Take-Two Tells EA to Wait

Gamasutra reported today that Take-Two's board of directors replied with an open letter to EA's takeover deal, downplaying the premium value of this proposal and delaying serious discussions with EA till April 30th, 2008. Thus, Take Two is brushing off EA to take a seat and await Grand Theft Auto IV's anticipated release at the end of April, insuring a higher premium on their shares:

"We believe EA's unsolicited offer is highly opportunistic," the Take-Two response reads, "and is attempting to take advantage of our upcoming release of Grand Theft Auto IV, one of the most valuable and durable franchises in the industry."

The board has also said it has rejected the offer because it "values the Company at a significant discount to its public peers and does not compensate Take-Two for its intrinsic value and the substantial synergies that the proposed combination would create."

Chairman Strauss Zelnick commented that "in addition to undervaluing key elements of our business, EA's proposal fails to recognize the value we are building through our ongoing turnaround efforts, which will further revitalize Take-Two."

In addition to that EA launched a new website dedicated to the buyout proposal complete with all the public letters and SEC filings. Check it here: http://www.eatake2.com/

Read the rest at the Gamasutra.com