We store cookies, you can get more info from our privacy policy.

EA Wants Take-Two Before GTA IV Ships

by Les Thomas - February 25, 2008, 9:08 am PST
Total comments: 31 Source: Business Wire

Electronic Arts pushes buy-out offer on Take-Two Interactive.

For weeks, there have been rumors speculating that Take-Two Interactive would be subject to an acquisition bid. Many thought Viacom would seek to buy them out at a one-time price of $1.5 billion. It turns out Electronic Arts wants Take-Two shareholders to part at $25 a share, roughly a $2 billion dollar deal. Take-Two swiftly rebuffed the idea, so EA offered them a $1 more a share, warned them about their financial future, and went public with the entire negotiation, contrary to their original pledge not to.

EA corresponded with commands, while Take-Two remained cordial and steadfast. Clear in all of EA's communications is that this deal needs to happen before Grand Theft Auto IV ships. Take-Two responded on time with a dismissal. EA retorted with the $26 a share, your future is doomed, so cave in before you ship GTA IV deal. Everyone's expectations of GTA IV are high, so it's no surprise that Take-Two agreed only to talk after the game ships.

EA highlighted their main talking points to Take-Two:

  • There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today. We place significant value on the ability to close the transaction relatively quickly so that EA’s strong publishing and distribution network, including our global packaged goods, online and wireless publishing organizations, can positively impact the catalogue sales of GTA IV and also the launch and sale of titles released later this year. We want to work with you and your team to complete the transaction in time to begin realizing its significant marketplace benefits in advance of this year’s holiday selling season.

  • We believe Take-Two’s current share price already reflects investor expectations for a strong release of GTA IV as well as the longer-term issues that Take-Two faces. Once GTA IV ships, Take-Two will again be dependent on less-popular titles and face increasing challenges to compete with larger and better-capitalized competitors.

  • With GTA IV shipping on April 29, development on this important title must now be essentially complete. We believe now is the right time to complete a transaction with minimal disruption for Take-Two.

Take-Two felt that Electronic Arts was "undervaluing" their company, being opportunistic in their timing, and thoroughly irresponsible to engage until after their prize title ships.

The entire contents of the companies' correspondence are available at businesswire.com.

Talkback

darknight06February 25, 2008

So this is the "great console industry" everyone talks about.  They already own Park Place and now they're trying for Boardwalk.  (starting conspiracy theory time) It almost makes me think these guys are setting up the steps to an eventual EA branded console.  That thing would have a lot of major exclusives out of the starting gate if they did something like that. (ending conspiracy theory time)

PlugabugzFebruary 25, 2008

If EA buy Take Two then the industry will become a whole lot more boring.

Imagine Rockstar WITHOUT the controversy. Stone dead boring!

DAaaMan64February 25, 2008

Quote from: Plugabugz

If EA buy Take Two then the industry will become a whole lot more boring.

Imagine Rockstar WITHOUT the controversy. Stone dead boring!

I think Rockstar has a certain arrogance, so I'd love to see them removed from their high chair. They are probably actually a bunch little winers anway.

Smash_BrotherFebruary 25, 2008

Quote from: darknight06

(starting conspiracy theory time) It almost makes me think these guys are setting up the steps to an eventual EA branded console.  That thing would have a lot of major exclusives out of the starting gate if they did something like that. (ending conspiracy theory time)

The only console to have:
-Madden
-Tiger Woods
-Many other sports franchises I can't be arsed to look up
-GTA
-Bioware RPGs
-Rockband

...Would be a pretty formidable console.

I don't think your theory is far-fetched at all, and the thought of it scares the hell out of me.

EA is a bit like "The Blob": you have this massive entity with smaller entities floating around inside of it. Whenever a game is released, you have no idea which entity inside is responsible for it, and it makes it impossible to guess the quality of the game based upon the track record of the developer.

DAaaMan64February 25, 2008

Quote from: Smash_Brother

Quote from: darknight06

(starting conspiracy theory time) It almost makes me think these guys are setting up the steps to an eventual EA branded console.  That thing would have a lot of major exclusives out of the starting gate if they did something like that. (ending conspiracy theory time)

The only console to have:
-Madden
-Tiger Woods
-Many other sports franchises I can't be arsed to look up
-GTA
-Bioware RPGs
-Rockband

...Would be a pretty formidable console.

I don't think your theory is far-fetched at all.

I wouldn't buy it.

GoldenPhoenixFebruary 25, 2008

Quote from: Smash_Brother

Quote from: darknight06

(starting conspiracy theory time) It almost makes me think these guys are setting up the steps to an eventual EA branded console.  That thing would have a lot of major exclusives out of the starting gate if they did something like that. (ending conspiracy theory time)

The only console to have:
-Madden
-Tiger Woods
-Many other sports franchises I can't be arsed to look up
-GTA
-Bioware RPGs
-Rockband

...Would be a pretty formidable console.

I don't think your theory is far-fetched at all, and the thought of it scares the hell out of me.

EA is a bit like "The Blob": you have this massive entity with smaller entities floating around inside of it. Whenever a game is released, you have no idea which entity inside is responsible for it, and it makes it impossible to guess the quality of the game based upon the track record of the developer.

That list doesn't look any worse than the franchises Nintendo has. What makes Nintendo the "better company" than EA? Personally I don't care, maybe if EA bought Take-Two they could actually put some talent on the Rockstar team.

