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Take-Two Rejects EA's Bid

Take-Two Interactive has officially rejected a hostile $2 Billion cash bid from Electronic Arts, saying it undervalues its "enviable stable of games franchises". In their official response, Take-Two seems to imply the EA proposal was timed to take advantage of the upcoming Grand Theft Auto IV game which has been one of the world's most successful game franchises. Whatever the case may be, Take-Two did say that they were willing to sit down with EA at a later date to continue discussion.

After careful evaluation, the Board has determined that EA's proposal substantially undervalues Take-Two's robust and enviable stable of game franchises, exceptional creative talent and strong consumer loyalty. We believe EA's unsolicited offer is highly opportunistic and is attempting to take advantage of our upcoming release of Grand Theft Auto IV, one of the most valuable and durable franchises in the industry. Furthermore, the offer values the Company at a significant discount to its public peers and does not compensate Take-Two for its intrinsic value and the substantial synergies that the proposed combination would create.

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Posted by | Mon, Feb 25, 2008 - 10:37 AM