EA Agrees to FTC Delay in Take-Two Acquisition
Federal Trade Commission [http://www.ea.com] regulators.
A report by 2K Sports [http://www.reuters.com/article/mergersNews/idUSN0438569620080604]series, and many observers have suggested that if the takeover is successful, EA will axe the 2K Sports brand, leaving EA Sports with a virtual monopoly.
The delay follows the most recent interview [http://www.escapistmagazine.com/news/view/83937]that Take-Two was "not a strategic priority" for the company and implied that EA's interest was beginning to wane. That extension set the tender offer deadline back another month, to June 16, although it remains unlikely that EA will be able to acquire sufficient shares through the tender offer to achieve its goal.
Shares in both Take-Two and EA rose slightly this morning, with Take-Two reaching $27.37 while EA achieved $49.25. EA's current offer for outstanding shares in Take-Two remains fixed at $25.74, making the deal worth roughly $2 billion. To learn more, check out the Take-Two [http://www.eatake2.com/] acquisition information sites.
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Federal Trade Commission [http://www.ea.com] regulators.
A report by 2K Sports [http://www.reuters.com/article/mergersNews/idUSN0438569620080604]series, and many observers have suggested that if the takeover is successful, EA will axe the 2K Sports brand, leaving EA Sports with a virtual monopoly.
The delay follows the most recent interview [http://www.escapistmagazine.com/news/view/83937]that Take-Two was "not a strategic priority" for the company and implied that EA's interest was beginning to wane. That extension set the tender offer deadline back another month, to June 16, although it remains unlikely that EA will be able to acquire sufficient shares through the tender offer to achieve its goal.
Shares in both Take-Two and EA rose slightly this morning, with Take-Two reaching $27.37 while EA achieved $49.25. EA's current offer for outstanding shares in Take-Two remains fixed at $25.74, making the deal worth roughly $2 billion. To learn more, check out the Take-Two [http://www.eatake2.com/] acquisition information sites.
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