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EA strongarms Take-Two, goes public [Update] photo

Whoever said that weekends are slow apparently forgot to consult with CEO John Riccitiello. He drops the bomb on us this Sunday, going public with the news that EA is deadly serious about adding Take-Two to their portfolio of investments.

Although the previous bid was rebuffed privately, Riccitiello upped the ante by entering the public domain and offering $26 a share -- a premium of over 64 percent of Take-Two's current closing price. With that comes a stern warning:

"There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today."

If you missed the quiet undertones, it reads something down the lines of "join us, or you'll regret it, later." Are we about to enter an era of annual GTA games? Try and withhold your judgement long enough to browse the press release, straight from the horse's mouth. Also, hostile takeovers.

[Update: Take-Two fires back, shrugging off the offer as a "devaluation" of their real worth.]

[Via Next-gen]


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70 comments | showing # 1 to 50

casualweaponry's Avatar
casualweaponry at 02/24/2008 14:15
Great, another studio for EA to run into the ground.

Hopefully Take 2 will Poison Pill (wiki link) that shit.

God I hate EA.
BlackDove's Avatar
BlackDove at 02/24/2008 14:15
I wonder what the master plan is.

When everyone buys everyone. EA and Activision acquire everyone.

Then what?
Gameboi's Avatar
Gameboi at 02/24/2008 14:17
We will soon be one step closer to that vision of a one-world government.... I mean console ;-)
crunks's Avatar
crunks at 02/24/2008 14:22
One day Microsoft and EA will buy each other out. Two companies enter, one company leave.
leiden's Avatar
leiden at 02/24/2008 14:23
I hope most of you all die. EA isn't that bad, BioWare even says so.
Gameboi's Avatar
Gameboi at 02/24/2008 14:25
@leiden

A little harsh, don't you think?
Wedge's Avatar
Wedge at 02/24/2008 14:26
Take2 isn't a developer even, they're a fairly large publisher in their own right... bleh, messed up.

This would mean EA owning all of Rockstar, as well as Irrational and Firaxis.

I mean, how messed up would it be to have Firaxis/Microprose and Maxis under the same house?

The only interesting thing, is that Irrational would have access to the System Shock IP again, but after making Bioshock, I doubt they care.

Augh... no.. just no...
DaedHead8's Avatar
DaedHead8 at 02/24/2008 14:28
I'm not sure this is bad news. Yeah, EA growing is supposed to set an old school gamer like me into a tizzy. However I like this Riccitiello guy, he's got panache. I think he has wait it takes to make EA great again.
vexed alex's Avatar
vexed alex at 02/24/2008 14:28
@ casualweaponry

Has Harmonix been run into the ground? What about Criterion? You assume the worst because of their sports franchises.
DonWii's Avatar
DonWii at 02/24/2008 14:30
I'm with DaedHead8. No complaints here.
jdub28's Avatar
jdub28 at 02/24/2008 14:30
I was gonna make a joke about the next Elder Scrolls and Bioshock being roster updates, then it dawned on me. The big wigs at EA Tiburon recently left so 2k can slide right in and even though it will still say madden, we can get our beloved 2kfootball back (also MVP Baseball)!!!!!
Barcode's Avatar
Barcode at 02/24/2008 14:30
As I said in drMario1337 's blog:

In my mind. EA makes great games, but if they keep expanding, then how I are we, the consumers, going to benefit from a nearly monopolistic main stream video game industry?

Take-Two did a smart move of turning them down.
Tubatic's Avatar
Tubatic at 02/24/2008 14:36
@Wedge "I mean, how messed up would it be to have Firaxis/Microprose and Maxis under the same house? "

Holy Fuck, Batman
Novakaine's Avatar
Novakaine at 02/24/2008 14:37
leiden, vexed alex: Origin, Bullfrog, and Westwood prove otherwise.

If EA can prove us people (who have damned good evidence to resent their acquisitions) wrong that they can back up their lip-flapping and actually man up in game quality, and not murder great studios, we'll shut up. Until then, you're out of your mind if you think there's no reason to harbor very ill will towards EA.

