Filed under: Earnings reports, Deals, Industry, Electronic Arts (ERTS)
Big video-game publisher Electronic Arts (NASDAQ: ERTS) is sick of being ignored by takeover target Take-Two Interactive (NASDAQ: TTWO). The smaller company states it is trying to find other offers to top the EA bid.
Electronic Arts has decided to make its bid hostile. According to The Wall Street Journal “EA plans a tender offer to acquire Take-Two’s shares for $26 each, the price it offered the company last month.” The tender offer will last though April 11.
Take-Two shareholders should be relieved. No other bid has emerged and several big shareholders have dumped their shares, a sign that the EA offer is as good as it gets. Take-Two shares traded just above $16 before the takeover bid. The company showed a healthy loss in its most recent quarter and management has not articulated any plan to make things substantially better.
Take the money and run.
Douglas A. McIntyre is an editor at 247wallst..com.
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