Recently, The biggest development in the
video game industry is EA#DY#s plans to buy Take-Two Interactive.
On 24th, Feburary. Electronic Arts Inc. announced that it has proposed to acquire
Take-Two Interactive Software, Inc. in an all-cash merger valued at
approximately 2.0 billion.
EA Chief Executive Officer John Riccitiello said: "Our all-cash proposal is a
unique opportunity for Take-Two shareholders to realize immediate value at a
substantial premium, while creating long-term value for EA shareholders.
Take-Two#DY#s game designers would also benefit from EA#DY#s financial resources,
stable, game-focused management team, and strong global publishing
capabilities."
The EA#DY#s letter to Take-Two follows:
Dear Strauss:
Thank you for your letter of February 15, 2008. While I appreciate its
courteous tone and value our ongoing dialogue, I am disappointed that you have
rejected Electronic Arts Inc.#DY#s ("EA#DY#s") ?25 per share cash offer to acquire
Take-Two Interactive Software, Inc. ("Take-Two") and declined to engage in the
friendly negotiations we proposed. We continue to believe that an acquisition of
Take-Two by EA is in the best interests of your shareholders, employees and
other constituents, and we remain interested in acquiring Take-Two. So, to
further demonstrate our seriousness and encourage you to move forward now, I am
writing to increase EA#DY#s offer to acquire all of the outstanding shares of
Take-Two to ?26 per share in cash. This offer is subject to Take-Two agreeing by
February 22, 2008 to commence negotiation of a definitive merger agreement and
to permit EA to commence a limited due diligence review of Take-Two.
Our revised all-cash offer represents a 64% premium over Take-Two#DY#s most
recent closing price and a 63% premium over Take-Two#DY#s 30-day trailing average
price (based on prices as of market close on Friday, February 15th). We believe
our offer represents a unique and compelling opportunity for Take-Two
shareholders to maximize the value of their investment in the company, with
materially lower risk than if Take-Two proceeds on a stand-alone basis.
We also believe that the transaction we are proposing represents a uniquely
attractive opportunity for Take-Two#DY#s creative teams and key employees. EA is a
diversified leader with well-established franchises and proven intellectual
properties, global reach, and significant financial resources. I know we both
agree that Take-Two#DY#s talented creative teams deserve a permanent home within a
stable and growing publisher that provides these teams an environment to do what
they do best, create great games. EA is organized in a four-label model that
provides our creative teams the autonomy they need to fully realize their
creative ambitions, while also providing a stable and supportive corporate and
publishing infrastructure which allows them to best address the global
marketplace. We have the resources to make the significant investments in
technology and infrastructure needed for the most creative and innovative games
in the industry. In short, a combination with EA would provide Take-Two#DY#s
studios and employees a combination of the right resources for investment and
global reach, and the right environment to do their best work.
Read the the full official press release at Yahoo.
[Editor:Stella]
