“Take-Two’s Board continues to be 100 per cent committed to maximising stockholder value and remains unanimous in continuing to recommend that our stockholders not tender their shares to EA,” responded Strauss Zelnick, Take-Two’s chairman.\

“We are fully engaged in a formal process to evaluate strategic alternatives that have the potential to deliver greater value than EA’s inadequate offer. As part of this process, we continue to engage in meaningful discussions with multiple parties, a number of whom have been conducting due diligence. We also remain absolutely focused on executing on our strategic and business objectives.”

Take-Two rejected a previous offer in February and since then stock market traders have been expressing little confidence that the deal will ever go through.

“In February, Take-Two’s board rejected EA’s offer as inadequate. Since then, the record-shattering release of Grand Theft Auto IV, the exciting announcement of a BioShock movie, and our ability to deliver financial results exceeding expectations have further demonstrated that our value-creation potential is greater than EA’s offer,” said Ben Feder, Take-Two’s CEO.

“Take-Two is also continuing to create significant value through the development of world-class entertainment products, as well as improved operational and financial performance. Our stockholders will be the beneficiaries of these achievements, and it is management’s mission to deliver the greatest value possible for them,” Feder added.

Source

Post from: Games Industry Wire

CEO Jason Kingsley revealed that Rebellion had been keeping tabs on the progress of Razorworks for two years, since the company’s previous acquisition from Empire of Strangelight: “We heard some very good things about the set-up, the team and their approach, which is very similar to our own,” he said. “So, when we had the opportunity to buy the studio, we seized it with both hands.”

And Chris Kingsley, CTO, added: “The Razorworks team will be joining us in the Oxford studio and will bring a raft of experience to our current and new projects. Razorworks will also be the focal point in expanding Rebellion’s knowledge base and portfolio.”

Rebellion was recently identified as one of the leading independent studios in Europe, and has been responsible for titles including The Simpsons Game and Star Wars Battlefront: Renegade Squadron. Razorworks, which was established in 1996, previously developed the Ford Racing series of titles for consoles.

Source

Post from: Games Industry Wire

But EA still secured the new loan from Morgan Stanley Senior Funding, Inc., Morgan Stanley Bank, BNP Paribas, BNP Paribas Securities Corp., The Bank of Nova Scotia and KeyBank National Association.

The funding organizations will be able to provide EA with up to $1 billion of senior unsecured loan term financing at any time until January 9, 2009. Funds would be used towards offer “and/or the merger.”

EA will be required to pay back the loan, along with interest.

Source

Post from: Games Industry Wire

Chris Deering, chairman at Codemasters said, “[Our] success and recent innovations in the racing game space makes the company more than appropriately tuned for the challenge. The combination of FORMULA 1’s new momentum of expansion and Codemasters’ contemporary technology and past experience is the breaking of a new dawn for the sport, on the track and on the HD game screen.”

Having remained dormant since last year’s Studio Liverpool PlayStation 3 title Formula 1 Championship Edition, the news comes following murmurings that Sony were effectively being priced out of the licence by Bernie Ecclestone’s Formula One Association. Any future title will mark the first time an official Formula One title has been seen outside Sony hardware since EA offered up Formula 1 Career Challenge in 2003.

As of yet it is unknown when we can expect the first fruits of the new deal, though a statement today suggested it will utilize the EGO engine that Codemasters has put to good effect in the forthcoming GRID game.

Source

Post from: Games Industry Wire

“[EA's proposal] undervalued the company at $26 per share, and it certainly undervalues Take-Two at $25.74,” chairman Strauss Zelnick, said in a statement Friday following the revised offer.

The hostile bid for the Grand Theft Auto publisher has so far granted EA with just over 6.4 million shares, or 8.3 percent of Take-Two’s total shares as of market close Thursday.

Zelnick added, “The minuscule number of shares tendered, as well as the strong vote in favor of the proposals presented at our annual meeting, offer indisputable evidence that our stockholders regard our efforts to enhance Take-Two’s stockholder value as superior to the EA offer.”

Zelnick said that the offer “fails to compensate stockholders” the talent, properties and revitalization initiatives at Take-Two.

