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Rumor: Take-Two buyout news coming Monday
Lazard Capital Markets' Colin Sebastian issued a note on EA's financial statement last night claiming new information regarding the buyout of Take-Two Interactive would be forthcoming Monday. Sebastian, a known analyst with his ear to the "gaming industry grindstone," has been at the forefront of comments regarding a possible EA buyout since the first offer was made in April."Expect [an] update on TTWO bid by Monday morning," Sebastian noted. "We continue to believe that the current offer of $25.74 per share would be accretive to earnings for Electronic Arts, as well as fill several meaningful product gaps."Last month EA extended its tender offer deadline from April 30 to May 16. The offer, if approved, would see Electronic Arts purchase Take-Two Interactive, publishers of the critical and commercial blockbuster Grand Theft Auto IV, for $2 billion. Expect the internet to burst into flames Monday if Sebastian's claim comes to fruition.[via Videogaming247]
EA buys WoW social networking site Rupture
Social networking around MMOs just hit the big time. Shawn Fanning, creator of Napster way back when, created a site called Rupture a while back that purported to be a social networking site based around World of Warcraft. Since then, the site seemingly hasn't done anything all that interesting -- they've added a few games and a few new features, but they haven't yet made it out of beta, and it wasn't apparent that anyone was real interested in Rupture.Until now -- EA (yes, that EA) has ponied up a whopping $30 million to buy Rupture and all of its potential up. A move to put some social networking into play on their upcoming Warhammer Online title? Taking competition away from an upcoming official site covering all their games? Whatever EA is planning to do with Rupture, they're paying through the nose for it -- this makes the $1 million Wowhead buyout look like chump change.Then again, if Rupture turns out to be the "Facebook for gamer"s that they hope to be, $30 million will look like a bargain. Either way, EA just put their money where their mouth is in the social networking MMO game.Thanks, Brooke!
Microsoft completes Danger acquisition, creates new Premium Mobile Experiences division
Microsoft's just announced that its $500M buyout of Sidekick maker Danger is complete, and that it's rolling the new team into its own unit, the Premium Mobile Experiences division. Ready to follow the chain of corporate command? PMX is under the Mobile Communications Business unit at MS, which itself falls under the Entertainment and Devices Division responsible for the Xbox and Zune. Got all that? Good. Danger's management team won't be directly calling the shots at PMX, though -- they'll be reporting to Roz Ho, who you might remember as the former head of the Mac Business Unit. Ho says the goal of PMX is to have people "smile every time they look at their phone," which hopefully means we'll be seeing a lot more Danger influence on Windows Mobile than the other way around. Still, "Premium Mobile Experiences" is an interesting choice of name, especially in the same division as the 360 and Zune -- dare we dream of a Microsoft-branded consumer phone?[Via MocoNews]
Iomega acquired by EMC for $213 million
Not even a month after we heard that Iomega was warming to a revised takeover bid from EMC, the two lovebirds have finally let their true feelings be known. Announced today, EMC is acquiring the famed Zip Drive manufacturer for $213 million. The final figure is nearly $7 million higher than the one proposed in March, and the all-cash agreement worked out to $3.85-per share -- 5.8-percent higher than Iomega's Tuesday closing price of $3.64. Also of note, Iomega will be picking up the tab on a $7.5 million termination fee to the shareholders for a canceled deal involving China's ExcelStor Group, and EMC stated that it didn't expect the acquisition to "have any material impact on its full-year earnings."[Thanks, Khattab]
Family Album: Take Two Interactive
You might have heard this crazy rumor that Electronic Arts is trying to buy Take Two Interactive and if you haven't, welcome back to civilization. The merger got our family over at Joystiq to thinking, what exactly makes up the Take Two family tree? Diving deep into our library of research materials, Joystiq has examined and dissected all of the assets up for grabs in a possible Take Two buyout.You may be surprised to see how many development teams call Take Two home. Other than obvious dev teams at Rockstar and 2K Boston, checking out this family album makes EA's acquisition anxiousness all the more understandable!Head to Joystiq and take a gander at the Take Two family album
Rumor: EA purchases GTA community site for $3.4m [Update]
