EA extends Take-Two offer

Deadline for megapublisher's take over proposal pushed back until after the Rockstar parent's delayed annual meeting.

The latest twist in what is rapidly becoming a saga was revealed today in the ongoing Electronic Arts attempt to buy Grand Theft Auto IV publisher Take-Two.

Electronic Arts' original offer for the company was $26 a share, for a total of around $2 billion, which was rejected by Take-Two despite being a 64 percent premium over the price of stock at the time.

The Sims publisher's next move was to go hostile and take the offer directly to the shareholders, whom Take-Two asked not to sell up, saying that it believed the offer was "inadequate." Executives also adopted a poison-pill shareholder rights plan which would make any hostile takeover more costly for the acquiring party.

Today, EA responded by extending its tender offer until the end of the day after the meeting, April 18. Furthermore, the publisher amended its offer to make it conditional on Take-Two executives dropping the poison-pill provision in relation to EA.

EA's senior vice president of corporate development, Owen Mahoney, warned that Take-Two's delaying the transaction could "increase the risk for the stockholders." He said, "We continue to believe that our $26 per share offer price is full and fair, and that a transaction between Take-Two and EA is the most compelling combination financially, strategically and operationally for all parties."

EA also reported that as of Thursday, approximately 5,000 Take-Two shares had been tendered, and Associated Press stated that its records showed that on December 14, 74.3 million of the company's shares were outstanding.

412 Comments

  • Darkblyth

    Posted Apr 25, 2008 6:25 pm GMT

    EA stop plz

  • cementface9

    Posted Apr 13, 2008 7:17 pm GMT

    Gaming as a whole seems to be degenerating, especially for consoles. It's really disheartening. It's depressing and almost scary to think that we will never see game libraries like those of the SNES and PS2 ever again. EA is definitely doing it's part to turn videogames into just another industry where money rules all and art takes a backseat to marketability. I truly believe that this generation will mark the beginning of the end of console gaming, and maybe videogames as an art form altogether, if something doesn't change. TakeTwo, please, be that change. Say no to EA no matter what the cost, in the name of artistic integrity.

  • SweetMusic

    Posted Apr 11, 2008 9:18 pm GMT

    eattake2.com

  • SweetMusic

    Posted Apr 11, 2008 9:08 pm GMT

    SAY NO TO EA, TAKE 2 GAMES! Investors, BE SMART and do not agree to be taken over by EA. GTAIV could be the best game on either platform up to this date.

  • Owen7Miller

    Posted Apr 5, 2008 5:07 am GMT

    If EA screwed Up the PS3 port of the Orange Box* Then how on earth will they Do GTA? Long load Times With crappy Frame rates (and Bad story line and In game Advertising)? *Gabe Newell Is the second fattest Xbox Fanboy I've ever seen.

  • Nuke_trooper

    Posted Apr 4, 2008 6:14 pm GMT

    Take-Two is really getting bullied into selling up. If EA started making GTA, they would kill it with in-game advertising.

  • brosim1104

    Posted Apr 4, 2008 5:27 am GMT

    l

  • cuitexcutei

    Posted Apr 4, 2008 3:51 am GMT

    I don't care if it IS a good business transaction, DO NOT SELL YOURSELF TO EA. Take-Two hold on, you're going to win soon!

  • ps3cooly21

    Posted Apr 3, 2008 11:26 pm GMT

    dont take it ea wont do any better stay with rockstar games they help u so much ea bid souldnt be taken at all u know better ea is so not good

  • xunhallowed

    Posted Apr 3, 2008 7:37 pm GMT

    longbow02 - NHL 08 is freaking awesome. Don't even start. I have NHL 2K8 also (I bought that first), and it is garbage compared to 08. Haven't played it since I got 08. Besides, why don't you look at the reviews for hockey games? Lately, EA won. NHL 08 = Sports Game of The Year on GS? Yeah. Don't post if you don't know what you're talking about.

  • retrofraction12

    Posted Apr 2, 2008 8:06 pm GMT

    as they say in star wars episode 3 " NOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"

  • longbow02

    Posted Apr 2, 2008 4:24 pm GMT

    EA is retarded. Recycled games over and over. And I'm pretty much sick of sequels which they seem to be making like crazy. I'm gonna miss the NHL2k series. EA's hockey has been crappy since NHL 99 on the N64.

