News

Take-Two fires back...again

Posted by: Dan at 4/18/2008 10:47 AM
After EA sent in a lower tender offer earlier today, Take-Two responded this morning essentially telling EA to buzz off. Apparently only a small portion (around 8%) of Take-Two shareholders holding outstanding shares tendered into EA's offer. The response from Strauss Zelnick (Take-Two Chairman) kinda sums it up:

"The minuscule number of shares tendered, as well as the strong vote in favor of the proposals presented at our annual meeting, offer indisputable evidence that our stockholders regard our efforts to enhance Take-Two's stockholder value as superior to the EA offer," said Strauss Zelnick, Chairman of the Board of Take-Two. "This is the same highly conditional proposal that EA offered Take-Two stockholders on March 13, 2008, which our Board of Directors thoroughly reviewed and unanimously determined to be inadequate and contrary to the best interests of Take-Two's stockholders. Take-Two's Board of Directors has maintained from the beginning, and continues to believe, that EA's proposal undervalues our Company. It undervalued the company at $26 per share, and it certainly undervalues Take-Two at $25.74."

Realistically, it appears that if EA wants Take-Two, they will have to raise their tender offer significantly.  GTA IV is due out in less than a month, so the clock is ticking for EA to get a bargain tender in and accepted before the sales figures bolster Take-Two even more.  GamingNexus will keep you posted as this battle continues.


Apr 18, 2008 10:17

Take-Two Interactive Software, Inc. Responds to Electronic Arts' Extension of Tender Offer at Lower Price Per Share

NEW YORK --(Business Wire)-- Apr. 18, 2008 Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today responded to Electronic Arts Inc.'s (NASDAQ:ERTS) announcement that it is extending its unsolicited conditional tender offer to acquire all of Take-Two's outstanding shares. EA has reduced its previous offer of $26 per share of common stock to $25.74 per share in cash, as a result of Take-Two stockholders' approval of amendments to the Company's Incentive Stock Plan at the Take-Two's Annual Meeting of Stockholders.

As reported by EA, only 6,432,787 of Take-Two's outstanding shares, or approximately 8.3% of the total, tendered into EA's offer as of 5:00 p.m. Eastern time on April 17, 2008.

"The minuscule number of shares tendered, as well as the strong vote in favor of the proposals presented at our annual meeting, offer indisputable evidence that our stockholders regard our efforts to enhance Take-Two's stockholder value as superior to the EA offer," said Strauss Zelnick, Chairman of the Board of Take-Two. "This is the same highly conditional proposal that EA offered Take-Two stockholders on March 13, 2008, which our Board of Directors thoroughly reviewed and unanimously determined to be inadequate and contrary to the best interests of Take-Two's stockholders. Take-Two's Board of Directors has maintained from the beginning, and continues to believe, that EA's proposal undervalues our Company. It undervalued the company at $26 per share, and it certainly undervalues Take-Two at $25.74."

"EA's highly conditional offer fails to compensate our stockholders for our exceptional portfolio of intellectual property, world-class creative resources, and our successful revitalization initiatives. The recommendation of our Board of Directors that stockholders not tender their shares to EA remains unchanged."

"The Board is committed to maximizing stockholder value and continues to explore all strategic alternatives, including a business combination with third parties, remaining independent, or other strategic or financial alternatives. We have received expressions of interest from a number of interested parties and look forward to beginning formal discussions following the launch of Grand Theft Auto IV. The Board continues to believe that we will be best positioned, from the perspective of both value and timing, to move forward at that time. We are confident in the significant growth potential of Take-Two and in the unique value of our business given our strong position in this dynamic industry," Mr. Zelnick concluded.

For more information, please visit http://www.taketwovalue.com.