EA Extends Deadline, Take Two Still Not Taking Bait
Electronic Arts has generously extended the deadline on its offer to buyout Take Two to July 18th. The offer is an unsolicited attempt to strong arm T2 into selling that has been dragging on since February.
“Our offer price remains unchanged at $25.74 per share, which is a substantial premium to where Take-Two’s stock was trading prior to our offer,” said Owen Mahoney, Senior Vice President of EA Corporate Development. “We congratulate Rockstar on the successful launch of GTA IV but believe our offer reflects a full and fair price based on the long-term value of Take-Two’s entire operation.”
Take Two isn’t impressed and continues cross the line drawn in the sand.
“The latest extension of EA’s unsolicited, highly conditional tender offer does not alter the fact that their proposal still significantly undervalues Take-Two, a fact that is reflected in the overwhelming number of stockholders who still have not tendered their shares,” said Strauss Zelnick, Chairman of the Board of Take-Two. “Our Board of Directors remains in unanimous agreement that the proposal is contrary to the best interests of Take-Two stockholders, and the Board continues to recommend that stockholders not tender their shares to EA. The Board remains focused on the strategic process that began formally on April 30 to consider all alternatives to maximize value. We believe that these alternatives, which may include a business combination or remaining independent, will deliver greater value to stockholders than the current EA offer.”
Some companies just can’t take a hint. EA has assimilated so many different companies by now, it just can’t understand why T2 wouldn’t want to join the Collective. The whole situation is comical at this point and I find myself rooting for the underdog (not that there really is one). Obviously EA is just one of those companies that doesn’t know when to give up.