As expected, Electronic Arts has once again extended its deadline for Take-Two Interactive stockholders to tender their shares at $25.74. The new deadline is August 18th.
EA is apparently beginning to make some progress in its bid to acquire T2. The game publisher says that 11,741,339 shares have been tendered under the offer, nearly double the amount turned in when the previous deadline expired in late June. That is almost certainly related to T2's sagging share price of late. The stock has been trading below EA's offer price, making the deal more attractive to shareholders. TTWO closed on Friday at 25.04
This morning's EA press release links the extension to the Federal Trade Commission's review of potential anti-trust implications:
Extending the tender offer allows the FTC review process to continue. The proposed transaction is still subject to certain conditions that include regulatory approval. EA retains the right to terminate the offer if the conditions are not satisfied.
Coming up later today: Take-Two's obligatory press release explaining why, in its view, EA's offer is a bad deal for shareholders.
UPDATE: Wow, that didn't take long. In a press release which followed EA's by less than an hour, Take-Two, as expected, slams EA's offer. T2 chairman Strauss Zelnick alludes to "multiple" suitors, but does not name them (Activision? Ubisoft?):
We are fully engaged in a formal process to evaluate strategic alternatives that have the potential to deliver greater value than EA's inadequate offer. As part of this process, we continue to engage in meaningful discussions with multiple parties, a number of whom have been conducting due diligence.
UPDATE: In a lively interview wiith VentureBeat's Dean Takahashi, EA CEO John Riccitiello touches on the T2 deal:
Having clever verbal sword play about Take-Two doesn’t really matter. I’m not really playing for a headline in the New York Times...
I don’t think we’ve played a poker hand. We have expressed our interest. We have made a public bid. We are in the Hart-Scott-Rodino antitrust review. All of the information has been disclosed. We’re playing it to the way we’ve said we would play it. There have basically been three moves and there have 6,000 articles on it. It’s sort of amusing. I feel a little bit like those strobe light things where it looks like a guy is moving a lot. The flash goes off but the body doesn’t move. Every time a flash goes off, somebody writes a story on it. To be honest with you, the last time there was news was a couple of months ago.
Comments
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
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Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
Not one bit. As long as T2 is under the gun to deliver increased shareholder value, it's under the gun to sell more product. As long as it's under the gun to sell more product, it's under the gun to push good games out of the pipeline as fast as possible. Sucks for their employees, but a win for us.
Summing it up
EA: WE'RE GONNA DO IT! WE'RE GONNA DO IT!!!
T2: No you aren't.
EA: YEAH HUH!
T2: No. No you aren't.
EA: YEAH HUH! WE'LL DO IT TOMORROW!!!!
T2: Suuuurrre.
Repeat forty two times.
That's how I interpereted this whole damn thing.
-Entertainment isn't the reason the world sucks. It's the reason we know the world sucks. For information on games and psychology, look up: Jonathan Freedman(2002)Block & Crain(2007)Grand Theft Childhood, by Harvard researchers Larry Kutner&Cheryl Olson
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
T2 is just holding out for "infinity plus 1"
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
Keep up the good fight T2. We need more Bioshock, more GTA, more of the great games and less of the "sequel-a-year" crap that EA pulls (except for this new game...idk the name, it's about a free-running girl, that looks cool). Take your time T2, do what you feel is best.
Seriously, who still buys Madden? Every one is the exact same as the one from last year, just with slightly better graphics and some different characters because teams change. I could see buying a Madden game every couple years, but why the need to make one EVERY SINGLE YEAR?
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
Because stupid people buy them.
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
The persistant horny bar drunk is back.
Seriously, only two parties want this to happen, and that is EA and Jack THompson.
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
We’re playing it to the way we’ve said we would play it. There have basically been three moves and there have 6,000 articles on it. It’s sort of amusing.
When did you say you'd extend the deadline as many times as it took for shareholders to grow interested? I'm guessing you aren't counting "extend the deadline/renew the offer for another month" as moves since you've done those a lot more than three times now.
There are 6000 articles on it because Take Two rejected your bid as too low, you went hostile, and half a year later it's still dragging on with only a fraction of share holders interested, probably because of the ever moving deadline.
You are right that it's amusing though. It's amusing because you're playing the fool.
-Gray17
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
What part of 'We're not interested' is EA not getting?
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
I don't recall hearing from T2 in past rounds that they were in talks with other parties. Dropping the DD hints is, obviously, just a way to claim seriousness, but it does seem to be a shift in strategy away from "we're not for sale" to "we're not for sale to you."
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
Doesn't EA understand the phrase "Other possible suitors?"
Or is EA so hell-bent on taking over T2, that they only see what they want to see?
This is truly the saddest state I've seen EA in... and their 2009 games aren't doing so well on the 360, from what I've been reading. So, EA - some advice. Instead of trying to bully T2 into selling to you, why don't you fix some 360 bugs with your EA Sports games?
Well. There goes more advice that won't be read... I seem to be on that trend lately.
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
I don't think T2 actually has any other interested buyers. They're just blowing smoke in an attemt to scare EA into raising their price. If any other company was legitimately interseted in buying, T2 would not be afraid to name names. This whole situation is going to end in a bitter hostile takeover. If T2 stock keeps declining, it is only a matter of time before EA buys enough stock to complete its acquisition. Look, I don't think it's good for the industry for T2 to be bought by EA(or anyone else for that matter), but they left themselves vulnerable and are now paying the price. What's best for us, the consumers, is less consolidation and more competition. It breeds lower prices, higher quality products, and more variety.
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
Look, I don't think it's good for the industry for T2 to be bought by EA(or anyone else for that matter), but they left themselves vulnerable and are now paying the price.
How exactly did they "leave themselves vulnerable"? EA could have made their bid at pretty much any time. T2 would have to have been twice as successful as they are to "protect" themselves.
-Gray17
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
They decided to go public with their company. A takeover is always a risk when deciding to go public. They have had years though to spend some of the profits they've made to secure their future by buying back a majority of shares but chose not to or were unable to. I think it was always in the plan to sell out when the time was right.
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
The crazy ex-girlfriend is back and right on schedule. Think EA will start sending used panties and locks of hair soon?
E. Zachary Knight
http://www.editorialgames.com
Oklahoma City Chapter of the ECA
MySpace Page: http://www.myspace.com/okceca
Facebook Page: http://www.facebook.com/profile.php?id=1325674091
E. Zachary Knight
Divine Knight Gaming
OK Game Devs
Random Tower
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
That made me LOL. Thanks!
“A reasonable man adapts himself to suit his environment. An unreasonable man persists in attempting to adapt his environment to suit himself. Therefore, all progress depends on the unreasonable man.” George Bernard Shaw
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
I think they are trying to force share holders into selling their stock like they are running out of time, but seriously after so many extentions (what are we in, like the fifth?) it would be better just to leave the door open for people who want to sell their shares at that price, while Take2's stock continues to drop.
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
Why must they continue on with these meaningless deadlines?
At least do yourself the favour of leaving an open offer on the table. Don't make yourself look like fools in the process. Leave that up to Peter Moore.
Re: EA Extends Deadline for Take-Two Shares; Zelnick Says T2
That's a very good question. I'm guess since they tried to scare shareholders with a 'deadline' back at the start, they feel compelled to keep a deadline rather than just change it to an open offer. Changing it to an open offer would amount to admitting they'd screwed up, and wouldn't give them the chance to remind investors about it every month in the news.
-Gray17
Re: EA Extends Deadline for Take-Two Shares
GEE HOW SURPRISING </sarcasm>