Rather than delving into all the financial aspects the WSJ article has on the current state of EA’s potential takeover of Take-Two, I’ll paraphrase and dish out what’s important. Take-Two currently has no other bids than the $2 billion EA is offering them. That puts Take-Two’s shares at about $26/share, which is up roughly 50 percent since EA publicly announced their intentions to take over the software company.
But without any other suitors, Take-Two is holding out until after the launch of GTA IV to boost their worth, which has been their main arguing point over EA’s offer. They’ve lambasted EA because GTA IV is expected to sell roughly $400 million in the first week. Take-Two is adamanetly telling shareholders to wait it out. EA’s tender offer expires tomorrow at midnight. If EA is unable to sway the shareholders to sell then they have the option to extend the offer and possibly raise their offer. I’d say it’s in TT’s shareholder’s best interest to wait it out.
WAIT – IT – OUT! …if at all! We’ve all heard it before, I sure hope EA doesn’t buy out Take Two
I hate to say it — but TT is acting poorly here. Yes, GTA IV will sell like mad, but it seems like a one trick pony. EA has far more games and titles.
Sure, the stock will go up for TT after GTA IV’s release, but won’t stay up there for long.