Gerard Posted March 13, 2008 Share Posted March 13, 2008 EA has made an appeal to Take Two's shareholders, offering them $26 per share to force the merger through without the consent of the company's board. Previously, Take Two's board repeatedly rejected takeover offers from EA, including one for $26 per share, which totals $2 billion USD, a premium over the current value of $15.83 per share which values the company at roughly $1.2b. The company has to issue a recommendation to its shareholders within ten working days. EA's CEO John Riccitiello encourages Shareholders to take advantage of the offer: "This is a great opportunity for Take-Two shareholders. We believe Take-Two investors will see our tender offer as the best way to maximize the value of their investment in Take-Two. This tender offer provides a clear process to complete the proposed transaction. For EA shareholders, the combination would add additional intellectual properties to our already strong portfolio and welcome Take-Two's talented creative teams to the great development organization we've built at EA." Take-Two previously commented that the offer undervalued the company and its assets, and it is obvious that the long-awaited much-hyped launch of GTA IV next month is worth a lot to the company. Take Two also said that other parties had approached it regarding a merger, but that it hadn’t entered into any negotiations with other companies about a deal. Our members discussed EA's previous offer with a resounding rejection of the takeover. It was felt that if Take Two was merged into EA, the Rockstar Games studios should remain separate (rather than be directly merged into EA) or turn independent. Voice your thoughts in our forums. Quote Link to comment Share on other sites More sharing options...
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