  • psgored21

    Posted Apr 2, 2008 12:43 pm GMT

    there are some things that i dont think people are seeing here...1 its no secret that EA is seriously considering the development of a console...2 the now have peter moore who has been rediculously influencial in 2 recent major console launches (dreamcast and xbox 360) 3 purchasing all these companies makes up for one hell of a first party line up for a console (combining the creative minds for sports games would be absolutely insane 2k/ea produced football game would revamp madden the franchise something wicked) 4 i hate ea for what they did to football and the james bond series but theres going to be no stopping them if they get their way. and the scary thing for gamers is that they probably will. the government wouldnt be able to say anything to them without saying anything to microsoft and sony. hell think about it, sony computers ship with windows operating systems. all these companies are just going to continue to feed of one another till the market crashes...sigh...

  • mircea_calarasu

    Posted Apr 2, 2008 8:02 am GMT

    NOOOOOOOOOOOOOOOOO!!!!! THIS IS THE APOCALYPSE, MAN!

  • etchus posted Apr 2, 2008 4:35 am GMT (does not meet display criteria. sign in to show)

    etchus

    Posted Apr 2, 2008 4:35 am GMT (hide)

    most of you guys don't get it do you?, this is the real world, wake up from your fantasies guys!!

  • DanC1989

    Posted Apr 2, 2008 1:26 am GMT

    5,000 out of 74.3 million?

  • yatatabien

    Posted Apr 1, 2008 10:26 pm GMT

    Zeeksie: Put Maxis on the list too.

    The Sims is plagued with expansions, that makes the core game smaller and dissaponting than any games in history.
    And Simcity was killed with Societies

  • Zeeksie

    Posted Apr 1, 2008 5:45 pm GMT

    EA will never learn, they'll keep ruining their already messed up reputation until one day their offices will be overrun by a bunch of pissed off gamers.
    As if Westwood and Bullfrog weren't enough huh?

    EA should do everyone a favor and simply disappear.

  • theone86

    Posted Apr 1, 2008 4:52 pm GMT

    "EA is getting close to being a monopoly, and almost already has a monopoly over severeral genre's of games."

    It's technicalities like that which allow them to do this legally. First of all, trust laws weren't passed back when people could own monopolies over genres of entertainment. Second, most politicians are either taking a stand on one side or the other of video game restriction or just don't care about video games. Wherever they stand on the issue, it's easier to keep things in check within the industry when one company is dominating. They're not going to risk whatever benefits they're getting from a lobby to goo after EA, especially when there's so much of a gray area.

  • DDR_Midian

    Posted Apr 1, 2008 5:57 am GMT

    "This is the people for the people who hate ea....i own a PS3, and almost half (maybe even 75%) of my games come from EA. So guess what? Maybe you should just leave your ea-hating thoughts to yourself."

    Makes sense considering the console you're playing. Oooh.. controversy!

    @Ek-Andy
    Sure, Take Two aren't the best company around, probably not even close, but that doesn't stop EA from being a total bunch of unwanted, ad-pushing ******s.

  • Tolwan

    Posted Apr 1, 2008 3:57 am GMT

    I dont understand why congress hasnt gotten involved yet. EA is getting close to being a monopoly, and almost already has a monopoly over severeral genre's of games. I swear, all of the old underhanded tactics of american businesses in the late 1800's are being used today in the gaming industry.

  • Ek-Andy

    Posted Mar 31, 2008 3:22 pm GMT

    I think people need to stop looking at this as black and white, with EA being the personifocation of evil, and Take Two the heroines of the gaming industry. Seriously it really dosnt work like that, this is buisness, not magic fantasy land. Im pretty sure Take Two arnt exatly as innocent as they make themselves out to be.

  • Citan76

    Posted Mar 31, 2008 3:19 pm GMT

    Take the poison pill EA if you want the freaking company so bad. Geez they could destroy take-two simply by turning the stockholders against the board of directors and then backing out of the deal. They're making all these threats and going hostile they should just pay whatever stuff the 2K guys did to make them harder to buy and live with it.

