EA Makes Buyout Offer to Take-Two (GTA series) for $2 billion.

[Omega Amen]

Remember Activision merging with Vivendi? How about EA buying out Bioware and Pandemic?

Well, it ain't over yet, folks. Breaking news says that EA just made a buyout offer directly to the shareholders of Take-Two for $2 billion. The reason for directly appealing to the shareholders is because the CEO of Take-Two originally rejected the offer.

Kotaku has the letter from EA CEO Riccitello directly appealing to the Take-Two shareholders.

Also, apparently EA made a new website called: http://www.eatake2.com/

EA and Take-Two are huge game software publishers. A merger will make them most likely the largest game publisher in the world. Here are the well-known properties of both companies.

EA: Madden, FIFA, Burnout, Need for Speed, Battlefield, The Sims, Spore, Medal of Honor, Command and Conquer, Mercenaries, Mass Effect

Take-Two: Grand Theft Auto, Bully, Manhunt, Midnight Club, 2K Sports, Bioshock, Civilization

As of now, no merger or buyout has taken place yet. But EA is extremely serious, especially with the release of GTA IV happening in a few months.

[Mr. SmartyPants]

They've taken my Bioware, and they have taken my Take Two.

BUT THEY WILL NOT TAKE MY BLIZZARD AND MY VALVE!

[Nate]

Actually Take Two shot back saying "Not now, and not at this price. We'll talk after GTA IV is released."

http://gamepolitics.com/2008/02/24/breaking-take-two-fires-back-at-ea/

Quote from the board:

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.

Zelnick himself is quoted as saying,

Therefore, we offered to initiate discussions with EA on April 30th, 2008 (the day after Grand Theft Auto IV is scheduled to release). We believe this offer demonstrated our commitment to pursuing all avenues to maximize stockholder value, while we believe that EA’s refusal to entertain this path is evidence of their desire to acquire Take-Two at a significant discount, whereas we believe this value rightly belongs to our stockholders.

Personally, I think it's obvious what EA is trying to do, besides try and weasel some cash out of the GTA IV release. As Omega showed, 2K Sports is a division of Take Two. I'm pretty sure EA is trying to buy out Take Two to shut down 2K Sports, thus having a monopoly on all sports games on the market.

EA sucks, and I applaud Take Two for their response.

[Omega Amen]

Actually Take Two shot back saying "Not now, and not at this price. We'll talk after GTA IV is released."

Correct. That is why EA is going directly to the shareholders with the buyout offer. Although the CEO (Zelnick) and board rejected EA's bid, a vote from the shareholders in EA's favor will overrule their decision (since ultimately the shareholders are the owners of the corporation).

EA sucks, and I applaud Take Two for their response.

Ehh.... While I am not happy about EA's aggressive move to reduce competition, I am not going to applaud Take Two either. Take Two has been unable to really make a profit without GTA. Their executives have not done a good job of building up their other brands nor marketing them to get good return for their shareholders.

It would not surprise me if they want to wait after GTA IV so they max out their buyout price, and then immediately accept the cash and jump ship, leaving EA to do some massive cutting of employees at Take Two.

EDIT: To show my skepticism, look at what N'Gai found on Take Two executives' behavior just before rejecting EA's first offer.

[Nate]

It would not surprise me if they want to wait after GTA IV so they max out their buyout price, and then immediately accept the cash and jump ship, leaving EA to do some massive cutting of employees at Take Two.

I think that's actually what they're planning to do, but that's the question...with their stock price being so high after GTA IV gets released, will EA be willing to pay that much?

What's really baffling to me is how EA said "Yeah, buying out companies is a really poor business strategy, it was a bad decision to do that so much" yet they keep doing it...

[Etoh*the*Greato]

I agree with previous statements by Gamepolitics, though. If EA eats T2, Rockstar will leave. Of course, the 2k Sports franchise is more likely why EA is after them.

[SolidÃ…rmor]

They only make the offer so that 2kSports can't put an independent NFL game out to challenge Madden. Seeing how Madden 05-08 sucked. It's sad that EA buys out the 06-07 license to the NFL and then try to acquire the rights to the NHL afterward to try to shut down 2K. It's pretty pathetic that EA has to buy everyone out to be able to come out with a decent game that isn't really their property. If 2K has a backbone they'd tell EA where to put their offer and walk away.

[Omega Amen]

They only make the offer so that 2kSports can't put an independent NFL game out to challenge Madden. Seeing how Madden 05-08 sucked.

Well, before this offer, EA already extended their exclusive license with the NFL to... 2012, I believe? So, I don't think EA is concerned about some NFL game from some competitor since currently no one else is legally allowed to make one. I think EA is going after the other sports: NBA, NCAA, etc.

If 2K has a backbone they'd tell EA where to put their offer and walk away.

Doesn't matter if 2K has a backbone. They have no say in this matter. They are corporate employees. The only people that have any say about a buyout are the Take Two executives and shareholders (a.k.a. the owners).

[SolidÃ…rmor]

Well, before this offer, EA already extended their exclusive license with the NFL to... 2012, I believe? So, I don't think EA is concerned about some NFL game from some competitor since currently no one else is legally allowed to make one. I think EA is going after the other sports: NBA, NCAA, etc.
Doesn't matter if 2K has a backbone. They have no say in this matter. They are corporate employees. The only people that have any say about a buyout are the Take Two executives and shareholders (a.k.a. the owners).

I stand corrected, I didn't read about EA extending their license until well after. Which is really upsetting to me as an avid NFL game player. Another 4 years of Madden...or should I say Al Michaels. Now, "Grand Theft Madden" would be interesting to see. Does EA as a publisher really need to buy out absolutely developer making games? Do they have to have their cruddy little EA logo on every game case?

God I hope not.