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Take-Two opens door to third-party offers

Wed 26 Mar 2008 11:38am GMT / 7:38am EDT / 4:38am PDT
Business

Publisher begins talks with possible business partners as Zelnick dismisses EA's offer as "wrong price, wrong time"

Take-Two has said that following EA's USD 26 per share offer to buy the company it has received interest from a number of third-parties, and is now opening it doors to discussions with all interested companies.

Take-Two's board of directors has unanimously dismissed Electronic Arts' offer to acquire the struggling publisher and it is now seeking alternatives to maximise the value of the company for the shareholders, which may include acquisition or business partnerships.

"The board has commenced a process for considering strategic alternatives in order to be prepared to engage in discussions with any parties, including EA, interested in a strategic business combination following Take-Two's release of Grand Theft Auto IV," said the company in a statement.

"The company has received indications of interest from third parties with respect to possible business combination transactions involving the company since EA's announcement, but no substantive discussions have yet occurred," detailed Take-Two.

Chairman Strauss Zelnick has again dismissed EA's offer as opportunistic in the run up to the the release of Grand Theft Auto IV on April 29.

"Our Board, after careful review, has unanimously determined that Electronic Arts' offer continues to provide insufficient value and remains opportunistically timed to capture the value of the upcoming Grand Theft Auto IV launch at the expense of our stockholders," said Zelnick.

"We are effectively working toward a process to review all available options to maximise this value, either as an independent company or in combination with a third party, and are open to beginning informal discussions starting now.

"Our stockholders' interests would hardly be served by accepting an offer from EA at the wrong price and the wrong time," he added.

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