An exchange of letters between EA CEO John Riccitiello and executive chairman of the board of directors of Take Two Strauss Zelnick has led to the agreement after EA concluded that any proposed acquistion could not be completed before the holiday season.
“We no longer believe we can integrate Take-Two ahead of the important holiday season,” says the letter to Zelnick from Riccitiello. “Accordingly, we require due diligence to support a transaction and are therefore letting the tender offer expire tonight. However, we are pleased to accept your offer to review your management presentation as outlined in your letter.”
Zelnick responded: “Thank you for your recent expression of interest for Electronic Arts to participate in Take-Two’s formal process to evaluate the Company's strategic alternatives.”
“As you know, we have been willing to have EA participate in this process following the successful launch of GTA IV, and we are happy to include EA now. As I mentioned when we spoke on Friday, our process begins with an in-depth management presentation.
“The Company has made significant strides since EA first expressed interest in the Company and this presentation includes material non-public information to which you would not otherwise have access, including information relating to our three year product release schedule and management's financial projections.”
“The presentation also includes information about the underlying factors that have driven our strong operational and financial performance. I believe our presentation will enable you to understand better the value of our Company to EA.”