EA Renews Take-Two Buyout with $2 Billion Cash Offer
On Sunday, February 24, 2008, Electronic Arts announced that it was seeking to acquire Take-Two. After the company recently disclosed in their financial report a worsening financial picture, EA has jumped at a second chance to purchase a struggling publisher.
Electronic Arts today announced that the company has commenced a tender offer for all of the currently outstanding shares of common stock of Take-Two for $26.00 per share in cash. The offer is valued at approximately $2 billion and represents a 64% premium over Take-Two’s closing stock price on February 15, the last trading day before EA sent its revised proposal to Take-Two. According to EA, the offer is scheduled to expire at 12:00 midnight on Friday, April 11, 2008.
EA Chief Executive Officer John Riccitiello: “This is a great opportunity for Take-Two shareholders. 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. For EA shareholders, the combination would add additional intellectual properties to our already strong portfolio and welcome Take-Two’s talented creative teams to the great development organization we’ve built at EA.”