EA wants Take-Two at all costs. Analysts stunned
Category: Industry, Posted: 03/21/2008 at 02:09PM CDT by Frank Ling, Editorial Director
EA's fixation on buying out Take-Two Interactive is becoming big news outside of the game industry and has the attention of surprised Wall Street analysts.
Last month Take-Two rejected an offer from EA for a $2 billion buyout and said the price was "inadequate." Wall Street watchers believe that the refusal was based upon the upcoming release of Grand Theft Auto 4 and how this blockbuster hit would obviously push up the value of Take-Two past the initial bid price offered by Electronic Arts.
The move by Electronic Arts to commandeer Take-Two through a hostile takeover has not only shaken up the shareholders of the company but has generated a small frenzy of opportunistic buyers that have snapped up Take-Two shares in the hopes of catching in on the impending buyout.
During these events, Wall Street analysts have commented that the hostile takeover bid by EA is unprecedented in the gaming industry. DFC Intelligence president David Cole said, "This is the most aggressive approach for a publisher ever - there simply haven't been hostile takeovers in the games space."
Michael Pachter, analyst for Wedbush Morgan concurred and stated, "I don't recall ever seeing a hostile takeover in games. I think Take Two's board will try to squeeze more money out of EA by making this a friendly deal."
While Electronic Arts has a long history of purchasing game companies, it has never shown the strong-arm tactics recently revealed in its attempt to buy T2. As more game companies are either bought out or merged, one has to wonder if this is really good for the game industry and for that matter, gamers.
[via mcvuk.com]
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I think ea is just trying to rape the GTA series. I feel take two should keep it real, and just stay on its own.
That is 2 billion at least though....
umm... anyone remember what happened when EA bought Virgin Interactive? how they cancelled "thrill kill", a title that was completed and ready to be manufactured (magazines had even started to produce final reviews and strategy guides!). all because they didnt agree with the "violent nature" of the title!!!
now... we all know they would NEVER cancel gta4. but i am firmly in rockstar's corner on this one. ea is simply trying to jump on board at the last minute in an attempt to steal away a big pay day for another publisher. otherwise they'd have no problem discussing a possible buyout AFTER the release of gta4.
EA should worry about the state of their own games instead of trying to cash in on other developers hard work. Most of the sports titles, The Sims, MOH; all titles that EA beats like a dead horse but that don't really seem to improve. I have a great company slogan, "We don't innovate, we takeover those that do!"
This is sorta reminding me of Microsoft's aggressive stance 10 or so years ago. Monopoly is a good game, but bad business. Diversity is good, and all that. I just don't want EA getting their dirty hands on the beloved GTA series. They've had some good new titles recently, but they need to shape up their yearly titles immensely before they'll get any kind of love from me. Even though I hate sports games, I'm tired of hearing people bitch about the bugs and etc every year.
Seriously, someone at T2 just needs to send an email to EA saying "FUCK OFF." and nothing more.
Fantastic pic...
Enterprising Assholes can fuck off. They are making it plainly obvious that they want to cash in on GTAIV because they know it will be hugely successful. I really hope T2 doesn't get bought out, or we can look forward to the next GTA game full of adverts and shitty game play values.
Greedy corporate knobheads...
The sims is probably the only thing I like from ea right now.
EA needs to watch it.
I was thinking the same thing Bob was, that this is starting to remind me of Microsoft's behavior a few years back that resulted in an illegal monopoly and antitrust lawsuits out the yin-yang.
If they continue to attempt to stifle and take over every single publisher they see as a threat, they could end up in some very hot water before its all said and done.
What would be more fitting, though, than to see EA outgrow itself, get in trouble, and end up costing themselves more than leaving their competition alone would have in the first place?
I wouldn't mind seeing it, myself. Actually, I'd dance on their corrupt, corporate shambles if that day ever came...