Update: Forum MODs have just confirmed for us that this was an April Fool's joke. That's strange though because we could have sworn it was still March. Thanks for wasting every body's time! Confident they'll soon be the owners of all things Take Two Interactive, Electronic Arts has made a push to acquire GTANet.com, one of the largest Grand Theft Auto communities online (which is comprised of 11 different GTA based websites). According to reports, EA has acquired the site, including all domains associated and all statistical information about its members (as listed in the above email scan from EA to GTANet owners found by WhatIfGaming), for $3.4 million as of March 22.If true, Electronic Arts would have one of the largest databases of information of any Grand Theft Auto community available. Speculation aside, we wonder how important this information is to EA if they were to acquire Take Two.While the owners of the GTANet have not posted an official confirmation on the matter, the GTAForums.com logo has been changed to incorporate the EA insignia adding fuel to the fire. With this supposed acquisition we wonder Take Two acquisition press release is being edited as we speak.[Thanks, Chris][Read, full email scan][Read, GTAForums New Logo]
Rockstar is the key as EA gets hostile in takeover bid
Speaking to the BBC, EA chief executive John Riccitiello was clear that the primary interest EA has in acquiring Take Two Interactive is the company's strong roster of development teams, specifically that of Rockstar Games. "The big headline here is that our primary interest is in Rockstar and the intellectual properties around Rockstar," Riccitiello said as the April 29 release of Grand Theft Auto IV looms in the distance. Sports gamers have long stated their frustration with the attempted acquisition because it would remove EA's only competitor in the simulation-sports market. Riccitello explained that the sports angle was a secondary thought, "sports games are secondary consideration here," he explained.While Take Two had declined the initial offer from EA for $2 billion, the acquisition has recently gone hostile. In order to purchase the company from under Take Two executives, EA has put in a cash tender offer to purchase all outstanding shares of common stock for $26 each on last Thursday targeting shareholders. Take Two executives have since asked shareholders to hold out on the offer, which is set to expire on April 11 - a mere 18 days before the launch of the GTAIV cash-cow. With the news that EA is targeting new shareholders that are looking to unload a headache, this news looks to get more interesting by the day. [Read, Joystiq][Read, Next Gen]
Take-Two asks shareholders not to take EA offer
Take-Two is appealing to stockholders not to consider EA's early-morning all cash tender offer, which pitched a purchase of the company's stock at $26 a share (a 4.4% premium over yesterday's closing price). The Take-Two board states it will review and consider EA's offer and, within 10 business days, advice stockholders of the board's position on the matter along with its reasoning.The 10 day "please wait" request from the Take-Two board is still way within the April 11 deadline given by EA on its $26 per share offer to stockholders. EA wants Take-Two and it wants it bad.
EA makes all cash tender offer to purchase Take-Two
With Take-Two Executive Chairman Strauss Zelnick having thoroughly rejected EA's initial buyout offer, the Madden and Burnout publisher has redirected its corporate Katamari at Take-Two shareholders. EA has announced the commencement of a tender offer for all of the currently outstanding shares of common stock of Take-Two Interactive Software at $26 per share. Valued at approximately $2 billion, the offer reportedly represents a 64% premium over Take-Two's closing stock price on February 15, the company's last trading day before EA began its increasingly aggressive financial courtship. Compared to Wednesday's stock price, it constitutes a 4.4% premium.Barring extension, the tender offer is good until midnight EST on Friday, April 11, 2008. EA CEO John Riccitiello described the offer as "a great opportunity for Take-Two shareholders" and as a a way to "maximize the value" of their investment. "For EA shareholders, the combination would add additional intellectual properties to our already strong portfolio and welcome Take-Two's talented creative teams to the great development organization we've built at EA," he concluded.Will shareholders deem this offer welcomed financial assistance or unwanted financial insistence? We'll have to wait and see.
Sega: We're not interested in a buyout, thanks
Apparently, one merger per decade is enough for Sega. Despite falling on some tough financial times recently, Sega has declared that it is decidedly not interested in getting bailed out by some generous big-time buyout (not that anyone else was necessarily interested, mind you).In an interview with Reuters, Sega Sammy CEO Simon Jeffrey said his company isn't eager to ride the industry's recent wave of consolidation. "That's not an area we want to play in right now," he said. "We have no interest in being acquired, we are very happy with our position right now."Buoyed by extremely strong sales of Mario & Sonic at the Olympic Games, Jeffrey seems perfectly content with his company's current sixth-place position in the game publisher rankings. "There is plenty of room for smaller companies to be successful and profitable in this business," he said. "You don't have to be number one or number two. You can be number six very happily," Jeffrey said. Chant along with us everybody: We're number six! We're number six!
