew EisenAnd exacerbating everything is the fact that all the cries of ethics violations have been obnoxious and easily proven false.09/18/2014 - 8:59pm
Andrew EisenProblem is, I would imagine, the sheer number of people who are using journalistic integrity as a cover for their harassing actions or only bringing it up on the false pretense of journalistic integrity.09/18/2014 - 8:47pm
Andrew EisenHaving said that, I can certainly see how one would be frustrated if they truly just wanted to talk about journalistic integrity and someone said they were one of the people harassing Sarkeesian, Quinn and others (though I've seen no examples of that).09/18/2014 - 8:44pm
KronoThat's been the common refrain, that talk of journalism ethics is just an excuse to harass people.09/18/2014 - 8:44pm
KronoLines like "like a partial compromise with the howling trolls who’ve latched onto ‘ethics’ as the latest flag in their onslaught against evolution and inclusion." are taring everyone questioning the ethics as a harasser.09/18/2014 - 8:43pm
Andrew EisenKrono - Except, none of the articles were talking about gamers complaining about journalist ethics, let alone called them white male misogynists. They were talking about the gamers who were harassing others.09/18/2014 - 8:36pm
Kronomakes plenty of sense. It's rather hard to dismiss someone as a white guy running a sock puppet when they've posted proof they're a woman, or black, or another minority.09/18/2014 - 8:32pm
Kronothat any critics of journalists were white guys that hated women, and could be dismissed as such. It seems to have helped some. It's kind of difficult to maintain the white guy narrative in the face of a bunch of women and non-white guys. So the tag09/18/2014 - 8:32pm
Kronothat, someone vented on a #gamergate 4chan thread about being dismissed like that. The suggestion they got in return was to organize their own hashtag in response, with #NotYourShield being suggested. Thus the tag came into use to combat the undercurrent09/18/2014 - 8:32pm
Kronomuch more general problem. And while several of the articles were fairly tame, they spured a bunch of people to dismiss any critics of the journalism involved as misogynistic men. Usually with insults aimed at the geek stereotype. After about a week of09/18/2014 - 8:32pm
Andrew EisenSleaker - Not sure what that has to do with anything but yeah, the gender percentages differ depending on how the study defines what a gamer is.09/18/2014 - 8:32pm
KronoThe rhetoric pushed by the spearheading articles that the "gamers" complaining about journalist ethics were just angry white male misogynists, insulted a lot of people that were previously fairly neutral. It made it go from a Kotaku problem, to a09/18/2014 - 8:31pm
Krono@Andrew I'm not surprised overlap exists. I expect much of it is a rush to jump on the bandwagon, either by reporting on the original articles, or rushing out their own. The point is that was a major flashpoint, much bigger than the reddit mass deletion.09/18/2014 - 8:31pm
Sleaker@AE - well the gamer trend was described with stats on Factual Femenist. Only 1 in 7 males plays games 20+ hrs going into college vs 1 in 40 females. So gaming is definitely still male dominated despite fake stats trying to say otherwise.09/18/2014 - 8:30pm
Craig R.Do conspiracies ever make sense? The fact that people are now having to defend themselves against nutjob websites like Breitbart.com shows how far down into the rabbit hole we've all been forcibly dragged.09/18/2014 - 7:05pm
Michael ChandraBut when the mountain obviously exists...09/18/2014 - 5:49pm
Michael ChandraMind you, if someone makes a mountain out of a molehill with a secret agenda as motive, it'd be fine.09/18/2014 - 5:48pm
Andrew EisenOkay, so I guess I'm not making sense of #notyourshield because it doesn't make any sense.09/18/2014 - 5:28pm
 

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