Gaming News: Take Two Interactive To Sign Agreement With EA
Video game maker Electronic Arts Inc. on Monday urged the publisher of “Grand Theft Auto” to quickly accept its unsolicited $2 billion takeover bid, saying it’s only a matter of time before it declares “game over” and pulls its premium offer. EA wants an agreement on a deal before the release of “Grand Theft Auto IV.” Take-Two Interactive Software Inc. says it’s willing to talk, but only after the next installment of its popular crime game goes on sale in April. 1
In a separate statement, Take-Two confirmed that it expects to sign a confidentiality agreement with Electronic Arts allowing EA to enter into Take-Two’s formal process to evaluate strategic alternatives. Take-Two also affirmed that it is continuing its discussions as part of the process to maximize value for stockholders. 3
About Take-Two Interactive Software Headquartered in New York City, Take-Two Interactive Software, Inc. is a global developer, marketer, distributor and publisher of interactive entertainment software games for the PC, PLAYSTATION?3 and PlayStation?2 computer entertainment systems, PSP? (PlayStation?Portable) system, Xbox 360? and Xbox? video game and entertainment systems from Microsoft, Wii?, Nintendo GameCube?, Nintendo DS? and Game Boy? Advance. The Company publishes and develops products through its wholly owned labels Rockstar Games, 2K Games, 2K Sports and 2K Play, and distributes software, hardware and accessories in North America through its Jack of All Games subsidiary. Take-Two?s common stock is publicly traded on NASDAQ under the symbol TTWO. All trademarks and copyrights contained herein are the property of their respective holders. 6
Take-Two Interactive Software, Inc. today confirmed that it expects to sign a confidentiality agreement with Electronic Arts allowing EA to enter into Take-Two’s formal process to evaluate strategic alternatives. Take-Two also affirmed that it is continuing its discussions as part of this process to maximize value for stockholders. 4
Evan Wilson, a Pacific Crest Securities analyst, said the FTC might be a significant hurdle. He said Take-Two and Electronic Arts, which both have basketball and football games among their sports titles, have a near monopoly in the sports category, which he estimated constitutes 20 to 25 percent of software sales for video gameconsoles. 7
