News
EA's Take Two bid ‘the most hostile in history’
Tim Ingham Mar 20 2008, 9:18am
Comments (4)
Takeover bid sets a new precedent in the games industry, analyst claims
Leading financial observers are agreed: the video games industry has never seen an M&A move anywhere near as aggressive as Electronic Arts’ hostile bid for Take Two.
The fascinating story of EA CEO John Riccitiello’s one man mission to secure the acquisition took a further turn this week, as it emerged opportunistic market players have swept in to snap up stock of Take Two in the last month – and could challenge EA’s hostile tender bid of $26 per share.
EA went direct to Take Two’s shareholders with the offer last Thursday, after the publisher’s Board branded a $2 billion bid “inadequate”.
“This is the most aggressive approach for a publisher ever – there simply haven’t been hostile takeovers in the games space,” DFC Intelligence president David Cole told MCV.
“I don’t recall ever seeing a hostile takeover in games,” added Wedbush Morgan’s Michael Pachter. “I think Take Two’s Board will try to squeeze more money out of EA by making this a friendly deal.”
Comments
“Monopoly Commission?”
Posted by: Dildo Faggins - Mar 20, 3:59pm
Aren't there anti-monopoly laws against this sort of thing?
EA will basically own the biggest franchise in games. As well as a tonne of others. Surely there's a point where the monopolies commission steps in and says no?
“Re: Monopoly Commission?”
Posted by: d - Mar 20, 7:50pm
monopoly is when you are the only one in the market, it is not about being the largest in the market.
“Re: Monopoly Commission?”
Posted by: moat123 - Mar 20, 8:32pm
EA may have the biggest crank on the planet but they dont know how to use it, they make some of the worst games out there. Function over form anyday
“Re: Monopoly Commission?”
Posted by: Dylan epp - Mar 24, 9:18am
I hate EA, there like the spoilt playground bully.