How high will EA have to raise to reel in Take-Two?
Posted by: admin in Engagements and Deals NewsFiled under: Deals, Engagements
It looks like business as usual at Take-Two Interactive Software Inc. (NASDAQ: TTWO), which on Tuesday announced it would report first-quarter earnings after the close of trading on March 11. Behind the scenes, though, the video game company continues to try holding off Electronic Arts Inc. (NASDAQ: ERTS) or getting it to raise its $26 a share, or $1.9 billion acquisition, offer.
Take-Two has publicly stated it won’t talk with EA until after it releases its “Grand Theft Auto IV” video game on April 29. But we wouldn’t be surprised if the companies do get together before then to see if there’s some common ground on a more amicable takeout. Take-Two knows EA can increase its offer price into the $30 per share range and still have the deal be accretive. But it also knows that if EA pulls the offer, its shares will drop closer to the $17 level, where they were trading before EA’s bid.
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