While Take Two boss Strauss Zelnick has said that the $2bn bid “substantially undervalues” the publisher’s portfolio, key analysts believe that Take Two is playing a dangerous game by rejecting the approach and holding out for a better offer.

TAKEOVER TIMELINE

February 6th:
EA CEO John Riccitiello writes to Take Two boss Strauss Zelnick, offering to acquire all of the outstanding shares of Take-Two common stock for $25 per share payable in cash. “Waiting for a later date leaves open significant uncertainty regarding the timing, the probability and the value of a potential transaction and is not in the best interests of either company or Take-Two's stockholders,” writes a confident Riccitiello.

February 15th:
Zelnick replies, confirming that Take Two’s position has not changed from previous discussions over an acquisition in 2007 – and thus the deal was rejected.

February 19th:
Riccitiello responds, stating that he is “disappointed” that Take Two turned the offer down and “declined to engage in the friendly negotiations proposed”. He then increases the bid to $26 per share in cash.

February 22nd:
Zelnick considers the new offer and concludes that “this is not the right time for Take-Two to enter into a negotiation to sell the company.” Another rejection.

February 24th:
EA goes public with its offer of $26 per share, or $2 billion in total. “There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today,” adds Riccitiello. Take Two terms the unsolicited offer “inadequate” and rejects EA’s approach, adding that it “substantially undervalues Take-Two's robust and enviable stable of game franchises.”