He's Just Not That Into You: T2 Reject's EA's 4th Offer
Today Take-Two responded to the latest extension of EA's unsolicited conditional offer of acquisition. The answer? Still 'No.' T2 Chairman Strauss Zelnick made it clear that while the notion of acquisition is far from being off the table completely, EA needs to up its ante and treat Take-Two with a little more respect. You know, make her feel like a real lady:
"The latest extension of EA's unsolicited, highly conditional tender offer does not alter the fact that their proposal still significantly undervalues Take-Two, a fact that is reflected in the overwhelming number of stockholders who still have not tendered their shares."
Less than 8% of T2's shareholders have tendered to EA's offer thus far, a number that isn't much higher than it was the last time EA extended the offer. Or the time before that.
The elephant in the room, as far as EA is concerned, is the blockbuster above-and-beyond success of GTA IV, which was still in production when EA initially swooped in. By now, T2's theoretical value will have swollen well past EA's current bid, a sentiment echoed by T2 CEO Ben Feder:
"Take-Two's vast potential to create and enhance stockholder value has become even more evident in recent weeks, with the runaway success of Grand Theft Auto IV, a product pipeline that is one of the strongest and most creative in our history, and continued operational and financial progress. We believe that any alternative we consider must fully reflect the value we are creating and capture that value for the benefit of our stockholders."
In other words, you can't buy a high-class call girl with $20, EA - so step off or come correct, son!
PRESS RELEASE
TAKE-TWO INTERACTIVE SOFTWARE, INC. RESPONDS TO ELECTRONIC ARTS' FOURTH EXTENSION OF TENDER OFFER
New York, NY-- June 17, 2008 -- Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today responded to Electronic Arts Inc.'s (NASDAQ:ERTS) announcement that it is extending for a fourth time its unsolicited conditional tender offer to acquire all of Take-Two's outstanding shares.
As reported by EA, only 6,139,824 of Take-Two's outstanding shares, or approximately 7.9% of the total, tendered into EA's offer as of 5:00 p.m. Eastern time on June 16, 2008.
"The latest extension of EA's unsolicited, highly conditional tender offer does not alter the fact that their proposal still significantly undervalues Take-Two, a fact that is reflected in the overwhelming number of stockholders who still have not tendered their shares," said Strauss Zelnick, Chairman of the Board of Take-Two. "Our Board of Directors remains in unanimous agreement that the proposal is contrary to the best interests of Take-Two stockholders, and the Board continues to recommend that stockholders not tender their shares to EA. The Board remains focused on the strategic process that began formally on April 30 to consider all alternatives to maximize value. We believe that these alternatives, which may include a business combination or remaining independent, will deliver greater value to stockholders than the current EA offer."
Ben Feder, Chief Executive Officer, commented, "Take-Two's vast potential to create and enhance stockholder value has become even more evident in recent weeks, with the runaway success of Grand Theft Auto IV, a product pipeline that is one of the strongest and most creative in our history, and continued operational and financial progress. We believe that any alternative we consider must fully reflect the value we are creating and capture that value for the benefit of our stockholders."
For more information, please visit www.taketwovalue.com.
tiny dancer
Posted to Hot Stuff, Miscellany on 17 June 2008
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