Gamernomics: EA and Take-Two

Since last week, EA has been seeking a takeover of Take-Two Interactive, developer of the GTA franchise. Last Friday, Take-Two rejected a two billion dollar proposal by EA, but the latter company is at it again. In a story even picked up by Morning Edition as I heard this morning driving to work, EA is now launching a GTA-style hostile takeover of TT by going straight to the shareholders.

Electronic Arts is offering to buy out TT shares for $26 per share, which was a pretty good deal when TT was at $17.83 per share after Friday’s closing bell. Not so much this morning, as TT shares have jumped to $26.60 (at last check) and are expected to rise even more. That’s about a three year high for the stock, but EA says that it will not rest just yet – they want TT before GTA IV ships in April.

This is a pretty big story, and is getting major play in the news. At first I thought it was bigtime that Forbes put something out on it this morning, but now its all over the place. I suppose, as I think about it even more, this is actually pretty big news both inside and outside of the gaming community. As for us gamers: With the Blizzard/Activision merger and now this, are we seeing something similar to the consolidation of movie studios? That process has been around in film for a long time, but as the video game industry continually grows, more and more events like this could happen. Good or bad? What do you think? Will it effect the product?

We’ll be sure to keep you updated, but a great place to track every move is at Joystiq, where they’ll be updating this post throughout the day. You can also Track Take Two Interactive’s stock with Google Finance here. In the meantime, you can read up on business takeovers here. That is the first place that I am going…

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2 Responses to “Gamernomics: EA and Take-Two”

  1. I hope they never accept. EA has a track record of ruining original developers it acquires.

  2. Harmonix……

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