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Take-Two Spent Over $11 Million To Defend Against EA Takeover

Most gamers were happy to see Take-Two Interactive fend off Electronic Arts' takeover attempts earlier this year; it was like rooting for David vs. Goliath and it seemed like the right thing to do. But business isn't always so simple.

According to GameDaily, Take-Two spent around $11 million in fending off EA during the larger publisher's advances. EA was offering $25.74 per share while Take-Two continually maintained they were worth more than that, and as evidenced by a recent SEC filing, Take-Two spent that large chunk of cash to defend themselves. So said a Take-Two representative, the $11 million in costs was "related to the EA offer and our strategic review process." Now, some will say it was well worth the cost to remain independent and keep EA away, but don't tell that to Take-Two investors. The Grand Theft Auto publisher posted a $15 million loss for the fourth quarter, and that stock that was once north of $26/share (just after GTAIV launched), is now trading at just over $8/share. ...EA's $25.75/share offer isn't looking so bad now, is it? Of course, Take-Two does expect to rebound once more of their blockbuster titles hits shelves in 2009, but for the time being, investors aren't likely to be happy with the decision to defy EA. Then again, hindsight is always 20/20.

For the time being, the economy is causing a few problems for most publishers, so that certainly affects Take-Two to some extent. But on the other hand, one can only wonder where everyone involved would be if Take-Two had accepted EA's bid...

12/22/2008 John Shepard

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Comments (15 posts)

WorldEndsWithMe
Monday, December 22, 2008 @ 10:15:46 PM
Reply

They would have dumbed everything down with "mass market appeal"

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MetalHead09
Monday, December 22, 2008 @ 10:28:49 PM
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im real glad they stood their ground and held them off. maybe it will give other inependent companys to think twice before selling out to EA cause maybe they just wont have to yuh know.

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Qubex
Monday, December 22, 2008 @ 11:06:13 PM

I would have sold out and taken the cash... they will pay the price now! Economies will continue to contract, and people will continue to lose jobs... we will see it hitting hard mid 2009!

Q!

"i aM hOMe"

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MetalHead09
Tuesday, December 23, 2008 @ 11:16:42 AM

stay positive man and dont go jinxing anything, we could at any moment depending on what happens come out of the recession or get deeper into it so hope for the best and dont wish bad things like that.

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LightShow
Monday, December 22, 2008 @ 10:40:08 PM
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Whenever I think of all the heat EA takes I think of 2 games: Battlefield Bad Company and Mercenaries 2

Mercs 2 because it illustrates exactly why people don't like EA. I'm not sure what the real story is, but the whole title feels rushed and is plagued by general lack of polish; problems assigned (by the public) to publishers getting impatient and rushing a product out the door.

And then I think of BFBC (and along with this, Burnout Paradise), because it proves to me that either a) a studio can work within the time frame that seems to cause troubles to other studios or b) that EA knows who won't accept bullying to meet a deadline. Either way they were great games, and i play both regularly.

I wish Pandemic would have offered a better product. One can only hope that Mercs 3 will satiate my desires for quality, graphics, AND gratuitous destruction.

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Scarecrow
Tuesday, December 23, 2008 @ 12:04:18 AM
Reply

Oh sh**...
EA go owned

Last edited by Ben Dutka PSXE on 12/23/2008 12:42:40 AM

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SHADOW [Moderator]
Tuesday, December 23, 2008 @ 12:53:15 AM

no EA lucked out. If this continues then eventually Take 2 will have to sell for less than half of what EA offered.

Last edited by SHADOW on 12/23/2008 12:53:37 AM

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slayerkillemall
Tuesday, December 23, 2008 @ 4:06:51 AM
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I would have taken the money...

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GamerKid123
Tuesday, December 23, 2008 @ 6:28:28 AM
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Good one Take Two, EA would eat you up and poop you out right into the middle of the resession.

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seismictech
Tuesday, December 23, 2008 @ 12:26:04 PM

lol true.

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Deleted User
Tuesday, December 23, 2008 @ 7:17:50 AM
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Im happy they dident get them. But with things the way they are now they may have to overlook that again.

I just pray they don't ruin a perfect formula.

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Aftab
Tuesday, December 23, 2008 @ 8:01:35 AM
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11 million spent on what? It's not like they were fighting a court case. Were they simply paying EA off to extend the offer?

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MetalHead09
Tuesday, December 23, 2008 @ 11:19:57 AM
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time costs money and you have to include the man power and all the other little technical things that go into preparation for meetings and all that stuff. travel expenses, materials, im not a business man but it makes sense to me.

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Aftab
Wednesday, December 24, 2008 @ 8:20:47 AM

Take 20 bigsuits with an average of 200k salaries, and add another million of travel and lunch expenses, and you're still at less than half that unGodly number. I don't disbelieve it, but it's still a big surprise. Being in the midst of businesses, I am familiar, though, with contractual-agreement penalties, and offer-extension stipulations which must've had something to do with the $11 million. I can't think of anything else.

Last edited by Aftab on 12/24/2008 8:22:17 AM

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seismictech
Tuesday, December 23, 2008 @ 12:25:35 PM
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thank god, EA always find a way to fu** things up once they get a hold of a well established franchise series or IP.

knowing EA, they would probably force rockstar to make a new GTA every year to exhaust sales like with madden. that wouldn't work in my opinion.

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