February 24, 2008
EA Proposes to Acquire Take-Two for $2.0 Billion
On Sunday, EA announced that it has proposed to purchase Take-Two for $26 per share in cash, which is equal to approximately $2.0 billion and an 64% percent premium on the going rate for the stock over the last 30 days. The move is bound to give the publisher near-complete dominance in the gaming world, giving them complete control of some of the best IPs in the industry. EA have cheekily set up a takeover website, eatake2.com, which outlines the takeover details.
"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," said John Riccitiello, CEO of EA. "Take-Two's game designers would also benefit from EA's financial resources, stable, game-focused management team, and strong global publishing capabilities."
However, this is not going to be pretty for us gamers, with EA's current strategy of releasing sequels every year not only hurting the pockets of gamers, but also perhaps the quality of it's games. Hopefully, EA can see that some of the best titles in the industry are those which have been given a reasonable amount of time to ferment.
Also, we must remember this is just a proposal, and Take-Two recently dismissed a $25 per share merger from EA, so perhaps it might not happen, if we're lucky. If it does happen though, it raises a huge question for the future of the industry, with less competition and too many "super-publishers", could creativity be throttled in favor of regular yearly sequels?