News
EA borrows $1bn to close in on Take Two
Tim Ingham May 11 2008, 1:09pm
Comments (4)
SEC filing reveals that publisher has secured cash to assist with bid for Rockstar parent
Electronic Arts has secured a loan of $1 billion to support its bid for Take Two, which is due to be concluded this Friday.
In a form filed with the SEC, EA said that it had received a commitment for up to $1 billion in 'senior unsecured term loan financing' to help with the acquisition.
The company said in the SEC filing that it had the money required to cover its $2.1 billion offer without the loan.
However, EA still borrowed the $1 billion sum from Morgan Stanley Senior Funding, Inc, Morgan Stanley Bank, BNP Paribas, BNP Paribas Securities Corp., The Bank of Nova Scotia and KeyBank National Association.
The money is available for the firm to use towards to Take Two bid until January 9th next year. EA will be required to pay back the loan with interest.
Comments
“maybe they can use the cash”
Posted by: Onehunglow - May 11, 1:19pm
to drop the price of Rock band.
“Re: maybe they can use the cash”
Posted by: George - May 11, 1:43pm
Maybe as EA are the distributor, not the developer or publisher, the price has nothing to do with them. MTV Games, who are responsible for setting the price, must be loving the fact that all of this fanboy vitriol has been deflected from them onto a company that are effectively acting as postmen.
“Re: maybe they can use the cash”
Posted: May 11, 5:05pm
Good point George, though, lets face it, the post has been getting really **** the past few years... ;)
“Re: maybe they can use the cash”
Posted by: Ryoga - May 11, 5:58pm
Why would Viacom use EA to purchase Take-2?