EA issued the new offer following Take-Two’s shareholder meeting Thursday evening in New York, when investors approved amendments to the company’s stock incentive plan.

He reiterated that Take-Two has “received expressions of interest from a number of interested parties.” The company plans to enter such discussions following the April 29 launch of Grand Theft Auto IV.

Source

Post from: Games Industry Wire

Founded in 2002, Gamestar employs more than 90 staff members and runs offices in the Chinese cities of Shanghai and Wuhan, according to the statement.

Disney Interactive Studios General Manager Graham Hopper was quoted as saying that Gamestar will contribute to his company’s “global growth plans” and new products.

Disney Interactive Studios used to hire Gamestar for outsourcing work, the Hollywood trade publication Variety reported on its Asian news Web site. Following the acquisition, Gamestar will help with existing projects but may move on to developing original games for the Chinese market, Variety reported.

Disney movies and merchandise are already common in China. Walt Disney Internet Group has also reached a deal with China’s Shanda Interactive Entertainment to launch Disney-themed Internet-based video games.

Source: BusinessWeek

Post from: Games Industry Wire

1. A “flip-in” allows existing shareholders (except the acquirer) to buy more shares at a discount.
2. The “flip-over” allows stockholders to buy the acquirer’s shares at a discounted price after the merger.

For its part, EA continues to consider its offer to buy Take-Two at $26 a share (64 percent more than the stock’s closing price on February 15) is a fair offer. The proposition was originally made on March 13, but Take-Two has repeatedly refused the offer.

Source

Post from: Games Industry Wire

This is a great opportunity for Take-Two shareholders. We believe Take-Two investors will see our tender offer as the best way to maximize the value of their investment in Take-Two. This tender offer provides a clear process to complete the proposed transaction. For EA shareholders, the combination would add additional intellectual properties to our already strong portfolio and welcome Take-Two’s talented creative teams to the great development organization we’ve built at EA.

Offer to Purchase for Cash All Outstanding Shares of Common Stock of Take-Two Interactive Software, Inc. at $26.00 Net Per Share by EA08 Acquisition Corp., a wholly-owned subsidiary of Electronic Arts Inc.

THE OFFER AND WITHDRAWAL RIGHTS EXPIRE AT 12:00 MIDNIGHT,NEW YORK CITY TIME, ON FRIDAY, APRIL 11, 2008, UNLESS THE OFFER IS EXTENDED.

Source

Post from: Games Industry Wire

Last week we informed you of EA’s unsolicited proposal to acquire Take-Two, which our Board rejected. Although there is no update on the proposal, we have been working to substantively address the understandable concerns that some of you may have as a result of the proposal. Therefore, we have established a formal severance plan for the benefit of our employees, and are publicly announcing that plan today.

Please note: we are not assuming that any change in control will occur or, if there were a change, that any positions would be affected.

Our “Change in Control Employee Severance Plan” provides for minimum levels of compensation for all employees in the event that an employee’s position is terminated as a result of a change in control of the Company. These types of plans are fairly common for publicly traded companies. In fact, both Electronic Arts and THQ have change in control severance plans. If you have any questions about our plan, please speak with your manager, local HR director or Courtney Kelley.

We hope that this benefit will alleviate some of the concerns you may have, and allow you to remain fully focused on your responsibilities. You are critical to the success of Take-Two. The most important contribution each of us can make during this period is doing our jobs with the same focus, skill and creativity we always have.

We remain committed to open communication with all of you, and will continue to update you when and as we can.

Creativity is at an all-time high at Take-Two — this is an incredibly exciting time for all of us and also for our customers who depend on us for cutting-edge innovation and the industry’s most exciting games. We know we won’t disappoint.

Sincerely,

Strauss and Ben

via Kotaku

Post from: Games Industry Wire

According to Reuters, Take Two has said that the offer was at a “devaluation” of what the company has done and is trying to do and that it came at “absolutely the wrong time.” Additionally, Take-Two called the bid “highly opportunistic” on the heels of the upcoming release of Grand Theft Auto IV on April 29.

Take-Two has offered to enter discussions with EA the day after GTA IV’s release, on April 30. Wise move , Take-two.

Post from: Games Industry Wire