Take-Two Interactive responded to today's hostile takeover bid from Electronic Arts for $2 billion. In the new release from Take-Two, the board confirms EA’s offer and states it as “inadequate in multiple respects and not in the best interests of Take-Two’s stockholders.” They believe they are trying to take advantage of them in their time of greatness.
"After careful evaluation, the Board has determined that EA’s proposal substantially undervalues Take-Two’s robust and enviable stable of game franchises, exceptional creative talent and strong consumer loyalty.Take Two Executive Chairman Strauss Zelnick is quoted:
We believe EA’s unsolicited offer is highly opportunistic and is attempting to take advantage of our upcoming release of Grand Theft Auto IV, one of the most valuable and durable franchises in the industry."
Seems as they know what Electronic Arts really wants so they are delaying discussion on this after the release of Grand Theft Auto IV on April 30, 2008. Go Take-Two!
"Electronic Arts’ proposal provides insufficient value to our shareholders and comes at absolutely the wrong time… Thanks to the extraordinary efforts of our creative and business teams, Take-Two has made enormous strides in the past 10 months toward our common goal of being the most creative, innovative and efficient company in our industry…
Given the great importance of the Grand Theft Auto IV launch to the value of Take-Two, the Board has determined that the only prudent and responsible course for our Company and its stockholders is to defer these discussions until immediately after Grand Theft Auto IV is released.
Therefore, we offered to initiate discussions with EA on April 30th, 2008 (the day after Grand Theft Auto IV is scheduled to release). We believe this offer demonstrated our commitment to pursuing all avenues to maximize stockholder value, while we believe that EA’s refusal to entertain this path is evidence of their desire to acquire Take-Two at a significant discount, whereas we believe this value rightly belongs to our stockholders.
[BREAKING - Take Two Fires Back at EA]