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Take-Two Rejects EA...Again

Well, looks like EA is going to have to head back to the drawing board if they intend to purchase Take-Two Interactive. Flying in the face of most every analyst prediction, the Grand Theft Auto publisher has once again refused EA's offer.

According to MarketWatch, Take-Two's Board of Directors have officially announced that it has "thoroughly reviewed Electronic Arts Inc.'s unsolicited conditional tender offer with the assistance of its financial and legal advisors and unanimously determined that the $26.00 per share cash offer is inadequate in multiple respects and contrary to the best interests of Take-Two's stockholders." Whew, that's quite the mouthful! But that statement says it all, and there doesn't seem to be any leeway in their decision. In addition, Take-Two has advised its shareholders not to tender any of their shares to EA, and the board is unanimous in this, as put forth by the Schedule 14D-9 they filed yesterday with the Securities and Exchange Commission.

If you want to see more of the technical jargon, check out the full information here. It seems Take-Two is looking for alternative answers to their situation, but we get the feeling EA isn't going away that easily...

3/26/2008 Ben Dutka

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Comments (10 posts)

Zapix
Wednesday, March 26, 2008 @ 10:13:47 PM
Reply

Awesome! Glad to see Take2 is holding their ground. They have alot of potential on their own, and without EA, they are about to release, what?, the biggest game of the year? That says something about smaller companies! Take2 will hopefully remain independent so they can continue to develop and create games that are in competition with others than one company owning them all.

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monomilkman
Wednesday, March 26, 2008 @ 10:15:38 PM
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wooo go Take2, we should all send them emails telling them to keep up the good work and let them know we are behind them, its time for the videogame giant to be slain

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Mystearica
Thursday, March 27, 2008 @ 12:40:29 AM
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I'm glad to see T2 stand strong against this horrid goliath!

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fatchad420
Thursday, March 27, 2008 @ 1:00:29 AM
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YOU....GOT.....PWNED!

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StrategicGnomer
Thursday, March 27, 2008 @ 1:37:24 AM
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They're not going to reject EA forever though, I wish they would but judging from their response they're just being cocky and are holding out for more cash. They know EA is desperate for GTA and wants it before the release so either T2 is going to hold out until after the release so as to reap in the cash from opening day sales or they're going to sell just before for around $30. I seriously doubt they will hold out forever against EA. Money talks and they're listening.

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LegioN
Thursday, March 27, 2008 @ 2:59:36 AM
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Oh please, someone else come and give Take Two a hand, ANYONE but them. Don't give up T2 you have all the GTA fans backing you. Don't fall prey to those money hungry fat men in suits who eat other games and never make anything good themselves! >:(

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ThePoetRazel
Thursday, March 27, 2008 @ 4:01:30 AM
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Take Two is a great company that has EA shaking in their boots right now. T2 will do far better by carrying on than by selling out. The quick cash option is the weaker one by far.

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dillonthebunny
Thursday, March 27, 2008 @ 8:59:03 AM
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yeh, Sony need to step in, buy TT and give them total independence.. not that it will happen, but that would be nice.

personally i feel that when GTA4 dies down EA wont be as interested as much as they are now, so it will be interesting if and what they say in 6 months time.

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dark1der
Friday, March 28, 2008 @ 2:47:42 PM
Reply

No one cheer yet. If you read the full report you will find T2's intent.

--The timing of the EA Offer is opportunistic. The EA Offer is opportunistic and has been timed to take advantage of the upcoming release of Grand Theft Auto IV, one of the most valuable and durable franchises in the interactive entertainment software industry and the Company's biggest selling and most profitable franchise. EA launched an unsolicited bid for the Company even though the Company had extended an offer to negotiate with EA immediately following the release of Grand Theft Auto IV and, subject to the fiduciary duties of the Board of Directors, offered not to negotiate with any other third parties in the interim without first contacting EA. The Board of Directors believes the full commercial potential of the game will not be evident until after its release, and that the EA Offer was timed to capture the value of that anticipated commercial success at the expense of the Company's stockholders.

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Supes
Friday, March 28, 2008 @ 3:32:27 PM
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T2's market price already reflected the anticipated # of GTA copies that will sell. If its sales beat expectations by a wide margin, then yes - their share price will slightly increase. But not by much. Oh, and the main reason T2's stock is so high right now is because of EA's offer, people have been buying their stock in anticipation of another larger offer by EA. It was hovering around $17/share before the EA offer then rocketed to $26 after the buyout offer was announced.

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