Take-Two (TTWO) Tumbles 24% as EA Terminates Talks
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Shares of Take-Two Interactive Software (Nasdaq: TTWO) are down more than 24% today following an Electronic Arts (Nasdaq: ERTS) announcement late Sunday that it would terminate its merger discussions with the company.
During the last six months, Take-Two shareholders have rejected multiple bids by Electronic Arts, the first of which was for $26 per share, while the second unsolicited offer was lowered to $25.74 per share. Shareholders viewed both bids from Electronic Arts as inadequate.
Take-Two most recently traded at $16.45, down about $5.44, or 24.9% from Friday's closing price of $21.89.
Shortly after Electronic Arts released the termination news, Take-Two issued a statement in response. Strauss Zelnick, Chairman of Take-Two said, "We remain focused on creating value for our stockholders and our consumers. This has been our goal since EA launched its conditional and unsolicited bid six months ago, a bid which was repeatedly rejected by our stockholders. As part of that commitment, we remain actively engaged in discussions with other parties in the context of our formal process to consider strategic alternatives."
Take-Two's CEO, Ben Feder, also commented: "Take-Two's business has continued to strengthen since the time EA first made its offer. We have delivered terrific products to our consumers and we've been rewarded with very strong financial performance. We have an exciting future ahead of us, powered by our profitability, a significant cash position, the absence of debt, an undrawn credit facility and a terrific lineup of games. We are confident in the unique value of our business given our strong position in what is a growing and dynamic industry."
Take-Two Interactive Software, Inc. engages in the development, publication, and distribution of interactive software games designed for personal computers, video game consoles, and handheld platforms worldwide.
During the last six months, Take-Two shareholders have rejected multiple bids by Electronic Arts, the first of which was for $26 per share, while the second unsolicited offer was lowered to $25.74 per share. Shareholders viewed both bids from Electronic Arts as inadequate.
Take-Two most recently traded at $16.45, down about $5.44, or 24.9% from Friday's closing price of $21.89.
Shortly after Electronic Arts released the termination news, Take-Two issued a statement in response. Strauss Zelnick, Chairman of Take-Two said, "We remain focused on creating value for our stockholders and our consumers. This has been our goal since EA launched its conditional and unsolicited bid six months ago, a bid which was repeatedly rejected by our stockholders. As part of that commitment, we remain actively engaged in discussions with other parties in the context of our formal process to consider strategic alternatives."
Take-Two's CEO, Ben Feder, also commented: "Take-Two's business has continued to strengthen since the time EA first made its offer. We have delivered terrific products to our consumers and we've been rewarded with very strong financial performance. We have an exciting future ahead of us, powered by our profitability, a significant cash position, the absence of debt, an undrawn credit facility and a terrific lineup of games. We are confident in the unique value of our business given our strong position in what is a growing and dynamic industry."
Take-Two Interactive Software, Inc. engages in the development, publication, and distribution of interactive software games designed for personal computers, video game consoles, and handheld platforms worldwide.
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