EA Determined to Purchase Take-Two

Late last month, we posted about the desired takeover of Take-Two by EA, and since then, it hasn’t left the news. At all. I refused to post more about it since it’s rather boring, but now it’s beginning to get more interesting.

EA is getting impatient and we are coming down to a “take it or leave it” situation. For Take-Two’s shareholders, a take-over would be a good thing (especially on their pockets), but Take-Two themselves are remaining defiant. But EA is so determined, they have now gone straight-past Take-Two themselves and are targeting the shareholders directly.

EA’s deal is simple… to purchase all shares from the holders for $26 a pop. That figure was more impressive a few days ago, but now TTWO’s stock is almost at that point by itself, making the shareholders decision a little less easy. No one knows what will happen now, but EA is a powerful company are are unlikely to be defeated this easily. Either way, this is one show that’s getting fun to watch.

EA states that the offer represents a 64 percent premium over Take-Two stock price on February 15, but now the $26 bid sits at around 4.4 percent above the current price. The tender offer is scheduled to expire April 11, 2008, unless the tender offer is extended. The release of Take-Two’s largest title of 2008, Grand Theft Auto 4, will be hitting stores two weeks after the close of EA’s offer.

Source: DailyTech