EA Extends T2 Buyout Deadline 4th Time

Both Stocks Down on News

Once again, Electronic Arts extended the deadline on its proposed buyout offer to Take-Two Interactive.

The new deadline for the $25.74 a share proposal is now July 18th.  This is the fourth time EA has extended its deadline.

Take-Two’s response follows:

“The latest extension of EA’s unsolicited, highly conditional tender offer does not alter the fact that their proposal still significantly undervalues Take-Two, a fact that is reflected in the overwhelming number of stockholders who still have not tendered their shares,” said Strauss Zelnick, Chairman of the Board of Take-Two. “Our Board of Directors remains in unanimous agreement that the proposal is contrary to the best interests of Take-Two stockholders, and the Board continues to recommend that stockholders not tender their shares to EA. The Board remains focused on the strategic process that began formally on April 30 to consider all alternatives to maximize value. We believe that these alternatives, which may include a business combination or remaining independent, will deliver greater value to stockholders than the current EA offer.”

Ben Feder, Chief Executive Officer, commented, “Take-Two’s vast potential to create and enhance stockholder value has become even more evident in recent weeks, with the runaway success of Grand Theft Auto IV, a product pipeline that is one of the strongest and most creative in our history, and continued operational and financial progress. We believe that any alternative we consider must fully reflect the value we are creating and capture that value for the benefit of our stockholders.”

Both stocks are down slightly on the day.  At one point ERTS tanked below 46.40, though it has recovered some and is hovering near $47 a share.  Take Two stock, on the other hand, has continued to sink down today.  At points it’s hit below $26.30 a share–that’s important because EA’s very first offer was $26 a share.

This could be a cat-and-mouse situation for months to come, but we’ll keep you up to speed every step of the way.