Electronic Arts to let Take-Two offer lapse
Posted: Mon Aug 18, 2008 3:28 pm
[size=6]Electronic Arts to let Take-Two offer lapse[/size]
[size=3]Reporting by Franklin Paul
Editing by Lisa Von Ahn[/size]
NEW YORK (Reuters) - Electronic Arts Inc (ERTS.O: Quote, Profile, Research, Stock Buzz) has decided to let its $2 billion buyout offer for Take-Two Interactive Software Inc (TTWO.O: Quote, Profile, Research, Stock Buzz) expire on Monday, but the two video game publishers are still in private talks.
EA said on Monday that it no longer believed it could benefit from completing an integration of Take-Two before the holiday shopping season, and that it had to reassess the value of its $25.74-per-share offer, given the passage of time since it first made the bid.
Take-Two shares fell nearly 6 percent in premarket trade on Monday to $23.38.
The news came after weekend talks between EA Chief Executive John Riccitiello and Take-Two Executive Chairman Strauss Zelnick.
As a result of the discussions, EA will let its tender offer for all of the currently outstanding shares of Take-Two common stock expire on Monday evening.
Take-Two management will make a presentation to EA on its three-year product release schedule and financial projections, Zelnick said in a letter to EA.
Take-Two has previously rejected EA's $2 billion bid for the publisher of the hugely successful "Grand Theft Auto" game, saying it was too low.
[size=3]Reporting by Franklin Paul
Editing by Lisa Von Ahn[/size]
NEW YORK (Reuters) - Electronic Arts Inc (ERTS.O: Quote, Profile, Research, Stock Buzz) has decided to let its $2 billion buyout offer for Take-Two Interactive Software Inc (TTWO.O: Quote, Profile, Research, Stock Buzz) expire on Monday, but the two video game publishers are still in private talks.
EA said on Monday that it no longer believed it could benefit from completing an integration of Take-Two before the holiday shopping season, and that it had to reassess the value of its $25.74-per-share offer, given the passage of time since it first made the bid.
Take-Two shares fell nearly 6 percent in premarket trade on Monday to $23.38.
The news came after weekend talks between EA Chief Executive John Riccitiello and Take-Two Executive Chairman Strauss Zelnick.
As a result of the discussions, EA will let its tender offer for all of the currently outstanding shares of Take-Two common stock expire on Monday evening.
Take-Two management will make a presentation to EA on its three-year product release schedule and financial projections, Zelnick said in a letter to EA.
Take-Two has previously rejected EA's $2 billion bid for the publisher of the hugely successful "Grand Theft Auto" game, saying it was too low.