EA Take-Two Takeover Goes Hostile

As expected, EA has now taken their takeover bid into hostile takeover territory as Take-Two’s board continues to hold out.

Electronic Arts has officially announced that it has commenced a ‘hostile’ tender offer for all outstanding shares of Take-Two stock at $26 the same price as its original formal offer last month.

That initial unsolicited offer was rejected by Take-Two directors, claiming that it undervalued the company despite representing a 50 percent premium over then current share prices. Take-Two subsequently refused to negotiate further, until after the release of subsidiary Rockstar Games’ Grand Theft Auto IV in April.

Analysts are split on whether this ‘hostile’ takeover, so-called because it would bypass Take-Two’s company directors and go directly to shareholders, will be successful and whether the per share offer price will have to be increased.

Take-Two itself has urged shareholders to withhold action.