Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Monday, February 25, 2008

Electronic Arts Bids for Take-Two

Electronic Arts Inc. (Madden NFL) announcced an unsolicited $2 billion cash offer for Take-Two Interactive Software (Grand Theft Auto), after Take-Two's board rejected the $26 per share offer (50% premium over Friday's closing price) as inadequate.  The offer comes about two months before Take-Two will ship Grand Theft Auto IV, a hghly anticipated game.  Take-Two's Chairman said the offer was "opportunistic" and "woefully undervalued."  Take-Two has had new management since a dissident group of shareholders voted in a new board last March.  Under its former management, Take-Two had legal problems relating from both stock options backdating and accounting fraud.  WSJ, Electronic Arts Offers $2 Billion for Take-Two; NYTimes, Game Maker in $2 Billion Bid for Rival.

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