Rockstar going PS3 exclusive?

[cliffbo]

this is only a small snippet and there is little to back it up, but if this is true it would be a major fillip for Sony and us... and the reasons? i'll leave that for you to decide:

Just received the February 08 issue of Play Magazine (Afro Samurai cover) and tucked away in the GTAIV preview was this line: "The game is both PS3 and 360, but Rockstar has suggested that all further game development is going to be PS3 exclusive."

I doubt Rockstar and Take Two are in a financial position to leave all that Xbox 360 money on the table but maybe they plan to make the PS3 the lead platform going forward.

http://www.cheapassgamer.com/forums/showthread.php?t=170148

[Matt]

I doubt that they'd go exclusive, but I'd at least like to see them make PS3 the lead platform, or cut out this whole downloadable exclusive bullshit.

[Viper]

Throw some water on that fire, will ya?


Cliff, that was from a forum by a post made almost 4 weeks ago. I think the issue of that magazine would have released already and more substantial context have been posted.

[cliffbo]

Throw some water on that fire, will ya?


Cliff, that was from a forum by a post made almost 4 weeks ago. I think the issue of that magazine would have released already and more substantial context have been posted.

oh, i didn't read the date... :look: i agree, you would have thought something would have been mentioned by now if it were true... but who knows. there are reasons why i think Rockstar could be considering exclusivity though. when Take Two where paid the 50 million for the exclusive content they must have also been given reassurances that MS where going push hard drive equipped machines. Enter the 'Elite'. but that hasn't done as well as was expected. i believe part of that deal was that they would have to give MS the money back if the downloadable content fails (something along those lines) now can you imagine how Rockstar must be feeling at the moment when they see MS promoting the 'Arcade' with no hard drive? that's counter productive to say the least and could end up costing Take Two a lot of money for nothing. then we have to consider Rockstars approach to developing... every game they made got bigger and bolder, but the new game is smaller and more compact and that to me is simply because of storage space... compression or not, that has to sting a developer who rides on their stellar reputation and who know our expectations for the series grow exponentially with each new release.

[XboxEvolved]

I don't see how the Arcade pack would "hurt" Take-Two when the Arcade pack is geared towards family and kids. Are you suggesting that Microsoft should sell something meant for those audiences so they can buy a rated M title and content that will cost at least $10 later? Also the Elite has done incredibly well, and since it's inception has been hard to fine. Where did you get all your info, the same magazine that said Rockstar may go PS3 exclusive? ;)

[Matt]

Also the Elite has done incredibly well, and since it's inception has been hard to fine.

We have 27 at work.

Just saying.....

[cliffbo]

I don't see how the Arcade pack would "hurt" Take-Two when the Arcade pack is geared towards family and kids. Are you suggesting that Microsoft should sell something meant for those audiences so they can buy a rated M title and content that will cost at least $10 later? Also the Elite has done incredibly well, and since it's inception has been hard to fine. Where did you get all your info, the same magazine that said Rockstar may go PS3 exclusive? ;)

there will be many people who buy the 'Arcade' and don't know about the downloadable content available for GTA. Rockstar will have to hope that they buy a HD in the future, but 'ifs' are not good business. it's an odd strategy for a company that constantly goes on about the emerging downloadable market.

[XboxEvolved]

Yet, they are hard to find still, analyst, and retailers are low in stock. Where do you live?

Also cliffybo I will agree with you that having an HD-less SKU with a company that pushed dlc more than any other hardware company other than Apple with iTunes is strange, but if you look at it from MS's business point, the Arcade is meant to compete more with the Wii than it is the PS3, and when looking at a business point and historically, when a console is able to drop down to $200 or less is when it starts to sell much faster, and MS had this in mind since day one.

[Sephiroth_VII]

I don't see how the Arcade pack would "hurt" Take-Two when the Arcade pack is geared towards family and kids. Are you suggesting that Microsoft should sell something meant for those audiences so they can buy a rated M title and content that will cost at least $10 later?

According to my personal experience, a bug part of those who buy GTA are underage, so yes.

[cliffbo]

Yet, they are hard to find still, analyst, and retailers are low in stock. Where do you live?

well perhaps i am mistaken about the 'Elite'... :shrug: but the argument still holds water. out of that 17 million install base, how many are 'Core' or 'Arcade'? and even the 'premium' has limited space (less than 20GB). the 'Elite' may well have sold more machines than i thought, but even if it had 50% of the market, that's not ideal for Rockstar and MSs philosophy...

[cliffbo]

Yet, they are hard to find still, analyst, and retailers are low in stock. Where do you live?

Also cliffybo I will agree with you that having an HD-less SKU with a company that pushed dlc more than any other hardware company other than Apple with iTunes is strange, but if you look at it from MS's business point, the Arcade is meant to compete more with the Wii than it is the PS3, and when looking at a business point and historically, when a console is able to drop down to $200 or less is when it starts to sell much faster, and MS had this in mind since day one.

exactly why i think it's counter productive. the 'Arcade' will sell more on price and so reduce the amount of money Rockstar can make on DC... remember they have to give MS their money back if it doesn't go well. put yourself in Rockstars shoes.

