February 24, 2008

EA Proposes Takeover of Take-Two for $2 Billion

In a big move for the video game industry, EA has put up an offer to buy Take-Two studios for $2 Billion.

Take-Two's executive chairman, Strauss Zelnick denied the initial proposal, but EA is leaving the offer on the table and making it public hoping the shareholders may have a different view than Zelnick. EA Chief Executive Officer John Riccitiello had this to say:

"Our all-cash proposal is a unique opportunity for Take-Two shareholders to realize immediate value at a substantial premium, while creating long-term value for EA shareholders. Take-Two's game designers would also benefit from EA's financial resources, stable, game-focused management team, and strong global publishing capabilities."

So the deal appears to be in the hands of the shareholders as of now. I still can't help but think, would this acquisition be good for the industry? Would a buyout offer a good chance for the Take-Two teams to have more resources and a better financial backing? Or would it turn into what EA wants them to do and limit the freedom? Only the future will tell!

Source: EA Press Release

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