Electronic Arts: Not All About GTA IV?

EA changes bid and date.

Posted by Staff
Electronic Arts: Not All About GTA IV?
Electronic Arts has - as expected - changed the date at which its (previously) $26 (13) per share bid to take over Take-Two Interactive expires.

Not only that, it has also dropped its bid to $25.74 per (12.50). This is a result of the T2's shareholders agreeing to hand over 1.5m shares 'restricted' stock to Zelnick Media at last night's AGM.

The new 'Expiration Date of the Offer' is until 11:59 p.m., New York City time, on Friday, May 16, 2008... unless further extended.

So, this is after the April 29th global launch of GTA IV by the Take-Two owned Rockstar. By the 16th, initial sales figures will be available for the game. In the video game industry the vast majority of sales occur in the first week on sale. Two weeks down the line from GTA IV Day, Take-Two's stock price will have stabilised following and expected huge boost (it closed yesterday down 24 cents to $25.85).

With the Activision/Blizzard organisation (valued at around 4.5 billion) coming around the corner like an angry Franco-American bull, challenging EA for dominance, is the fact that EA is remaining in the bidding more a sign of challenge to the new organisation? Or is the drop in offer price offering the company a neat way out of a bid that appears not to have captured a short-term win (GTA IV)?

We await with a tiny bit of "Get on with it, all this cat'n'mouse is growing tiresome"!

Read the official record here.

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