Fuck the Empire of EA.
jdub28's Avatar
jdub28 at 02/24/2008 14:38
Just because EA is a single publisher doesn't mean the developers still won't have competition amongst them. No one wants they're development house closed, only to be thrown into making pogo games or something
leiden's Avatar
leiden at 02/24/2008 14:43
Mediocre evidence, imo.
jdub28's Avatar
jdub28 at 02/24/2008 14:43
Every one that is giving off the EA hate needs to get the picture. Activision is the one that picked up WoW (biggest cash flow in gaming) They produce the twice a year and once every year for since last century Guitar Hero and Tony Hawk games. They brought the studio developing one of the biggest hits in gaming (StarCraft 2 will be raking in money long after we have all %100-ed GTAIV, look at starcraft)

Why is EA an evil empire and Activison tH3 R0xx0rz
casualweaponry's Avatar
casualweaponry at 02/24/2008 14:46
@Vexed alex

Let's take a look at all of EA's casualties:

By Riccitiello's own admission, EA killed Origin, Bullfrog and Westwood studios.

Of course Criterion is alive. But Criterion's kickass middleware technology (Renderware) that powers Burnout as well as some of the GTA series is no longer used by the industry because no-one wants to deal with EA.

EA's a goddamn cancer on the game industry. Hopefully Take 2 will pull a poison pill and at the very least make EA overpay for it.

Nothing could can come from this takeover.
casualweaponry's Avatar
casualweaponry at 02/24/2008 14:47
*ahem*

Nothing good can come from this takeover.
drMario1337's Avatar
drMario1337 at 02/24/2008 14:47
I hope something good comes from this.
Timmeh's Avatar
Timmeh at 02/24/2008 14:50
"...join us, or you'll regret it, later..."

Now, I'm not a fan of EA acquiring every developer ever either but let's be honest, 64% is a pretty big premium to be offering on top of the price of their shares - the guy is simply saying that it's a once in a lifetime oppurtunity and one they'll likely not be offered again. Saying that's a threat is a pretty big stretch.

Oh and it's the 'ante' you up, not anti (yes I'm that pedantic xD)
septapus's Avatar
septapus at 02/24/2008 14:51
It's "ante" not "anti"...

Also, I'm sick of the joke everyone makes about EA pumping out a new version every year; only EA Sports does that! Give EA a break, they've come a long way in the past 5 years.
Gameboi's Avatar
Gameboi at 02/24/2008 14:53
Good catch, guys. I missed the ante.
jdub28's Avatar
jdub28 at 02/24/2008 14:54
Activision WORSE than EA

CoD5=WHY, WORLD WAR II, WHY

also, Guitar Hero rocks the 80's
also, also, every extreme sport from wake boarding to inline skating
Sadie G's Avatar
Sadie G at 02/24/2008 14:58
That's fucking weird to make a whole website about it...I'm sorry but this whole thing just gives off bad vibes.
Barcode's Avatar
Barcode at 02/24/2008 14:59
@jub,

What if EA is the one and only place you can go to publich your game? That means they can control how much it will cost to you. Wouldn't you want more publisher's to choose from so you can publish your game while getting the deal that works for you (cost wise)?
HarassmentPanda's Avatar
HarassmentPanda at 02/24/2008 14:59
I'm excited about EA for the first time ever in my long history of gaming. I've never been into sports title, but EA has been expanding it's IPs drastically and the new management really seems to be heading in the right direction.
HarassmentPanda's Avatar
HarassmentPanda at 02/24/2008 15:01
Also, with Take 2's history of stock fraud investors may be more comfortable with EA at the reigns.
Gameboi's Avatar
Gameboi at 02/24/2008 15:04
Not once, can I recall saying that I dislike EA. Other than sports titles, I've enjoyed several of their games over the years.

However, this bid is hostile. How could it be viewed as anything else?
jdub28's Avatar
jdub28 at 02/24/2008 15:07
@barcode

so why is it a problem only when ea does it? I'm sure if Activision or capcom went out and brought bungie tommorow every one would act like its christmas. If EA even looks at them wrong there will be an angry mob outside in minutes
Wedge's Avatar
Wedge at 02/24/2008 15:18
It's NOT a problem only when EA does it. Stop bringing up Activision, I don't recall anybody here saying they were awesome. They suck as well, and I don't think anyone was happy about the Vivendi/Activision/Blizzard beast.

