EA-Take-Two Deal Falls Through!

H

Homicidal Cherry53

ugh
http://www.gamespot.com/news/6197691.html

Nearly seven months ago, Electronic Arts went public with its intentions to acquire Take-Two Interactive, touching off a protracted back-and-forth saga between the two companies. Take-Two steadfastly insisted it was worth more than the initial $2 billion offer from EA, and EA resolutely refused to sweeten the pot. After months with little movement on the deal, EA agreed to enter formal discussions with Take-Two management in August.

Those discussions were ultimately fruitless, as Electronic Arts today announced that after "careful consideration," it has terminated those discussions and will not be making another offer to acquire Take-Two.
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Well, it looks like someone was finally able to resist a takeover offer. Even if this resistance was motivated by unbelievable greed, I still have to tip my hat to Take-Two for staying independent instead of being absorbed into EA.
 
Homicidal Cherry53 said:
http://www.gamespot.com/news/6197691.html

Well, it looks like someone was finally able to resist a takeover offer. Even if this resistance was motivated by unbelievable greed, I still have to tip my hat to Take-Two for staying independent instead of being absorbed into EA.
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I remember back wehn GTA 4 was only a few months from release, and EA was trying to grab them before the game sold to stick their hands into the bags of money that would come from the game.

Take Two KNOWS they're worth more then $2 billion, especially when they have one of the largest and most popular franchises on the market.
 
http://www.gamespot.com/news/6197700.html?tag=latestheadlines;title;1

Grand Theft Auto publisher's stock price drops 28 percent after would-be acquirer walks away from formal discussions.

Take-Two Interactive stock opened this morning's trading at $15.80, down more than $6 from its previous closing for a tumble of nearly 28 percent. The drop was the result of Electronic Arts announcing on Sunday that it was walking away from discussions to acquire the Grand Theft Auto publisher, and would not be making another offer.

Back in February, before Electronic Arts went public with its acquisition attempt, Take-Two Interactive stock was trading at $17.36. EA's original $2 billion offer worked out to about $26 per share, and the stock immediately soared to match that price. In the weeks surrounding the launch of Grand Theft Auto IV, Take-Two stock was actually trading higher than the offer, peaking just shy of $28.

While Take-Two stock has lost all those gains and then some, news out of the publisher since the original offer was made has been generally positive. In addition to the successful launch of GTAIV, Take-Two has posted a pair of glowing quarterly reports, the latest issued earlier this month.
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:-\
 
That is to be expected. The stock's price was driven up by the possibility of a merger so when that possibility disappeared, it dropped. Incidentally, it's probably a good time to buy Take-Two stock so you can ride the surge that will come with the next GTA game.
 
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