takeover
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Rumor: Warner Bros. looking to acquire SCi/Eidos
Speculation is mounting that Warner Bros. is getting ready to buy UK publisher SCi (soon to be Eidos PLC). According to "sources" speaking to GI.biz, Warner Bros. has been looking for another tasty company to gobble up since taking over Traveller's Tales last year. The departure of two non-executive SCi board members is seen as another sign that Warner Bros. is getting ready to pounce on the financially distraught publisher.Warner Bros. had previously given the troubled publisher £60 million to keep its head above water. SCi does hold the rights to some pretty lucrative franchises like Tomb Raider, Hitman and Deus Ex. We contacted Wedbush Morgan analyst Michael Pachter for his take on the situation. His response can be found after the break.
Is Microsoft finally close to snatching up RIM?
Funny story -- we pretty much heard this exact same rumor floating around last August, but given the current economic situation, we're inclined to believe this one a good bit more. A recent Reuters report is pointing out that RIM (like practically every other company right about now) is ripe for the picking, and any outfit with a serious load of cash reserves could get themselves quite a bargain. Given that the Redmond mega-corp has shown interest before (and clearly has plenty of Greenbacks), we were particularly interested in Canaccord Adams analyst Peter Misek's quote: "I'm fairly certain [Microsoft] has a standing offer to buy [RIM] at $50 a share." If you'll recall, RIM's stock sat at $148 per share just four months ago, and now, it's hovering around $60. As expected, Microsoft had no comment on the report, but don't be surprised to see something go down if Wall Street keeps hemorrhaging.[Via Electronista]
Samsung makes a hostile bid for SanDisk
We'd heard rumors Samsung was wooing SanDisk, but it looks like the four-month courtship is over -- Samsung just announced that in response to SanDisk's "unrealistic expectations" during negotiations, it's going hostile and will offer $26/share for the company. That's bound to cause some waves in the storage industry, especially since Toshiba and Seagate were also rumored to be interested in SanDisk. We'll see what happens -- things always get a little crazy when there's nearly six billion dollars in cash on the table.[Thanks, Marshall84]Update: SanDisk's board rejected the bid unanimously, saying the bid undervalues the company and is, like, totally uncool, man.Read - WSJ articleRead - Samsung letter to SanDisk
EA gives up trying to take over Take-Two
ACT XVII FADE IN:EXT. TAKE-TWO'S PARENTS' HOUSE -- Electronic Arts ("Eric") has packed up its boom box and is getting ready to drive off, fed up with trying so long to court Take-Two ("Trina"). TRINAWait! Where are you going?ERICLike I said in the letter I nailed to your door. "EA has decided not to make a proposal to acquire Take-Two and has terminated discussions with Take-Two."TRINABut but ... we talked in private on the phone. Even Felicia said it'd be okay. Was it something I said? Was it Niko?ERICI'm sorry, but it's over. I've been out here holding my boombox since March and my arms are very, very tired. I'm hungry, I'm going to go make a sandwich now. I've got 15 new games in my pocket -- Spore, Dead Space, Mirror's Edge, some sports titles, etc. I think I'm going to deal with those.TRINABut ... !ERICI'm sorry. Maybe some other time. ERIC LEAVES TRINA(shouting)Call me! FADE TO BLACK END OF SHOW ... ?
Square Enix seeks answers after rejection by Tecmo, gets none
Imagine Square Enix's proposed takeover of Tecmo as a high school "romance." In it, Square is the suave campus hunk who professes his burning desire for Tecmo, the hottie who could have any guy (or girl) she wanted. But Tecmo not only shoots down the advance, she decides to "go out" with the scrawny, less attractive Koei instead. She won't say why or even return Square's calls. Square turns around and says, "Under such circumstances, the Company is unable to make appropriate modifications to major terms of the Proposal including the TOB price, and determines that it is extremely difficult to continue the discussions with Tecmo based on the Proposal. The Company, therefore, has decided to withdraw from the Proposal." Blank stares. "What I'm trying to say is I'm withdrawing my proposal to take you over," Square tells Tecmo, working his idea of emo for all its worth. Tecmo just smiles and says, "Hee! You're funny! Bye-eee!"The End?
Square Enix takeover denied, Tecmo goes with Koei
It looks like the proposed takeover by Square Enix didn't take, as Tecmo has revealed they'll be merging with Koei. It turns out that this choice provides Tecmo with "a greater chance of boosting corporate value," whch basically means that merging with Koei wouldn't have the company swallowed whole by the huge Square Enix. They can still maintain some identity this way.Square Enix isn't willing to call it quits, however. Their original buyout offer was for $206 million and they're planning to further investigate the terms of the Koei and Tecmo merger. We guess we'll be hearing more about this in the future.[Via Joystiq]
Square Enix casting Takeoveraga on Tecmo
With Itagaki and most of Team Ninja gone, the president out, and a scandal over unpaid bonuses, Tecmo is easy prey for a bigger, acquisition-minded company -- like, say, Square Enix. SE announced that they've submitted a proposal to Tecmo's board of directors for acquisition of the company's common stock. According to the vaguely legalese press release, SE "cannot be optimistic about the future of this significant resource, given the current circumstances surrounding TECMO" -- and thus they wish to save Tecmo by purchasing them. Tecmo would retain its existing brand and company organization, like Taito. Tecmo's board of directors has until September 4 to respond to this offer. Should they fail to make a decision ... Square Enix won't buy them. That sounds anticlimactic, but without some fresh Dragon Quest money Tecmo's probably toast.