  • speedjunkie4 posted Mar 31, 2008 1:06 pm GMT (does not meet display criteria. sign in to show)

    speedjunkie4

    Posted Mar 31, 2008 1:06 pm GMT (hide)

    This is the people for the people who hate ea....i own a PS3, and almost half (maybe even 75%) of my games come from EA. So guess what? Maybe you should just leave your ea-hating thoughts to yourself.

  • grahamo1

    Posted Mar 31, 2008 12:55 pm GMT

    "increase the risk for the stockholders."

    can't agree with this, the share holders are in a stronger position now than they've ever been

    the only problem is the share holders are going to decide the fate of a company and a large percentage of the gaming world

  • da_chub

    Posted Mar 31, 2008 11:54 am GMT

    I really think EA is trying to take over the gaming world. They are buying companies from microsoft, they have made offers for sega, they are making a console for the next gen possibly. I think it is incredibly bad, they only care about making money. We dont need to turn video games into pop music.

  • commando611

    Posted Mar 31, 2008 11:31 am GMT

    EA Needs To Die... they turn gta to the sims..

  • makemeweak

    Posted Mar 31, 2008 11:30 am GMT

    It's crappy business decisions that have put Take Two in a horrible spot. Why should the shareholders listen to the executive board now? The board is just trying to make more money for themselves off the deal, while screwing the shareholders over.

  • HellaFatCat

    Posted Mar 31, 2008 10:55 am GMT

    EA would ruin the GTA franchise.. they don't care about the customer as much as they do the profits. Madden is a great example as its been 7 months since the game came out and the (advertised right on the box as 30 seasons) franchise mode is still broken and will doubtfully be fixed. they dont care if they publish sub-par and/or glitchy games. I used to play madden religiously. but my faith in them has been over-broken. i hope this takeover does not go through as take-2 is one of the few publishers who would even delay one of the most anticipated games so the customers are happy. i know it sucks waiting for GTA4 but (hopefully) at least they will put out a superior product. EA blows and anyone who is/was a fan of franchise mode in madden or BF2 when it was still popular know exactly what i'm talking about

  • Partisan357

    Posted Mar 31, 2008 10:18 am GMT

    Ken Levine must be really happy. First EA shelved System Shock 3, now they can do the same for Bioshock 2. Maybe they'll do the same for it as they did for Ultima VIII. Just ask Lord british about that. It's not that EA makes really bad games, it's that they take all the uniqueness from them in order to widen their appeal and thus make more cash. Same thing over and over, just different skins.

  • AceTen

    Posted Mar 31, 2008 9:41 am GMT

    EA is such an a-hole company, Im not buying any games from them ever again, and Im an avid Madden fan and Bioshock fan screw EA I refuse to give them my money.

  • Hvac0120

    Posted Mar 31, 2008 9:07 am GMT

    This is just EA's way of trying to keep from paying any more money than they have to for the take-over. It seems to me that the take-over is inevitable, but how much it's going to cost EA is the issue at hand.

    I think that Take-Two is trying to be smart about the way they handle this and is using whatever tricks they can to get more money out of a purchaser (EA). It's seems to me that EA is in check and is trying to call "bluff." How will this turn out? Find out on next episode of "As the Games Spin" ...

  • Hailogon

    Posted Mar 31, 2008 8:59 am GMT

    azusupernova it's been delayed once? So your argument that we're somehow suffering at this stage at any rate is completely invalid...

  • azasupernova

    Posted Mar 31, 2008 8:28 am GMT

    Also we gamers are at the losing end of this current takeover fiasco..

    GTA keeps getting pushed and delayed.. possibly for Take 2 to get a better deal from EA. EA wants to get Take 2 before GTA gets out because its gonna make gazillions.. Poor Rockstar just steps back and watch..

    We just keep getting our release date pushed further and further and this might push it even further. Some of us have been waiting since December for it ):

  • azasupernova

    Posted Mar 31, 2008 8:26 am GMT

    Rooting for Take 2.. I enjoy a couple of EA's stuff (Crysis, Battlefield 2 etc..), though a majority of their new titles seem more to churn out profit by building incredible hype about a game, rushing the developers and releasing crap, or cashing in on profitable series with crap (Sim City Societies, Need for Speed Pro Street.......)

