Published in News
Take-Two passes on EA buyout offer
by David Stellmack on26 February 2008
Per share value too low
Take-Two shareholders apparently are not sufficiently enticed with Electronic Arts’ proposed recent buyout offer of $26 per share (nearly $2 billion cash for the deal). According to shareholder reaction today, the $26 per share is much undervalued, and shareholders feel that the offer could go much higher if they wait. While a buyout may be inevitable, the shareholders apparently do not feel that EA will be the sole bidder and that they can afford to wait for subsequent better offers to come along.
The next Take-Two video game franchise release of the Grand Theft Auto series (GTA 4) is scheduled for April 29th, and analysts have predicted that a buyout offer may go as high as $33 per share after the predicted ‘cash cow’ new video game is released. The controversial Grand Theft Auto franchise gaming series has been extremely popular and has generated huge revenue for Take-Two.
Read more here.