Cat and mouse game continues for EA and Take-Two
By Tim Conneally | Published March 28, 2008, 12:47 PM
EA's hostile takeover of Take-Two Interactive that began earlier this month has received an extension until the day before Grand Theft Auto IV is to be released.
This week, a defensive effort was adopted by Take-Two, which in the business vernacular is referred to as a "poison pill." Poison pills commonly take the form of stockholders' rights plans, which steer hostile takeover bids away from stockholders and back toward the board of directors.
It is the opinion of both Take-Two's board of directors and its bankers that EA's offer is insufficient.
The six-month poison pill Take-Two put into place prevents any single investor from acquiring more than 20 percent of the company's outstanding stock.
In response, EA has extended the expiration date of its common stock tender by another week to coincide with Take-Two's rescheduled annual meeting. In that time, EA hopes Take-Two will reconsider the poison pill and allow the takeover. EA has not amended its buyout offer, saying it is "full and fair."
EA is tapping its proverbial watch while Take-Two scrambles toward the release of GTA IV.
I think if EA takes them over GTA IV will be the last game for the grand theft auto series. EA doesn't have the guts and will fall in line with the companies trying to end the game's existence. that would go for Manhunt game's too
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|Last thing i remember about EA was DICE takeover and the end of Battlefield 2 (at least for me). Sacking the devs responsible for doing the patches right after was clear reminder how much quality means for EA. Not that i feel sorry for the devs who were responsible for the patches, because they sucked ***. Going in circles for almost two years is enough evidence that they were clueless.
EA is just... sucks you up, chews and spits you out.
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|"Going in circles for almost two years is enough evidence that they were clueless."
Was that before or after Bf2 for the 360? The 360 version has the best gameplay of any online game I've played. If I recall there was one patch installation forced on my first run, but aside from sparse server issues it runs like a charm.
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|The problem is that whenever EA takes over a developer, they take a dump on the actual programmers who made that developer successful, firing them and/or moving them off of the projects with which they are familiar with little regard to product quality. Then they take a dump on the purchasers who made those developers successful, delivering shoddy products and little to no patch support despite numerous outstanding issues.
The MARKET does not want EA to take over Take-Two any more than Take-Two's shareholders do, and I'm certain few Take-Two employees want it either.
I seriously hope Take-Two has a poison pill in place, but they probably don't.
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|EA if you haven't noticed has taken over so many companies in the last decade it's not even funny. The painful thing about all those programmers going out and creating companies they don't understand the financial back most of the big games get. After producing a few games they go out of business due to 1-2 bad games. Companies like EA merges them into themselves. Blizzard for example went like this:
Silicon & Synapse to Chaos Studios to Blizzard Entertainment then acquired by Davidson & Associates (no name change ever again) which was acquired by CUC International, which then merge with some reestate company to become Cendant. Blizzard was sold to Havas which is not owned by Vivendi. And then Blizzard has acquired 3-4 companies, makes of Diablo and Starcraft:Ghost (diablo's make named changed to Blizzard North, which is now Just Blizzard).
EA has a history so much longer then that even. That is Blizzards history for the last 17 years.
Why is it surprised that EA is trying to take over another company. EA is one of the few succeeding Game Development companies out there.
(if i left anything out on Blizzard's***ory feel free to input)
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|"those programmers going out and creating companies they don't understand the financial back most of the big games get"
What do you mean they don't understand it. Can you share an example of a programmer who didn't think their company would be eventually bought out by a competitor?
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|HAHA
so even the stock holders see that EA is CRAP
They do fine on their own they don't need those tools to "help" make progress from a good company to a company that produces the crap of EA. Besdies its not like we need another company advertising in games or charging for additional weapons. EA can go suck eggs
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|T2 is on the ropes and will be bought by EA. The question is when? If T2 can wait until GTA 4 goes on sale, then they can get more money out of EA. I would love to see how this one plays out. I am sure Sony and MS are sitting there and wishing they could scoop T2 up.
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|Both MS and Sony could offer a *lot* more than EA. If they wanted it that badly, they'd have it.
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|Well I'd rather see EA buy T2 than Sony. Sony is the worse of the worse.
I think it would be a good buy for MS though. If they bought it before GTA4 came out they can scrap the PS3 version of it and just have it on the Xbox 360 and PC which would add to their hit titles only on the 360 (along with adding bully and Bioshock if they make part 2 of either of those games). Plus it would save 2K sports instead of it becoming absorbed EA sports (which sucks).
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|I agree, and I don't know why their not making bids. Granted if Sony bought them it would be worse then EA because we all know how many good games Sony has made...none.
MS has Fable, Mass Effect, Gears of war, The Halo series, Project Gothem racing, and Age of Armor. Even T2 should be able to see a buy out from MS would mean their future games still have a chance to become hits. If I were T2 I would be asking MS to buy me.
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|EA should just leave T2 alone. This will teach game devs never to trust EA, as soon as you make a few good titles EA will want to gobble you up. Their like dealing with the devil, you let them have some shares of your company and the next you know they want to buy you weather you like it or not.
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|Take-two went public.
if they wanted to remain safe from these kinds of things, that would be something that perhaps they should not have done?
It's part of going public. Risk vs. reward. You are giving up sole control of the company in exchange for (hopefully) increased cash-flow.
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|I agree but doesn't mean they have to bow down to hostle take over from a crappy company. They have already decided against this and EA keeps trying. In the end it will be the gammer that suffers.
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|but doesn't mean they have to bow down to hostle take over from a crappy company.
Yes actually, they do. That's why it's called a hostile takeover. :)
They can stall it all they want, but in the end, if EA throws enough money around, T2 is done for.
In the end it will be the gammer that suffers.
Put away the crystal ball. We won't know that until it's all over.
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|I'd rather see MS or Blizzard take them over. At least these two companies have brought out good strong titles. If either are smart they would put in a bid, but I know MS is busy trying to buy Yahoo. Personally for MS I think T2 would be a better buy than Yahoo, but MS and EA have one thing in common, their like pit bulls, when they have their teeth into somthing they don't give up without a tazering.
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|I agree with PC_Tool when he says we won't know what will happen until the deal is finally done. I see EA receives a lot of flak (a lot of times for legitimate and justified reasons), but we need to be patient and see what happens.
How much money does the BoD want? $26 per share is a 64% premium over the closing price of the company's stock at the time. Will it be okay if they offer $30 per share? $35 per share?
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|"In the end it will be the gamer that suffers.
Put away the crystal ball. We won't know that until it's all over."
Bull$***. Name a SINGLE company EA has taken over that has put out something even close to the quality they produced before the merger.
That's right. There are none.
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|You cannot know they would have produced anything better had they not been bought.
You fail to see the logic involved: One simply cannot predict the future, for as sure as you tell me that two-headed quarter will land heads-up, it will land in a crack and be neither heads nor tails.
Hate EA. Fine. Just don't abuse logic in doing so.
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|I just wish I could be there to see EA flopping around and twitching while they are being tazed.
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