Take-Two Stock Prices Soar Following EA Buyout Offer
Chairman Stauss Zelnick and Take-Two may have rejected EA’s offer to buyout the company behind Grand Theft Auto, but that didn’t stop it from impacting stocks. EA had offered $26 per share, but Zelnick responded, “Electronic Arts’ proposal provides insufficient value to our shareholders and comes at absolutely the wrong time given the crucial initiatives underway at the Company.”
After today, $26 per share certainly is an insufficient value – Take-Two’s stock price jumped past $26 today. That’s roughly a 50% increase in value that surpasses the amount EA offered.
“We were shocked and awed by the offer, and our (recommendation to sell Take-Two stock) was wrong,” wrote Pachter. “We believe EA fully intends to complete this acquisition, and believe that Take-Two’s investors will decide that a sale is the best option for them.”
I agree with Pachter that it seems likely that EA has no intention of halting its attempt to acquire Take-Two simply because of this sudden increase in share value.
But the question remains: what impact would this have on the games industry?