Take-Two's Zelnick reiterates rejection of EA buyout
Take-Two Executive Chairman Strauss Zelnick continues to hold the line against EA's buyout offer, repeating once again the company still isn't interested. In a Q&A with The Hollywood Report, Zelnick believes that consolidation is likely to continue in the industry, but he would like Take-Two to remain an "independent company."We'll have to wait and see if it's just lip service, but Zelnick actually says a few things that stray from the well-paved path we've seen from EA and (ever-increasingly) Activision. He finds pride in the progress made over the last 10 months since taking over the company and then commits the video game executive version of shock-and-awe by saying, "Does consolidation create better games for consumers? Does it create better careers for the creatives? Those questions are just as important. If all stakeholders aren't taken care of, then none of the stakeholders will benefit." If Take-Two survives what some analysts say is the inevitability of an EA buyout, and Zelnick sticks with that line of thinking, we may have to send him a Valentine's Day card next year. We'll have to find out if he prefers flowers or chocolates?[Via GameDaily]
Jack Thompson offers to help EA with Take-Two takeover
Last week, Electronic Arts CEO John Riccitiello revealed an offer put forward to Take-Two Interactive executive chairman Strauss Zelnick to buyout T2 for nearly $2 billion. Zelnick expediently and publicly shot down the offer, though this battle of the peculiar last names was far from over -- since then we've heard that other companies took interest in T2 after EA was shot down, though certain industry analysts believe EA will eventually win out. Yesterday brought news of a new player on the field that could tip the battle in EA's favor -- Enter: Jack Thompson!Yes, everyone's favorite Floridian moralist (and T2 shareholder) recently threw his support behind Electronic Arts in an impassioned letter, saying he would help "evict the Zelnick Trojan Horse from within Take-Two's corporate walls". We think that EA and J.T. would be strange bedfellows, given Thompson's denunciation of Sims 2 a few years back -- though his uncustomary defense of Mass Effect might have rebuilt that once-burnt bridge. How about it, EA? Is your raid on Take-Two LFM?
Take-Two: More companies want to buy us
Like that hot catholic school girl with a penchant for acting tough, everyone seems to want a piece of Take-Two these days. The Associated Press is reporting on a recent SEC filing in which the company reveals its been approached with a few "informal indications of interest in a business combination" since EA's unsolicited buyout offer earlier this week. It makes sense ... after all, when if the most popular guy in school (read: EA) gets turned down by a relatively popular girl (read: Take-Two), then everyone else suddenly thinks they have a chance with her.Like that goth girl with the spiked choker and way too much black mascara, though, Take-Two is acting like it doesn't want the attention. The filing goes on to say that the company "has not engaged in any substantive discussions with any party (including EA) with respect to a business combination." At least they're being direct about their lack of interest. Everyone knows the best way to ruin a business rep is by being a merger tease.
Take-Two rejects EA acquisition proposal [update 1]
Apparently, it didn't take them very long to consider Electronic Arts' somewhat hostile buyout proposal -- Take-Two's Board of Directors just responded to the offer with a press release of their own, stating that EA CEO John Riccitiello's proposal was "inadequate in multiple respects and not in the best interests of Take-Two's stockholders."While EA's proposal listed Grand Theft Auto IV as a primary reason for the merger, as Riccitiello claimed EA could lend their help during the game's quickly approaching release, Strauss Zelnick, Take-Two's executive chairman, listed GTAIV as the primary reason why they wouldn't want to merge at this point in time, fully expecting to increase their overall value when the game hits store shelves come April 29.Zelnick's laundry list of reasons why the buyout wouldn't benefit his company can be found on the press release. For now, let us rejoice in the postponement of the seemingly inevitable future where one superconglomerated gaming publisher/developer controls all game releases on the planet.Update: MTV Multiplayer's Stephen Totilo just had a chat with industry guru Michael Pachter, who claims that this probably isn't the end of the ordeal, and that EA will eventually get their way -- though it might not happen for a while.
