Take-Two Makes Preparations in Case of Takeover
Just because we haven’t heard much more in the way of offers since Electronic Arts’ original bid to buyout Take-Two doesn’t mean that there aren’t wheels spinning. Earlier this month, Take-Two formed a severance plan to put the minds of employees at ease. The severance package would insure that any employees or executives that were fired without reason following a takeover would continue to be paid – up to six months’ salary for non-execs, while the suits would get up to 1.5 times their salary and bonus for up to 18 months.
Top executives such as Take-Two chairman Strauss Zelnick would not be impacted by this, as they’re already covered by a separate plan, according to Reuters.
“The bid probably created fairly large internal disruption and without a severance plan, employees are worried about losing their jobs,” said Janco Partners analyst Mike Hickey. “They want to keep people focused and give them some sort of support.”
So it would seem Take-Two is taking care of its employees, but that remains to be seen if stockholders are receiving positive treatment as well.