Apps & Software
EA To Make Hostile Bid For Take-Two: Take The Money And Run
Published:
Electronic Arts (NASDAQ: EA) is not going to wait any longer for Take-Two (NASDAQ: TTWO) to put off the larger company’s $26 a share offer. Take-Two claims it is looking for a better deal,
But, no better deal has come along. In TTWO’s latest quarter, the company lost money. Before the EA offer, Take-Two shares traded at $17. There will be no other bid from anyone else. Take-Two is a perfect fit for larger video game firm EA. The combination will allow for large cuts in staff, overhead and marketing costs.
To get what it wants, EA will begin a hostile bid for Take-Two’s shares. According to The Wall Street Journal "EA plans a tender offer to acquire all of Take-Two’s outstanding shares for $26 each."
Most companies which receive an offer at a huge premium from a larger company in their industry should simply not waste time fighting. The lessons of Dow Jones with the bid from News Corp (NYSE: NWS) and Microsoft’s (NASDAQ: MSFT) offer for Yahoo! (NASDAQ: YHOO) tell the same thing. The chance to save money by putting together two operations in the same basic business combined with a price offer way above market almost always leads to the same end. Wall St. quickly understands that it is the best deal in the world.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