[Matt]

Yet, they are hard to find still, analyst, and retailers are low in stock. Where do you live?

Check the location ;)

[XboxEvolved]

I don't know where that is sorry Matt. Also cliffybo, Microsoft and retailers have stated before that the Pro has sold the most by far out of all of their skus. MS actually pushed the Core very little, and has just recently began to push the Arcade at all. According to Microsoft, the retail channels that sell 360 the most will be replenished with far more Pro and Elite consoles. In my area at least, you cannot find either.

[Matt]

Fine, I'll do the work for you :P

http://en.wikipedia.org/wiki/Canterbury

Lots of Xbox's, lots of PS3's, no Wiis or DSs.

[cliffbo]

those who are buying the 'Arcade' will have to fork out money for a HD + the downloads. basically more people will experience the same game on the 360 as on the PS3

i'm here: http://en.wikipedia.org/wiki/Grimsby

[OG_Monkey]

those who bought the arcade are those who KNEW they would not be able to download anything so it doesn't concern them. The arcade 360 is like XE said, aimed towards families and kids. And if they wanna upgrade, they can always upgrade and buy a 20GB HDD for the price of what a premium cost or a 120GB one for a little extra. I highly doubt the ones who bought the arcade are the ones who'd buy something like GTA and etc.

Its not like they are forced to pay more for a HDD, no, your just paying for a premium 360 basically. I've yet to meet one person on live that had a arcade/core 360, so no, they really won't be playing the same game. These are the same people that pay for online gaming, cheap ass perherpirals, and games and even 360s over again, buying a HDD or even DLC is nothing.

But question, what is with you and this subject LOL cliff?

[cliffbo]

those who bought the arcade are those who KNEW they would not be able to download anything so it doesn't concern them. The arcade 360 is like XE said, aimed towards families and kids. And if they wanna upgrade, they can always upgrade and buy a 20GB HDD for the price of what a premium cost or a 120GB one for a little extra. I highly doubt the ones who bought the arcade are the ones who'd buy something like GTA and etc.

i think you are mistaken here... younger people usually have less disposable income and will opt for the cheaper machine and those same young people will play GTA... in fact as Seph as pointed out, in my experience with GTA it's younger people that play it more. a coming of age thing i think, like the little kid who picks up a dog end and puts it in his mouth and pretends to smoke. lol. not only have you got to consider the 'Arcade' and the 'Core' but you also have to figure in the fact that not everyone has the internet. if the percentages are too low, Rockstar could really regret that deal they made.

Its not like they are forced to pay more for a HDD, no, your just paying for a premium 360 basically. I've yet to meet one person on live that had a arcade/core 360, so no, they really won't be playing the same game. These are the same people that pay for online gaming, cheap ass perherpirals, and games and even 360s over again, buying a HDD or even DLC is nothing.

But question, what is with you and this subject LOL cliff?

i don't know, it just interests me lol...

[OG_Monkey]

What do you mean regret? R* made 50 mil whether the dlc sells or not, its MS who would regret but they won't cuz 50 mil is nothing and people will still download the DLC and maybe even get it on the 360 if they also have a ps3...

And for that younger people thing, less disposable income correct? And they'd opt for the less costly one, like you said right? Does that mean they'd go for a 360 versus a ps3 or even a wii? Which is exactly what microsoft wants, jeep people away from the ps3. So either way both MS and R* are benefitting from this.

And the Internet thing, I doubt MS will let a 50 mil deal go to waste. They'll likely do what they did to halo 2 and will do for halo 3, release the content on a disc for those Internet-less.

Oh and those "younger people" are the GTA players right? So scratch out wii, leaving the 360 as the console to get cuz its cheaper, making MS very happy.

[cliffbo]

What do you mean regret? R* made 50 mil whether the dlc sells or not, its MS who would regret but they won't cuz 50 mil is nothing and people will still download the DLC and maybe even get it on the 360 if they also have a ps3...

there was a clause in the contract that means R* would have to give the money back if things didn't work out well for the DC... that suggests that even MS wasn't entirely confident in that strategy. i don't think many people will get it for both machines, but i do agree that the extra content will help boosts sales of the 360 version, and even boost sales of the HDs. but it's still a fractured market and look what that did for HD-DVD V Blu-ray. bottom line is: if every 360 sold had a HD, Rockstar would make more money.

And for that younger people thing, less disposable income correct? And they'd opt for the less costly one, like you said right? Does that mean they'd go for a 360 versus a ps3 or even a wii? Which is exactly what microsoft wants, jeep people away from the ps3. So either way both MS and R* are benefitting from this.


GTA DC exclusivity will not have such a huge effect for adapters. 1) some won't even know about it. 2) some won't have internet connections and the disk option is not going to be implemented straight away. 3) the persuasive nature of DC will be more than offset by big hitters for the PS3 this year like MGS, Killzone, LBP, HOME and RFOM2...

