Electronic Arts (EA) is one of the most popular and powerful video game manufacturers in the world. Although they have a strong hold on the industry, EA has no plans of slowing down. In October of 2007, the company acquired BioWare and Pandemic. While it has only been a few months since this takeover, the company is once again on the move. This time around, EA has their sites set on Take Two Interactive. But even though EA is interested in moving forward, it does not appear that Take Two has the same idea in mind.
Judging by how much EA is willing to spend, they must be pretty confident in how much success this acquisition would bring the company. Most recently, EA upped their bid to $26 per share. This works out to a cash offer of approximately $2 billion.
At this time, it appears that Take Two does not have any interest in being bought out. Although they are open to the idea, the company feels that it would be in their best interest to wait until after the release of Grand Theft Auto IV; a surefire hit. Of course, it is safe to say that EA is interested in buying before this game is released.
A recent statement by Take Two states:
“We believe EA’s unsolicited offer is highly opportunistic and is attempting to take advantage of our upcoming release of Grand Theft Auto IV, one of the most valuable and durable franchises in the industry.”
As you can see, Take Two has a strong feeling that EA is simply trying to cash in on the upcoming release of their most popular game.
On the other side of things, John Riccitiello, EA CEO said, “”There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today.” It is obvious that EA wants to make this deal happen right away so that they can use their industry power to cash in on the soon to be popularity of Grand Theft Auto IV; they are not hiding this fact.
At this point, one thing is clear: EA is interested in acquiring Take Two. But with that being said, Take Two has no plans on moving forward in the near future. Do not be surprised if EA attempts to wage a proxy fight against Take Two; similar to what Microsoft is planning to do to Yahoo. The question is: will Take Two give in, or will EA have to become more persistent?
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Comments
ricky said on February 26th at 03:05 pm,
It is a good business strategy by EA sports but I don’t think so that it will work.
Take-Two is a company which is producing some of all time favorite game of series and this time they are releasing GTA IV which will hit the market very soon.
So let’s see what happens whether Take-Two will accept the deal or not!
Nick said on February 27th at 01:21 pm,
I have always been a great fan of EA’s games and their quality of games have always been a plus point for them. It is good to know that this amazing gaming company is expanding and i hope that they indeed acquire Take Two and expand and come up with even good online games!
symonds said on February 29th at 08:55 am,
There are always two sides to any thing. If EA takes over Take Two, I hope this will sound good for us as well as both the companies in genral. This is ofcourse if Take Two accepts the offer.
typical said on March 28th at 01:45 pm,
it’s just like EAborg to try and eat every successful thing it can.
This does not bode well for the future of the gaming industry if take two accept further down the line (which i severely doubt, given EA’s shady tactics over this whole situation).