EA, Take-Two take buyout talks behind closed doors
The ongoing drama of who's eating who between mega publishers Electronic Arts and Take-Two has finally been taken behind the curtain, where it should have been all along. After coming to some measure of understanding, the companies have jointly signed a confidentiality agreement, agreeing not to blab about what may or may not happen as a result of ongoing talks until, you know, something actually happens. According to Reuters, EA has agreed as part of a regulatory filing with the SEC to not "make any further announcements regarding the status of any discussions or negotiations with Take-Two" until the pair come to some sort of mutual accord. We couldn't be happier, knowing that while the drama will likely continue to unfold for quite some time, at least we won't have to read (or write!) about it.
Take-Two confirms meeting with EA, letting offer expire tonight
Just a little while ago, Take-Two announced that EA has agreed to sign a confidentiality agreement and review the object of its hostile financial affection's business plans for the next three years, turning this hostile takeover into something more ... amicable. Take-Two has also confirmed that it intends to let the clock run out on EA's $25.74 per share takeover offer, which expires today at midnight.At face value, what this means is that EA still wants to buy Take-Two, and that the current offer still isn't reasonable to the Take-Two board. Meanwhile, the FTC will have finished its anti-trust probe on the issue this Thursday. Perhaps once EA gets a look under Take-Two's hood the two companies can come to a mutually agreed upon price to end this saga -- or some other publisher could come out of left field and scoop Take-Two up.
EA's Take-Two offer to expire tonight
Listen, we don't care how this ends anymore. We don't care if EA buys Take-Two and forces them to manufacture toilet paper before shooting them into space. We worried about the potential harm to the industry like a hundred years ago, but now, we just want it to be over, so we never, ever have to write about it ever again. We got into this business to talk about potato chips that sort of look like Dr. Robotnik's head, stuff like that. This financial news makes our brains hurt. Keeping that in mind, here's how we understand the latest missive from EA, with some help from the Silicon Alley Insider. The company says that it's actually going to let its most recent offer to purchase company shares at $25.74 a piece expire tonight at midnight, largely because it couldn't integrate Take-Two before the holiday season. But, Take-Two is offering to come and give EA a presentation that shows just how valuable it really is, if only EA can keep its trap shut about it. So, that's the skinny. It sounds like it's sort of over and it's sort of not. Now, if someone could please fetch a napkin to catch the blood and brain goo seeping from our ear canal, we'd be forever in their debt.
EA extends Take-Two takeover offer to Aug. 18
With another deadline in EA's takeover bid come and gone, the industry's #2 publisher isn't quitting and has reaffirmed it still wants to gobble up Take-Two by extending its $25.74 per share offer deadline to Aug 18. EA currently has only 15% of Take-Two's stock, which translates to 11,741,339 shares. Obviously, EA needs over half the shares to complete the takeover.Take-Two chairman Strauss Zelnick released a statement that the company's board is "100% committed to maximizing stockholder value," calling EA's bid "inadequate" and recommending stockholders not take the EA offer. He says that Take-Two is currently "engaged in meaningful discussions with multiple parties" and that some of those groups have been conducting due diligence (a fancy legal term for checking under a company's hood and making sure everything looks kosher). Meanwhile, the FTC is probing the deal over possible antitrust issues and should be finished by Aug. 21.Source – EA extends deadline to Aug. 18Source – Take-Two responds to fifth extension
EA's third deadline in Take-Two takeover passes tonight
In a few hours, the third deadline in Electronic Arts' takeover bid for Take-Two Interactive will pass. GamePolitics has a pretty good roundup of speculation stories regarding the deal; meanwhile, we've also heard from Forbes and go-to analyst guru Michael Pachter on the situation.Take-Two reported that EA only controlled 8% of the company's stock following the last deadline. We expect a press release from EA bright and early tomorrow morning about its next move and a response from Take-Two a little thereafter.
Pachter: EA will raise Take-Two bid, it'll get rejected, merger will still happen
Wedbush Morgan analyst Michael Pachter expects EA will own Take-Two when this buyout saga comes to an end, but before that, there's a few more chapters to write. GameDaily reprints the analyst extraordinaire's latest commentary where he envisions EA will increase its bid by a "modest amount" and attempt a "friendly deal." Pachter surmises Take-Two will reject the offer, especially after it recently talked about working the Wall Street corner for other opportunities. Pachter expects EA wants this deal done before this holiday, but that Take-Two management has an incentive to wait until after April 1, 2009, due to some stock finagling (remember, in the end, this is all about money). When all is said and done, though, Pachter believes EA will acquire Take-Two. He expects once EA walks away from the table after the next rejection, and it proves there are no other bidders salivating for Take-Two, that all parties will meet again and work something out.
