PS3 News: EA Proposes to Buy Take-Two/Rockstar for $2 Billion! - PS3 News

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EA Proposes to Buy Take-Two/Rockstar for $2 Billion!

  Even though it's the weekend, huge news has hit earlier today, all the way from the west. It comes from Electronic Arts in their Redwood City, California headquarters. EA has announced that they've made Take-Two Interactive a buy-out proposal - yes, that's right, a buy-out. And for how much? $2-billion. This would mean that EA would cough up $26 per each share of Take-2, and that's a 64% premium over what it's actually worth.

   The letter was sent on February 19 of this year. But, it should be noted that the offer was initially rejected by Take-Two Executive Chairman Strauss Zelnick, and so EA has decided to make this affair public, by making the proposal public knowledge, in hopes of having Take-2 shareholders take notice.

   Mr. Riccitiello said today: “Our all-cash proposal is a unique opportunity for Take-Two shareholders to realize immediate value at a substantial premium, while creating long-term value for EA shareholders. Take-Two’s game designers would also benefit from EA’s financial resources, stable, game-focused management team, and strong global publishing capabilities.”

   The proposal states that Take-2 may never get an offer this big ever again, and that they should reap the rewards now. In other words, cash out early, and don't take the risk. “There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today,” Mr. Riccitiello wrote. Hyperbole? Scare tactics? Fearing Grand Theft Auto IV will cast an enormous shadow over other games all year long? You decide.

   And Grand Theft Auto IV could perhaps be the reason why EA wants Take-2 so bad. It's currently the world's most popular console videogame franchise, and it isn't EA's. In addition to securing Rockstar, EA would also eliminate their biggest competition, the 2K Sports lineup. Because Take-2 owns 2K Sports and 2K Games, this would single-handedly eliminate EA Sports' competition, as 2K Sports publishes MLB, NCAA Basketball, NBA, NHL, and Top Spin (tennis) games.

   Take-2's lineup is only getting stronger, and it would also be a damn shame to see their sports games go. So let's hope they deny the buy-out once and for all, or pair-up with a publisher that isn't Electronic Arts. This industry needs as much competition as possible.

2/24/2008 Arnold Katayev

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Comments (10 posts)

fatchad420
Sunday, February 24, 2008 @ 7:50:10 PM
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Corporatism at it's best.

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Adam
Sunday, February 24, 2008 @ 8:54:23 PM
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Wow,when I seen this headline on PSX I literally messed myself.This has been my greatest fear.If EA doesn't get there act together and they get control of the GTA franchise I would be speechless.I'm just hoping that rockstar and take two don't decide to take back there decline and accept this.As an owner of every GTA game ever made I really hope rockstar/take-two make the right decision.

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OtisFeelgood
Sunday, February 24, 2008 @ 9:59:32 PM
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I hope Take Two/Rockstar and their shareholders dont fall for this shit.

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ArnoldK PSXE [Administrator]
Sunday, February 24, 2008 @ 10:59:49 PM
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They have flat out rejected the offer, thankfully.

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dillonthebunny
Monday, February 25, 2008 @ 1:25:28 AM
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you should all check out the forums here, I posted the whole letter from EA yesterday (UK time)...

It will be interesting what you all think of theletter, to me its almost like theyre saying their offer is the best they will ever get, and you know how you like to dance and play piano? well.. accidents do happen.

ok, ok.. so they dont actually say that,but it just reads very badly.
Its almost as bad as when Microsoft wanted to buy out Nintendo.. Nintendo probably still havent stopped laughing to this day, I hope that Take-Two feel the same.

Mind you, correct me if im wrong, but Take-Two dont own R* do they? so they may have publishing rights to a certain year in contract, but surely thats it?

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Gabriel013
Monday, February 25, 2008 @ 1:47:37 AM
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So this is how EA was going to increase their average game review score :D

Take Two have earned a few points here with gamers for not putting the shareholders first.

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Gamer X
Monday, February 25, 2008 @ 8:35:50 AM
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No, EA! No! Stop putting your hands into the cookie jar! *smack*

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MirrorSoul
Monday, February 25, 2008 @ 8:51:34 AM
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No...Noo.....EA Back up keep your greedy virus spreading hands off of Take-Two.........tryin to start a monopoly....No

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ThePoetRazel
Thursday, February 28, 2008 @ 4:59:26 PM
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A message to EA: Hey, if you want to be the top dogs in the games industry why don't you try making a good game? I know it's a revolutionary idea and kinda counter-intuitive, but your current strategy has already got some people talking of boycotting EA games. Remember, the Empire always gets defeated by the other guys (usually Jedis i believe).

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Subtracterall
Saturday, March 01, 2008 @ 1:49:01 PM
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electronic arts? more like electronic farts... lol

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