  • dewd4

    Posted Mar 31, 2008 8:15 am GMT

    "We continue to believe that our $26 per share offer price is full and fair, and that a transaction between Take-Two and EA is the most compelling combination financially, strategically and operationally for all parties."

    What a joke. However here over at Gamespot and just about everywhere else in the gaming world we belive that EA should die and that a transaction between Take-Two and EA would be bad for all gamers.

  • ThePhatDragon

    Posted Mar 31, 2008 8:05 am GMT

    To MarcjinJaume.

    I am actually quite taken with your idea of each buying shares. That really would be a case of gamers standing up to a conglomerate. The problem is there are some 14, 74.3 million shares that are theoretically up for grabs. I can't see that we could find 14 million gamers who cared enough to buy a share. Therefore maybe some of us should just buy 10 each... that's getting into some money though. I am gonna investigate getting some for my birthday, I might set up a facebook group too to see if there is enough interest in the idea. I don't realistically think there's a chance though, the largest facebook groups rarely get over a million members. Anyone got any other suggestions for a pratform to launch an initiative like this off?

    *Christ I am hopelessly idealistic*

  • Belwar555

    Posted Mar 31, 2008 8:05 am GMT

    Everyone, heres an idea. Spam the EA forums with posts like the one's here. That might open up the eyes of EA fans to stop and think, to tell the world what we, gamers, actually think. And also to piss the EA d**kheads off.

  • MarcjinJaume

    Posted Mar 31, 2008 7:12 am GMT

    we should all buy a share of take 2 at at $30 each, if it means take 2 staying away from EA, its money well spent!!!! then when EA asks for our shares, we say "**** you". job done...

    seriously though, if EA wants Take 2 and GTA, they will get it, its not good though, they screw up everything they touch.

    I like your idea, and for a GTA lover like me it'd be an honor to own a little part of the company that makes it possible

  • MariusSE

    Posted Mar 31, 2008 7:01 am GMT

    Gief government intervention

  • Proman84

    Posted Mar 31, 2008 6:51 am GMT

    If EA succeeds, it would be bad for gamers.

  • tufflukthakid

    Posted Mar 31, 2008 6:47 am GMT

    EA is just trying to take over the "entire" gaming industry eventually...and soon enough we'll have a monopoly. But no one else can do justice to GTA more than Taketwo and Rockstar....EA dont FUK it up

  • Rusco2006

    Posted Mar 31, 2008 5:41 am GMT

    All i know is, they better not delay GTA or anyother game just to slab the EA label on the titles. JUST BACK OFF EA!!!

  • mafdys

    Posted Mar 31, 2008 5:21 am GMT

    GO DIE EA!

  • everson_rm

    Posted Mar 31, 2008 4:34 am GMT

    WTF... I will boycot any "take two" game that EA come to publish if they sell the company for them!!! EA: GTFOff

  • Mahoganyjoint

    Posted Mar 31, 2008 4:06 am GMT

    i hate EA so much, they dont get the message,

  • Mauller

    Posted Mar 31, 2008 4:06 am GMT

    EA doesn't know what it is to create anymore, simply dominate. Before they wanted to remove 2K sports games from the equation by buying exclusive rights to various sports, when that didn't work, they'll just buy the company to drive it under.

  • Big_Red_Button

    Posted Mar 31, 2008 4:04 am GMT

    Thats a good idea NinjaMunkey 01; its money well spent to keep their games good, and not becoming EA shovelware.

  • NinjaMunkey01

    Posted Mar 31, 2008 3:29 am GMT

    we should all buy a share of take 2 at at $30 each, if it means take 2 staying away from EA, its money well spent!!!!

    then when EA asks for our shares, we say "**** you". job done...

    seriously though, if EA wants Take 2 and GTA, they will get it, its not good though, they screw up everything they touch.

  • OMGitsZAL

    Posted Mar 31, 2008 3:11 am GMT

    Freshgman, what if they tamper those games with ingame advertising and an "EA Trax" soundtrack? Plus, the PS3 might be left with the crappily ported copy.

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