EA and Take-Two Negotiating Behind Closed Doors
It’s unclear if the FTC’s now closed investigation was the only thing holding EA and Take-Two back from entering into negotiations, but regardless of that, an SEC filing made yesterday by EA has confirmed that the two companies have entered into a confidentiality agreement where Take-Two will reveal their three year product plans, according to Reuters. As a result, no further details on the negotiations will be revealed publicly unless the two decide to either end their discussions or formalize a deal.
The terms of the confidentiality agreement prohibit each of EA and Take-Two from, among other things, publicly disclosing the status or terms of any discussions or negotiations between EA and Take-Two unless EA or Take-Two notifies the other that it is terminating discussions. As a result, EA does not intend to make any further announcements regarding the status of any discussions or negotiations with Take-Two unless and until discussions between EA and Take-Two have been terminated or such parties have entered into a transaction. As previously disclosed, EA now requires due diligence to support any proposal to acquire Take-Two and there can be no assurance that any proposal, negotiations or transaction will result.
Once again, this doesn’t mean that an acquisition is imminent, but with EA having dropped its hostile takeover attempts and the two sides seemingly on the same page, the possibility of a buyout is as real as ever.