Take-Two Turn Down EA’s Proposal
It has been confirmed today that Take-Two have refused an offer by Electronic Arts to buy the company. The offer came just a few days after the release date for Take-Two’s most anticipated title, GTA IV was announced, prompting Take-Two to refer to the offer as “highly opportunistic”.
In a statement issued by Take-Two Interactive, Strauss Zelnick, Take-Two’s Executive Chairman said that “Electronic Arts’ proposal provides insufficient value to our shareholders and comes at absolutely the wrong time given the crucial initiatives underway at the Company.”
Zelnick goes on to say that EA have not only “undervalued key elements” but also failed to take into account the future growth of the company, stating that “while we have made substantial progress already, the turnaround of our business which we initiated in June is not yet complete, and we believe its benefits have not been recognized”.
Along with the statement, the press release also comes with the letters sent between John S. Riccitiello, EA’s CEO and Zelnick revealing a very private, and almost bitchy world of negotiations. After EA’s initial offer for $25 per share was outright rejected, they raised it to $26 per share but also chose to give a few words regarding Take-Two’s market value, saying that “Take-Two remains dependent on a limited number of titles, and has limited capital resources. In addition, Take-Two faces ongoing financial, legal and operating issues and a very intense competitive environment.”
Read the full statement and letters here
