EA To Let Take-Two Takeover Offer Expire
By Geoff Duncan
August 18, 2008
Game publisher Electronic Arts has decided to let its $2 billion takeover offer to Take-Two Interactive expire, after extending it five times.
The world's largest video game publisher, Electronic Arts, has said it will let its $2 billion takeover offer for the Take-Two Interactive expire today, bringing and end to its unsolicited bid to buy up the publisher of BioShock and the controversial Grand Theft Auto franchise.
In a statement, EA said it didn't believe it could benefit from acquiring Take-Two before the end-of-year holiday shopping season, and had to re-assess the value of its offer of $25.74 per share.
EA initially announced its intention to buy out Take-Two back in February. At the time, Take-Two executives rejected the bid as too low, especially considering the company was about to birth a new cash cow in the form of Grand Theft Auto IV. But EA persisted, extending its buyout offer five times; Take-Two stuck to its guns, calling EA's offer too low. At the same time, Take-Two has announced it expects to sign a confidentiality agreement with EA to evaluate "strategic alternatives" to a takeover.
"Our Board remains unwavering in its belief that EA's unsolicited conditional tender offer of $25.74 per share was inadequate and undervalued Take-Two's world-class entertainment franchises and our strong operational and financial performance," said Take-Two chairman Struass Zelnick, in a statement. "We welcome EA into our formal process."