Give us your Grant Theft Auto
Last modified on Monday, 25 February 2008 10:59
In a surprise move Electronic Arts had made an unsolicited offer to purchase Take-Two Interactive Software, the publisher of the highly successful Grant Theft Audio video games franchise. EA reportedly is offering Take-Two a deal worth approximately $2 billion, or $26 per share. This offer comes on the heels of an earlier offer that EA made Take-Two of $25 per share, which offer expired last Friday. EA has said that it will hold a conference on Monday morning, February 26th, to discuss the offer.
Grand Theft Auto IV is due to be released in April of this year and presumably will have huge profits, as have its other games. Its series of games have become progressively violent and scandalous, according to some in U.S. Congress who are pushing for more oversight and internal control of the games’ content, to the point of removal from shelves of video stores. Takeover by EA could work in Take-Two’s favor, in that EA has a reputation for more morality in its games and control of content, a definite PR advantage that Take-Two shareholders could benefit from.
And, EA has a huge distribution network and marketing machine already in place that Take-Two does not have. EA is definitely wooing the shareholders with its buyout offer and intends to exert maximum pressure on the Board of Directors of Take-Two to accept the offer. However, Take-Two is in stable financial condition and is not really in any dire straits to be acquired.
It will be interesting to watch what happens.