EA Bids $2 Billion on Take-two
February 27, 2008
(Long Island, N.Y.) Take-two Inc. which owns the hugely popular video game franchise Grand Theft Auto and all its variations received a $2 Billion buy-out offer from Video Game industry giant Electronics Art Inc.
Take-two Chief executive Ben Feder described EA’s offer as “the wrong price at the wrong time,” after his company’s stock jumped on Monday but intimated his openness to discuss any deals of a buyout with EA Inc. after Take-two releases the newest edition of its best-selling game Grand Theft Auto on April 30, 2008.
News of the buyout offer from EA Inc. sent Take-two Interactive Software Inc. stocks soaring with an impressive 55 cent a share increase yesterday from $26.34 to a close of $26.89. Experts agree that the offer from EA Inc. to takeover Take-Two stems from recent talks between Activision Inc. and rival company Blizzard Entertainment of a possible merger which would pose a big threat to EA’s domination in the Video Gaming industry.
Video game industry experts and Wall Street Analysts agree that EA Inc. holds the leverage in this deal as they have the luxury of transforming this transaction into a hostile bid or to play the waiting game and swoop in when the Take-two Inc. takes a price hit.
EA Inc. CEO John Riccitiello said in a press conference, “There can be no certainty that in the future EA or any other buyer would pay the premium we are proposing today, we believe our proposal is fully priced,” he said. “Grand Theft Auto IV should by now be essentially complete; the buyout bid would not jeopardize the development of this incredibly important title.”
Grand Theft Auto IV is slated for release on April 29, 2008. It is the newest installment of Take-two’s most popular video game which has sold over 65 Million copies worldwide. First introduced as Grand Theft Auto in 1997 the game was widely accepted worldwide which prompted the company to create subsequent controversial prequels such as Grand Theft Auto 2 on 1999, Grand Theft Auto 3 in Oct. of 2001, Grand Theft Auto: Vice City, Grand Theft Auto: San Andreas and Grand Theft Auto Advance.
Posted by News LI Editor · Filed Under Tech
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