Business Play Action Map

Video Game giant Electronic Arts wants to acquire Take-Two, another video game manufacturer. Take-Two has not been profitable of late, but does own several successful games, including the Grand Theft Auto series. EA made an unsolicited bid for Take-Two only two months before the release of Grand Theft IV.

While the bid was at a significant premium to Take-Two''s recent stock price, Take-Two still believed the offer was too low and rejected it. EA tried to appeal to Take-Two shareholders by releasing its offer letter. Take-Two immediately fired back with responses from the company''s CEO, large shareholders as well as an SEC filing announcing that it had other merger possibilities. EA remined relatively quiet while Take-Two was running defensive plays; however, once EA moved it flaunted its action with an ad in The Wall Street Journal. Take-Two asked its shareholders to hold off on responding to the EA offer.

Post by Megan Klein, MA candidate