EA starts what some consider ‘hostile’ takeover of Take Two
Electronic Arts has made a tender offer to buy all outstanding stock for $26 each. The cash bid is approximately $2 billion.
According to the Wall Street Journal , “the move signals that EA’s attempt to gain control of Take-Two, publisher of the blockbuster Grand Theft Auto game, is turning hostile”.
Take Two’s share price did drop the other day because of the announcement of fiscal quarter one net loses. The stock price was listed yesterday at $24.91. Which is below the $26 that EA is offerring.
“We believe Take-Two investors will see our tender offer as the best way to maximize the value of their investment in Take Two. This tender offer provides a clear process to complete the proposed transaction,” said John Riccitiello, EA’s chief executive.
We’ll be watching to see what happens. Take Two has 10 days to respond and is telling shareholders to not take any action.