Maybe Electronic Arts is trying to wear down the management of Take-Two Interactive. EA said today it was once again extending its $2 billion tender offer for all of the shares of Take-Two.
The previous offer of $25.74 a share expired on Monday and remains unchanged. The offer has now been extended until July 18. Owen Mahoney, senior vice president of EA corporate development, said in a statement, “We congratulate Rockstar on the successful launch of GTA IV but believe our offer reflects a full and fair price based on the long-term value of Take-Two’s entire operation.” Grand Theft Auto IV has sold more than 11 million copies since its launch in April. The EA-Take-Two drama has been going on since February.
Take-Two issued a statement saying that EA was boring it to death and that was a reflection of the kind of games that EA makes. (Just kidding!). Strauss Zelnick, Take-Two chairman, recently said that Take-Two’s sports game portfolio is much better than EA’s. Take-Two’s actual statement said that the offer significantly undervalues Take-Two, which remains focused on exploring its strategic alternatives.
The extension of the offer allows the Federal Trade Commission to proceed with its review of the deal, EA said. As of Monday, about 6.1 million shares of Take-Two had been tendered. That’s about 8 percent of the total. It seems this is still an offer that shareholders can refuse. EA needs to go back and play its Godfather game again.