Posted by: Matt Vella on April 17
Electronic Arts (ERTS) set a deadline of April 18 for Take-Two Interactive (TTWO) shareholders to take the company up on its $2 billion offer, or roughly $26 per share. The big question is: what will happen tomorrow?
If shareholders jump on the offer as it is, EA will be able to book GTA revenues as its own and stop Take-Two from plowing profits back into titles that compete with its own wares. If shareholders hold out for a higher price, as Take-Two’s management has ardently suggested they do, it could be weeks or months before a deal happens — if at all.
But, yes, there’s more. The fabulous new news editor of Kotaku, Leigh Alexander, has filed a great piece on every possible angle to the deal over at the games blog. It’s worth a read for the nitty-gritty twists and turns so far as well as for many of the possible outcomes. With so much detail, it’s a bit of three-dimensional chess in space with no gravity et cetera, but most definitely an interesting read on the eve of the deal. (There are also great links to the background docs.)
Check it out.
No longer child's play, the booming global games market is worth billions of dollars. In Games, Inc., BusinessWeek Innovation writer Matt Vella and Tokyo correspondent Kenji Hall analyze emerging business trends in video games and interactive entertainment. They’ll examine everything from button-mashing, chart-topping, console games to serious games commissioned by big corporations to train staff. They’ll also map the evolution of expansive virtual worlds and go behind the strategies at companies that are turning play into big business.