Home / Business / EA launches new $2bn cash bid for Take Twos stock

EA launches new $2bn cash bid for Take Twos stock

Electronic Arts is targeting Take Two’s shareholders with a tender offer to acquire outstanding stock for $26 each – the price it offered the company in its

buyout bid last month

.

The cash bid is worth $2 billion.

According to the Wall Street Journal , ‘the move signals that EA’s attempt to gain control of Take-Two, publisher of the blockbuster Grand Theft Auto game, is turning hostile’.

Take Two temporarily traded above the $26 a share that EA originally offered, but its share price later dipped below the price. Its stock traded at 4 pm yesterday at $24.91, up 26 cents, on the Nasdaq.

Take Two has consistently rejected EA’s $1.9 billion offer as undervalued and ill-timed. Chairman Strauss Zelnick has since shown a keen interest in keeping the company independent.

The publisher announced yesterday that the Grand Theft Auto series had sold more than 66 million copies in its history.

"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," said John Riccitiello, EA’s chief executive.

About MCV Staff

Check Also

Magic Leap sues former engineer over ‘striking similarities’ of competing XR device

Tech company sues for fraud, unfair competition, and breach of contract