EA Launches 'Hostile' Bid for GTA Publisher

Games news sites are reporting that EA has issued a new offering to Take-Two's shareholders in an attempt to purchase the company outright. Last month EA offered some $2 billion to Take-Two in an effort to accomplish the same goal. Take-Two declined, and EA took their offer public. Now, Electronic Arts is offering the price of some $26 per share to Take-Two's holders, a generous valuation. "Within ten business days Take-Two is required by law to publish, send or give to shareholders (and file with the Securities and Exchange Commission), a statement as to whether it recommends acceptance or rejection of the latest offer ... Since EA launched its February bid Take-Two said that other parties had approached it regarding a merger, but that it hadn't entered into negotiations with other companies about a deal."

Comments

Re:I'm no big fan of Take-Two

[Shakrai]

But still, I hope that EA doesn't take hold of them. EA's gaining way too much influence on gaming, and considering how they run things into the ground and churn out mediocre games on the backs of good games makes me worried that they'll grab as many companies as they can, and run them and their brands right into the ground.

I watch them to do this to Maxis after they bought them out. We went from an absolutely great concept (Sim City) that was implemented nearly perfectly in Sim City 2000 (given the technological limitations of the time) to unstable bloated garbage that cared more about pretty graphics (Sim City 3000) then gameplay and required Google's server farm to run at a decent speed....

And don't even get started on 'The Sims'. Even if I thought it was a good concept (which it might be -- but it's no Sim City, IMHO) WTF is up with twenty thousand different "expansion" packs? They neglected a great franchise (Sim City) in favor of using the brand name to push a crappy product that they sold in 30 different parts.

Why'd ya have to sell out Will?

Re:Very Generous

[EastCoastSurfer]

EA offered to buy them a couple weeks ago. Take Two refused. So now EA is pissed and wants in before the next release of GTA. IMO, this is a bad move for EA. GTA has been a good franchise, but it is all TT has. Plus, how many times can you rehash the same thing (whoops that's what EA is famous for lol). I'm not so sure I would value GTA in it's current state at 2B. The GTA franchise has sold 66M game to date. At $50/each that's 3.3B over the life of the franchise. You have to assume the franchise will continue to grow for a 2B price tag. Speaking of growth, will Nintendo even let a game like GTA on the wii?

Re:If this goes through..

[mikael]

The next title of the game has already been developed, and it is about to be released, with guaranteed profits. It is no surprise that EA sees a quick way to boost their quarterly earnings reports.

Re:Very Generous

[shlepp]

I have a feeling this whole buying thing has to do with 2k sports, EA's only rival in the sports games.