Smash_BrotherFebruary 25, 2008

A lot of people would buy such a console for Madden alone and with the newfound casual appeal of games like Rockband, EA could probably put out a console which the American audience would completely devour.

ShyGuyFebruary 25, 2008

Would this mean GTA is coming to the Wii?

Dirk TemporoFebruary 25, 2008

I'm glad Take Two told them to shove it. EA needs to piss off.

Uncle BobFebruary 25, 2008

Let's pretend EA did buy out TakeTwo and made their own system -with all their titles being exclsusive.

Nintendo would survive. They survived without any real EA/T2 support with the N64, GameCube, GBA and DS - and to some level, on the Wii.  Would Sony and MicroSoft fare as well?

GoldenPhoenixFebruary 25, 2008

Honestly I would not mind if EA got into the console battle, it would be nice to see another game centric developer take on Nintendo instead of companies like Sony and MS who see gaming as just one of their many divisions.

NinGurl69 *hugglesFebruary 25, 2008

I want Brawl before it ships.

CalibanFebruary 25, 2008

What does this news have to do with Nintendo? It's not like we're getting GTA4, Bioshock, or...whatever else Take2 has planned for the HD consoles.

If this would mean EA would have the MLB license back and could make MVP Baseball again I'm all for it.

EnnerFebruary 25, 2008

Caliban: Take Two has Bully for Wii lined up, if I recall correctly. Even without that, maybe the EA side of things makes it a relation since EA has some games for the Wii.

As for an EA console, I'd probably get one since I can't go without new Burnout to play. At least not yet...

It wouldn't make sense for EA to make their own console. Microsoft has lost tons of money in their Xbox program and are only starting to turn a profit now, years later, and the same would happen to EA. Also, EA would make more money from the games they publish if they publish for everyone instead of just their own console.

NinGurl69 *hugglesFebruary 25, 2008

Would EA's games improve if they were only made for one system?

CalibanFebruary 25, 2008

Pro666 makes a good point. No competition for EA would probably mean they could slack even more.

GoldenPhoenixFebruary 25, 2008

Quote from: Caliban

Pro666 makes a good point. No competition for EA would probably mean they could slack even more.

Not really, they would still have competition with Nintendo, MS and Sony. Don't forget Sega, after they got out of the console business their quality plummeted. Personally I think it gives you MORE incentive to create a better product.

CalibanFebruary 25, 2008

That's why I used the word "probably". It wasn't a definitive statement.

nickmitchFebruary 25, 2008

First Yahoo rejects MS, now T2 rejects EA? Does no one love a good corporate take over any more?

darknight06February 25, 2008

"Pro666 makes a good point. No competition for EA would probably mean they could slack even more."
Not if they want their name dragged through the mud even more than it is now.

I didn't say it would happen immediately, it probably wouldn't happen for another year and a half to two if it were.  No matter what though, I can see this whole deal being really nasty for sports fans who liked the 2k series of games, especially football and basketball fans.  They're probably more willing to acquire Take Two for 2k games' Bioshock and stuff than anything else.  Would they incorporate 2k ideas into Madden and Live?  A couple maybe, but don't expect too much.

If EA did make a console though, I'm quite sure that their whole NFL license deal would have to be completely dropped.  Now this actually doesn't sound all that bad until you consider this, who else besides EA and 2K made sports games worth a damn?  Sony has MLB, but what else?  Microsoft's games didn't stand up to them either.  Nintendo doesn't even have a realistic sports lineup.  No other consoles would have the Sims, Burnout series, Need For Speed series, Skate series, Rockband series, Black, Metal of Honor, Command and Conquer, the list goes on and that's without considering the Take Two stuff if they acquire them or any new franchise they make to attempt to broaden their game library.

KDR_11kFebruary 25, 2008

I don't think EA will make their own console, it'd increase the barrier of entry for their games and would put all of the hardware expenses on them. That's just a hassle and not profitable.

Termin8AnakinFebruary 26, 2008

EA Hardware? They made the 3DO....well....Trip Hawkins did anyway.

But if they were to get into it again...it'd probably be called 'Patriot by EA - The All-American Video Games Platform' - and you must say it in full each time.

I'm pleased T2 flat out refused EA. Can you imagine a YEARLY installment of GTA? And imagine the cross-over mayhem...

that Baby guyFebruary 26, 2008

We practically get a yearly installment of GTA with the PSP versions of the game included, but yes, this is likely better for everyone.

KDR_11kFebruary 26, 2008

EA will turn GTA into an urban gangsta-style game with hiphop, pimping your car and illegal stuff. Oh, wait, GTA already is like that.

Shift KeyFebruary 26, 2008

Quote from: KDR_11k

EA will turn GTA into an urban gangsta-style game with hiphop, pimping your car and illegal stuff. Oh, wait, GTA already is like that.

Waiting on GTA Cribs, the game where you pose for the camera in front of furniture and score points based on how "wack" you are.

CalibanFebruary 26, 2008

Quote from: darknight06

"Pro666 makes a good point. No competition for EA would probably mean they could slack even more."
Not if they want their name dragged through the mud even more than it is now.

They seem to like it sometimes.

PlugabugzFebruary 26, 2008

I'm curious. If yahoo and microsoft = Microhoo! then what does T2 and EA make?

NinGurl69 *hugglesFebruary 26, 2008

TEA for 2

KDR_11kFebruary 27, 2008

Quote from: Plugabugz

I'm curious. If yahoo and microsoft = Microhoo! then what does T2 and EA make?

EA

Got a news tip? Send it in!
Advertisement
Advertisement