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
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
