Thursday, April 4, 2024

EA Take-Two Deal Off

EAElectronic Arts was frantically hunting down Niko Bellic for a year now and it finally seems they’ve given it up.

Gamasutra reports:

    “The two companies had signed a non-disclosure agreement to protect their recent closed-door talks, during which EA reviewed Take-Two’s management presentation and due diligence to see what per-share value it would support.

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    Though EA had said it was ‘hopeful’ that the two parties could reach an agreement, the company announced today that “after careful consideration… EA has decided not to make a proposal to acquire Take-Two and has terminated discussions with Take-Two.’

    There are a few potential barriers that could have halted the merger on both sides. EA’s original $2 billion dollar offer amounted to $26 per share, but the approval of a management compensation package by Take-Two’s board relatively early in the process diluted the per-share value to $25.74, an amount chairman Strauss Zelnick repeatedly stressed was ‘inadequate.’

    Take-Two’s board also adopted a “poison pill” measure that would have taken effect in the event the company was acquired, and the measure was never voted down or removed throughout the long-standing acquisition attempt.”

Well the only news to rejoice is that Grand Theft Auto is going staying violent, BioShock will be getting a dystopian sequel next year, EA still needs to compete in the sports market and Midnight Club will stay free from the Need for Speed overtures.

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