EA proposes acquisition of Take-Two for $2 billion [update 1]
var digg_url = 'http://digg.com/gaming_news/EA_proposes_acquisition_of_Take_Two_for_2_billion'; Not one to miss out on a gaming industry trend as hot as corporate synergy, Electronic Arts recently proposed an acquisition of Take-Two Interactive Software for $26 a share (nearly a 63 percent premium to their current stock value) -- for a grand total of approximately $2 billion.Before you start feverishly fantasizing about a Bioshock/Crysis mash-up, you should know that Take-Two's executive chairman, Strauss Zelnick, shot down the proposal upon receiving it last Tuesday. Attempting to go over the bossman's head, EA CEO John Riccitiello made his proposal public, hoping that Take-Two shareholders will find the offer more attractive than Zelnick initially did.EA intends to keep the proposal on the table to give Take-Two's board of directors "further time to consider it," obviously hoping to force Zelnick's hand. Whether or not this strategy will work, we imagine we'll find out in the next few days. We'll keep you updated as the situation develops.Update: Take-Two's Board of Directors have considered the offer, and politely refused. Check out the full story for Zelnick's reasoning behind shooting down the proposal.
Epic's Mark Rein responds to Microsoft buyout rumor
Did you hear the one about Microsoft buying Unreal Engine developer Epic Games for one billion dollars? The rumor stems from the latest issue of GamePro magazine, and while not flat-out denying the rumor, Epic VP Mark Rein did has some choice words.In an email to Develop, Rein said, "I have not seen the actual GamePro article but if they're going to make predictions about us selling Epic we would prefer if they started at $2 billion, because we don't want anyone thinking that we're cheap," followed by a smile-inducing emoticon. A more tangible bit of Epic Games speculation is that Gears of War 2 will be unveiled at GDC this week.[Via X3F]
Microsoft said to have dropped $500 million on Danger
While Microsoft was doing little to hide how much it was willing to spend on Yahoo!, the company's been decidedly more coy about exactly how much it dropped to pick up Sidekick-maker Danger earlier this week. The ever-dependable Om Malik now claims to have turned up a figure, however, and while it pales compared to that Yahoo! offer, it's still quite a doozy. According to Om, a "fairly solid source" informed him that Microsoft parted with a full $500 million to bring Danger into its fold, with later-stage investors in Danger the biggest beneficiaries of that payday. What's more, that hefty price also got Om speculating that Microsoft may be about to "pull an Xbox" with its cellphone business, fearing that its current approach would relegate it to the business market -- a pretty safe assumption, if you ask us.
Microsoft buys Danger, Windows Mobile Sidekick imminent
Sure, the folks in Redmond didn't get their grubby mitts on Yahoo! (yet), but at least they picked up a little something for their mobile division, namely: Danger. According to news just crossing the wires, the monolithic company has picked up the Sidekick-creators for an undisclosed amount, and will subsequently fold the phone-maker into its mobile wing. Is there a Windows Mobile version of the Hiptop in our future? Survey says yes.
Yahoo! not so hot for Microsoft's initial bid, plans to reject
We're fairly certain we haven't heard the last of this Microsoft offer to buy Yahoo! -- or Google's plans to intervene -- but it looks like round one has Yahoo! saying "no thanks" to Microsoft's $44.6 billion buyout offer. Apparently some of the number crunchers inside Yahoo! feel like the number is too low of a valuation, while others want to get tied up with Google to improve search revenues -- which some seem to think might have some antitrust implications. Pah, "antitrust implications." At least Microsoft remembers when men were men, and monopolies were monopolies.[Thanks to everyone who sent this in]
SCi management out, stock price recovering
SCi shareholders must be celebrating like the Munchkins of OZ after Dorothy dropped a house on the Wicked Witch of the East over the resignations of the company's executive board -- shares rose 44% on the news. The company's stock plummeted last week over the news that SCi had taken itself off the market for a buyout, causing investors to call for the heads of the executive board.The board officially saw the resignation of CEO Jane Cavanagh, Managing Director of Publishing Bill Ennis and Managing Director of Studios Rob Murphy; all resignations were effective immediately and former Corporate Development Director of EA Phil Rogers is now the chief executive. SCi Chairman Tim Ryan says the company needs to restore faith and trust in investors by "under-promising and over-delivering." Meanwhile, SCi will strap on the stilettos and start walking the streets again in search of a potential suitor -- maybe it'll fight for territory with Codemasters on the corner.
