After extending their unsolicited tender offer for Take-Two stock for a fifth time, maybe it is time fro EA to take a hint. It does not appear that they will be successful at acquiring Take-Two at the price they are offering. Only about 11 million shares (15%) of the outstanding stock has tendered into the offer so far. Take-Two continues to say that the offer is inadequate, but maybe EA thinks they can get the tender offer through if they just keep extending it over time.
TAKE-TWO INTERACTIVE SOFTWARE, INC. RESPONDS TO ELECTRONIC ARTS' FIFTH EXTENSION OF TENDER OFFER
New York, NY— July 21, 2008 — Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today responded to Electronic Arts Inc.'s (NASDAQ:ERTS) announcement that it is extending for a fifth time its unsolicited conditional tender offer to acquire all of Take-Two's outstanding shares.
As reported by EA, only 11,741,339 of Take-Two's outstanding shares, or approximately 15% of the total, tendered into EA's offer as of 5:00 p.m. Eastern time on July 18, 2008.
Strauss Zelnick, Chairman of Take-Two, said, "Take-Two's Board continues to be 100% committed to maximizing stockholder value and remains unanimous in continuing to recommend that our stockholders not tender their shares to EA. 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. We also remain absolutely focused on executing on our strategic and business objectives."
Ben Feder, Chief Executive Officer, added, "In February, Take-Two's board rejected EA's offer as inadequate. Since then, the record-shattering release of Grand Theft Auto IV, the exciting announcement of a BioShock movie, and our ability to deliver financial results exceeding expectations have further demonstrated that our value-creation potential is greater than EA's offer. Take-Two is also continuing to create significant value through the development of world-class entertainment products, as well as improved operational and financial performance. Our stockholders will be the beneficiaries of these achievements, and it is management's mission to deliver the greatest value possible for them."
For more information, please visit www.taketwovalue.com.