Electronic Arts to comment on Take-Two hostile bid today
Redwood City (CA) – Video game juggernaut Electronic Arts will comment on its failed hostile takeover bid of Take-Two Interactive today. Executives are expected to speak to the media before the opening of US stock markets and many analysts believe the company will extend the $2 billion offer which expired last Friday.
Electronic Arts made its initial bid of $25.74 a share for Take-Two back in April and then extended the offer by one month when less than 10% of the stock was tendered. Take-Two executive believe the price is too low and given the recent success of Grand Theft Auto IV they are probably right. The graphically violent (but oh so fun) car-jacking game broke video game sales records by raking in more than $500 million in its first week of release.
Electronic Arts, in contrast, isn't doing that well and recently reported a fourth quarter loss of $94 million and Chief Financial Officer Eric Brown says the company will miss revenue estimates for the first half of 2009. EA intends to secure $1 billion in bond sales to help pay for the Take-Two takeover.