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Electronic Arts, Inc (ERTS)
Electronic Arts Ends Merger Talks With Take Two
Electronic Arts Ends Merger Talks With Take Two
Reuters - September 14, 2008
Submitted by zukaus (4) at 4:44PM PST on September 14, 2008
U.S. video game giant Electronic Arts Inc has pulled away from an offer to buy rival Take Two Interactive Software Inc after pursuing the game publisher for more than six months.
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0zukaus posted on Electronic Arts, Inc (ERTS) at 4:45PM PST on September 15, 2008. RE: Electronic Arts Ends Merger Talks With Take Two@lstormy10,
Further evidence that TTWO management is not working for its shareholders.[ Oracle ] [ Level 30 ] [ Rank: 4 ]bids
1lstormy10 posted on Electronic Arts, Inc (ERTS) at 3:58PM PST on September 15, 2008. RE: Electronic Arts Ends Merger Talks With Take Two@apujanata,
Well, either way, the shares of T2 have slid downhill today.[ Oracle ] [ Level 20 ] [ Rank: 294 ]bids
1apujanata posted on Electronic Arts, Inc (ERTS) at 10:12PM PST on September 14, 2008. RE: Electronic Arts Ends Merger Talks With Take Two@lstormy10,
Did you assumed that T2 management / shareholder are lowering their asking price because of GTAIV underperformance ? I don't believe that is the case here. From article : "EA has been consistent in their approach regarding value and our shareholders have repeatedly rejected the price they offered ($25.74). There's very little else more that meets the eye."
I believe that T2 didn't lower their asking price, and when EA calculate the performance of T2, they believe that the asking price is too high, so they withdraw the offer.
As of yesterday, the market price of T2 is only $21.xx, significantly lower than EA's offer ($25.74)[ Oracle ] [ Level 30 ] [ Rank: 14935 ]bids
1lstormy10 posted on Electronic Arts, Inc (ERTS) at 9:13PM PST on September 14, 2008. RE: Electronic Arts Ends Merger Talks With Take Two@apujanata,
Any sense of GTA IV "underperforming" would help EA in their quest to gobble up Take Two because it would allow them to pick up Take Two for cheaper and make the shareholders of Take Two a little bit more willing to sell.[ Oracle ] [ Level 20 ] [ Rank: 294 ]bids
1apujanata posted on Electronic Arts, Inc (ERTS) at 5:15PM PST on September 14, 2008. RE: Electronic Arts Ends Merger Talks With Take Two@zukaus,
Is this (pulling away) caused by due diligence, especially those information that Electronic Arts received from Take Two's management presentation that contain non-public information ?
Article here
Or is it more because GTA IV underperform comprared to expectation ?[ Oracle ] [ Level 30 ] [ Rank: 14935 ]bids
17zukaus posted on Electronic Arts, Inc (ERTS) at 4:44PM PST on September 14, 2008. Article: Electronic Arts Ends Merger Talks With Take Two
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Or that they are "big-headed" enough to believe their own spiel. The market has spoken, and it believe that the right price for T2, is only 17.
Now, the question is whether Microsoft will step in (buy out T2), or will T2 lower their asking price (to EA's 25.74), which is 50% higher than the current market price).
If I am a shareholder of T2, I would demand T2 to sell to EA, at 25.74 price point.