Take-Two: 'Portfolio balancing' drove GTA IV DLC delay, partnerships possible
In the same conference call that gave us this head scratcher, Take-Two reps tap danced over a number of other issues, including their official reason for delaying GTA IV's hotly anticipated DLC, as well as any potential partnerships that may be lurking on the horizon.Regarding the company's resolution to keep the GTA IV downloadable content out of players' hands until sometime between November 1 of this year and January 31, 2009, Take-Two's Strauss Zelnick calmly stated that the decision was based on "portfolio balancing," and that the delay was "not based on development issues." Even as our hearts ached for additional Liberty City shenanigans, Take-Two reps on the call remained enthusiastic, and for good reason, given that during the last quarter the GTA brand made up an impressive 78% of the firm's total publishing revenue.
Microsoft and Yahoo! restart talks
Yes -- they're at it again. Please for the love of all that is sacred, let somebody buy something... quick. From the horse's mouth;"In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo!"[Via Emiliano]
EA deadline for Take-Two passes quietly
Wire service AFP reports that last night's deadline for Take-Two shareholders to agree to EA's takeover bid passed without a peep from either side. Take-Two commented earlier Friday saying that the issue "is in [EA's] court." EA would not comment on the situation.In non-business news, the AFP could've probably used an editor on staff who plays video games while reporting this story. Forget the semi-understandable error that it called GTA IV, a game with one of the best retail launches of all time, Grand Theft Auto IV: Liberty City Stories. Focus more on the fact that the AFP in reporting about GTA IV says, "Players score points with acts such as carjacking and killing prostitutes or police officers." Looks like Rep. Lee Terry and the AFP are getting their info from the same source.
EA deadline to Take-Two shareholders ends tonight
There are a little over 12 hours to go before EA's $25.74 per share deadline for Take-Two ends at 11:59PM EDT. Analyst Michael Pachter told Forbes (via GamePolitics) that EA started off too high with its $26 a share offering and should have started around $22 back then. Meanwhile, analyst Colin Sebastian tells the San Francisco Chronicle he believes the deal is going to get "hammered out," possibly at a higher price.As of this writing, Take-Two's stock is trading around $27 per share, but EA could be buying up all those shares with its billion dollar loan for all we know. Word on the street is that something could happen Monday, but the only certainty right now is tonight's deadline.
Swarm robotics project further ensures our doom
Much to our dismay, this isn't the first swarm project that really makes us wonder how long humans will be running things on Planet Earth. MIT's own James McLurkin was recently down in Austin, Texas showing off a dozen or so of his hundred (is that even legal?) robots. The group was reportedly able to spread out, clump together, play follow the leader and circle the wagons, all of which were just ploys to distract us from seeing precisely how much they really know. Each of the appropriately-titled SwarmBots featured eight AA batteries, a 1.1-watt speaker, behavior LEDs, a radio, camera and an IR communications system. For those curious, each one cost around $2,000 to build, but Mr. McLurkin suggested that these were a bargain compared to typical research bots. It's all about perspective, baby.[Via Futurismic]
EA takes out $1 billion loan for Take-Two acquisition
Electronic Arts has received commitments for a $1 billion loan from various financial institutions toward its acquisition of Take-Two. The company has up until January 9, 2009 to tap the funds in its $2 billion hostile takeover and there's been no update on the deal since Take-Two's last rejection.GamePolitics spoke with Wedbush Morgan analyst Michael Pachter who says that after the Pandemic/BioWare acquisition that EA is a little strapped for cash. He believes the timing of this loan isn't "particularly unusual" and it could be possible that EA might make a higher bid for Take-Two.
EA extends Take-Two tender offer deadline (again)
EA has once again extended its tender offer for all outstanding shares of common Take-Two stock, pushing its previous deadline (which was to expire this evening) to 11:59PM EDT on May 16, 2008. The persistent publisher has also amended its $26-per-share offer, down to $25.74 per share after taking into consideration "additional shares to be issued to Zelnick Media" following a change in Take-Two's incentive stock plan. During yesterday's annual Take-Two stockholder meeting, chairman of the board, Strauss Zelnick, reiterated the "inadequate" nature of the offer, expressing that the company was worth more than $26 per share. "It just doesn't stack up," he said. EA, on the other hand, continues to insist "the offer price is full and fair," noting that as of 5:00PM EDT on April 17, 2008, 6,432,787 shares of Take-Two had been tendered in and not withdrawn from the tender offer.What happens next? Who will make the next move? And just what is the FTC up to? Tune in next time for the not-at-all riveting continuation of: The Young & the Purchasable.
