EA Abandons Pursuit of Take-Two
After a management presentation and review of materials, the EA/Take-Two saga is officially over
by James Brightman
After months of trying to buyout GTA publisher Take-Two (with a hostile bid and then friendlier behind-closed-doors negotiations), Electronic Arts today officially walked away from Take-Two. In a curt statement, the company said that though it “continues to regard a bragging regard for Take-Two’s creative teams and products, after careful moment, including a management presentation and reconsider of other due diligence materials provided by Take-Two Interactive Software Inc., EA has decided not to make a proposal to acquire Take-Two and has terminated discussions by Take-Two.”
EA CEO John Riccitiello commented, “EA is tracking toward a record breaking year. We’re launching 15 new games including award-winners like Spore, Dead Space and Mirror’s Edge, great new titles from the Sims, new group of genera titles with Hasbro, and the highest quality slate of EA Sports titles steady this generation of consoles. We’re also expanding across our core business with a line of direct-to-consumer launches including Warhammer Online.”
As Take-Two has aforesaid all along, EA wasn’t the only company it’s been talking to. Take-Two could still end up being purchased; it just won’t be EA.
Strauss Zelnick, Chairman of the Board of Take-Two, stated, “We remain focused on creating value for our stockholders and our consumers. This has been our post since EA launched its depending on conditions and unsolicited bid six months ago, a wish which was repeatedly rejected by our stockholders. As part of that committal, we remain actively engaged in discussions with other parties in the context of our formal process to consider strategic alternatives. We’re especially vain of the success we’ve enjoyed over the past eighteen months and we last confident in our ability to generate value for stockholders.”
Ben Feder, Take-Two’s CEO, added, “Take-Two’s business has continued to strengthen since the time EA capital made its offer. We have delivered terrific products to our consumers and we’ve been rewarded through very strong financial accomplishment. We have an exciting future ahead of us, powered by our profitability, a significant cash doctrine, the absence of debit, an undrawn credit facility and a tremendous lineup of games. We are confident in the unique equivalent of our business given our intoxicating circumstances in what is a growing and dynamic sedulousness.”
A account of analysts had said they thought EA would eventually prevail in its bid for Take-Two. Wedbush Morgan’s Michael Pachter earlier this month said he “remains convinced” that a deal would earn done.
