EA Responds to Take-Two’s “Show Me The Money” Request for Take Over
by Chad Lakkis on August 18, 2008 at 3:41 pm
As reported earlier, Take-Two has allowed EA to join the company for some “alternative strategic planning” sessions. In short, Take-Two believes that EA’s initial offer was not lucrative enough, and has shifted focus in an effort to convince EA that they should sweeten the deal.
Could a SackBoy PowerPoint type presentation change the minds of EA executives? The two emails featured after the jump showcase yesterday’s email from Take-Two to EA, and today’s response from EA to Take-Two.
August 18, 2008
Dear Strauss:
Thank you for taking my call on Friday and for your response letter on August 17, 2008. As discussed on Friday, given the passage of time, we have to validate the assumptions used in the model to support our offer price of $25.74 per share in cash.
In addition, we no longer believe we can integrate Take-Two ahead of the important holiday season. Accordingly, we require due diligence to support a transaction and are therefore letting the tender offer expire tonight.
However, we are pleased to accept your offer to review your management presentation as outlined in your letter. We continue to have great respect for Take-Two’s creative teams and products and are hopeful that we can work together to reach a mutually agreed transaction.
Sincerely, /s/ John Riccitiello John Riccitiello Chief Executive Officer
Below is the text of the letter sent yesterday by Mr. Zelnick to Mr. Riccitiello:
August 17, 2008
Dear John:
Thank you for your recent expression of interest for Electronic Arts Inc. (”EA”) to participate in Take-Two Interactive Software, Inc.’s (the “Company”) formal process to evaluate the Company’s strategic alternatives. As you know, we have been willing to have EA participate in this process following the successful launch of GTA IV, and we are happy to include EA now.
As I mentioned when we spoke on Friday, our process begins with an in-depth management presentation. The Company has made significant strides since EA first expressed interest in the Company and this presentation includes material non-public information to which you would not otherwise have access, including information relating to our three year product release schedule and management’s financial projections.
The presentation also includes information about the underlying factors that have driven our strong operational and financial performance. I believe our presentation will enable you to understand better the value of our Company to EA. Prior to the management presentation, we will only require EA to enter into a confidentiality agreement.
The agreement would be limited to provisions required to comply with federal securities laws and to ensure the Company’s ability to protect the confidentiality of the information shared with you. I can assure you that this requirement is the same as or more favorable to EA than that which we have employed with all other participants in the process.
We understand that a number of months have passed since you first expressed interest in the Company and, accordingly, we will act quickly to assist you in moving through our process. Once we execute a confidentiality agreement, we are prepared to schedule the management presentation immediately.
With my best personal regards.
Sincerely, /s/ Strauss Zelnick Strauss Zelnick Executive Chairman of the Board
Source: IGN
 |
|
|
Related Posts:
- Show Me the Money: Former Executive Sues Take Two for $50 Million
- Sony Responds to Microsoft’s LithGoW Announcement with… LithGOW?
- The Golden Eye Has Closed?
- December is X-Play Holiday Special Month
- Microsoft responds to Obama’s Xbox Comment
- Fan of Dedicated Servers Sends DICE 60 Bucks
- EA Sports Responds to Tiger Woods Glitching “Jesus Shot”, Proof Tiger Walks On Water
- PS3 Review: Smackdown vs. Raw 08
No Comments » |