Consolidation of an industry in general sucks. Just look at the telecoms in this country.
jdub28's Avatar
jdub28 at 02/24/2008 15:25
I didn't say it was good at all (except for my 2kfootball aspirations) but lets look at the WHOLE problem instead of demonizing one company
Perverted's Avatar
Perverted at 02/24/2008 15:40
For the ca$h EA is offering they'd be stupid not to except it...And the last time I checked you get cookies when you join the dark side. It's a win-win situation for Take-2.
BluFire's Avatar
BluFire at 02/24/2008 15:41
If I were Take-Two, I'd wait until after GTA4 comes out. That way the moneys can go to them, plus EA has to raise their asking price since their stock is going to go up.
Timmeh's Avatar
Timmeh at 02/24/2008 15:51
BluFire, I would imagine that the release of GTAIV has been considered by EA (hence the repeated mention of it in their letter) and part of the deal may be that an agreement is reached before GTAIV is released. I can't see them offering way over the odds for shares and then letting GTAIV pass by as it's pretty much a license to print money.
RWarrior1CO's Avatar
RWarrior1CO at 02/24/2008 15:52
Well, at least EA doesn't have its own console system yet.
Necros's Avatar
Necros at 02/24/2008 15:55
While my optimistic side hopes that any takeover would result in a Harmonix or Bioware-style set-up, where they're still allowed to more or less do what they want, my pessimistic side secretly knows that this would be terrible for the industry. Take Two is just too powerful to be under EA's rule.
Samit Sarkar's Avatar
Samit Sarkar at 02/24/2008 15:59
I kind of agree with Gameboi here. While I don’t think EA is an evil empire, maybe Take-Two doesn’t want to be bought out. That’s like someone saying, “I’ll give you $400 for your Dreamcast.” If it was very near and dear to your heart, you wouldn’t do it, no matter how much they raised their offer.
SFLUFAN's Avatar
SFLUFAN at 02/24/2008 16:06
Well, at least EA doesn't have its own console system yet.

Anyway, T2 has just issued a rejection of the EA offer:

http://ir.take2games.com/ReleaseDetail.cfm?ReleaseID=295739

Doesn't mean this matter is closed, not a by a longshot.
DrkAdonis's Avatar
DrkAdonis at 02/24/2008 16:07
Holy multiple-comments, RWarrior1CO. Sheesh.
YARLY's Avatar
YARLY at 02/24/2008 16:22
With the industry stagnating enough as it is, I'm really glad that Take-Two refused (for now). The less competition there is, the more it'll hurt the consumers.
Mr Bas's Avatar
Mr Bas at 02/24/2008 16:23
We know that EA isn't as bad as everybody says, the problem is that this way, it's more like they're "destroying" the free market. More competition, better games, simple as that.
Sam Spectre's Avatar
Sam Spectre at 02/24/2008 16:23
Well, at least EA doesn't have its own console system yet.
Jetsetlemming's Avatar
Jetsetlemming at 02/24/2008 16:29
Oh FUCK no. Yeah yeah yeah, EA's a good guy now, they've made amends, they promise to be good little boys from now on, but jesus fucking christ NO. The less consolidation in this industry the better, and that's a time honored rule that has yet to be proven wrong. At the bottom line, gamers suffer when one company buys out another, especially when one giant company buys out another.
The more varied and spread out our developers, publishers, and producers are, the better, and that's completely ignoring EA's past behaviors.
As far as I'm concerned, this action is in exact opposition to the earlier claims that they've learned their lessons and are going to play nice from now on.
Novakaine's Avatar
Novakaine at 02/24/2008 16:41
Well, at least EA doesn't have its own console system yet.

jdub28: People get hostile at EA because they've annihilated great studios. Until a third-party superpower like Activision or such builds up such a horribly incriminating track record like EA has, EA will continue to receive such animosity because they've totally earned it.
Release82's Avatar
Release82 at 02/24/2008 16:47
As long as they leave Rockstar alone to do whatever they want, its all good with me.
Bloody Splicers's Avatar
Bloody Splicers at 02/24/2008 17:00
Samit Sarkar's Avatar
Samit Sarkar at 02/24/2008 17:05
Re: Take-Two’s rebuttal...that’s exactly what I was talking about. The offer was unsolicited, meaning that EA just said, “Hey, we’re going to buy you out, whether you want to be bought out or not.” That’s the issue here.
SantanaClaus89's Avatar
SantanaClaus89 at 02/24/2008 17:20
I blame this whole thing on Madden. "Damn you!!" (shakes fist in anger)
Samit Sarkar's Avatar
Samit Sarkar at 02/24/2008 17:31
@SantanaClaus89: I blame it on the special sauce (shameless plug!).
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