And the Internet thing, I doubt MS will let a 50 mil deal go to waste. They'll likely do what they did to halo 2 and will do for halo 3, release the content on a disc for those Internet-less.

Oh and those "younger people" are the GTA players right? So scratch out wii, leaving the 360 as the console to get cuz its cheaper, making MS very happy.

i agree, it will be hyped beyond belief... but how is that young guy who just bought an 'Arcade' going to feel?

[OG_Monkey]

well like I said in the past, its their fault for not dropping $100 more and there are really NOT that many arcades/cores sold... wheres Viper...

[cliffbo]

well like I said in the past, its their fault for not dropping $100 more and there are really NOT that many arcades/cores sold... wheres Viper...

i can't remember seeing any numbers of sales for the different SKUs

[OG_Monkey]

...ok

[OG_Monkey]

http://kotaku.com/360123/ea-makes-offer-to-buy-take-2

Oh hell no

At this rate, EA will buy out 95% of gaming companies by 2011. MS, Sony, and Nintendo better get their hands on as many devs as they can. First pandemic and Bioware, now Take 2

Folks, by 2011, say good bye to exclusives as we will all be forced to buy one console, made by EA, and say hello to a one console future

[XboxEvolved]

cliffybo, you couldn't be any further from the truth on younger people (well at least between ages 14-18) having less disposable income. I remember when I was working living with my parents only working 24 or less hours a week I coudl afford to buy a GC and Xbox at launch, PS2 when it was $300, a bunch of games, a Sony stereo system, Sony WEGA TV, and a bunch of other useless shit. Now I work 50+ hours and I have very little disposable income, but I am only making this topic go off subject even more by injecting my two cents on the matter.

Anyways, Microsoft does very well with selling DLC, and so do developers. I don't think MS or R* needs to worry about it not being worth the price they have paid.

[belgarn]

http://kotaku.com/360123/ea-makes-offer-to-buy-take-2

Oh hell no

Oh ffs... :fuckedup:

[dnpmakkah]

If Take 2 seriously considers this bid than Sony better jump in and make an offer too. GTA is worth the money and you get Bioshock, Midnight Club, Mahunt etc...

[yoshaw]

I doubt Take-Two, the parent company of Rockstar, will allow any platform exclusivity for future products. Doesn't make business sense for them, I mean.

At most, lead platform could be made. Yea, that's totally understand/gulp/able.


Edit: *Reads EA offer for Rockstar.*

Oh Please, Fcuk NO!!

[OG_Monkey]

Man i hope they dont consider it, i mean i know they probably are still dead broke or need the money from all that GTA San Andreas problems and hot coffe crap but still

[Sephiroth_VII]

cliffybo, you couldn't be any further from the truth on younger people (well at least between ages 14-18) having less disposable income. I remember when I was working living with my parents only working 24 or less hours a week I coudl afford to buy a GC and Xbox at launch, PS2 when it was $300, a bunch of games, a Sony stereo system, Sony WEGA TV, and a bunch of other useless shit. Now I work 50+ hours and I have very little disposable income, but I am only making this topic go off subject even more by injecting my two cents on the matter.

Anyways, Microsoft does very well with selling DLC, and so do developers. I don't think MS or R* needs to worry about it not being worth the price they have paid.

You've obviously had a great job dude(are you Americans allowed to start working at 14!?), most young people below 18 are not that fortunate.

[belgarn]

They even put up a site about it:

http://www.eatake2.com/

[OG_Monkey]

They even put up a site about it:

http://www.eatake2.com/

OMG LMFAO!!!! ROFL! wow....just wow

[Matt]

Nnnnooooooooooooo!!!

[XboxEvolved]

Damn dude they are serious about this shit. Fuck EA. Fuck EA up their stupid asses.

[OG_Monkey]

If this happens....man, EA is really trying to be the center of gaming. There wont be nothing left soon.

Now i REALLY wont be surprised if EA enters the console/handheld market and Microsoft drops out and goes software only

[XboxEvolved]

Why just Microsoft? EA owns a great deal of Ubi too, they are next. If that happens, all developers, publishers, and manufacturers will have to bow to what EA does.

[OG_Monkey]

No i said microsoft because there were already rumors of them going software only

[XboxEvolved]

There were rumors of Nintendo going software only for the past, I dunno, 10 years? And that is when Nintendo was doing far, far, far, worse than anyone is doing right now.

[KRA]

happy end of the world :)

lol what next >?
big deal with microsoft and we will have EAbox :)

[Sephiroth_VII]

Thank god for Blizzard/Activision. At least they can offer EA some competition.

[cliffbo]

If this happens....man, EA is really trying to be the center of gaming. There wont be nothing left soon.

Now i REALLY wont be surprised if EA enters the console/handheld market and Microsoft drops out and goes software only

now your talking my language. i've been saying for ages that somethings afoot. totally leftfield but here goes: MS exec goes to EA and EA exec goes to MS. (hand shake. deal done). MS makes a deal with Take Two to help them financially because of the hot coffee issues. if Rockstar don't make DC work, they have to repay MS. promote 'Arcade' so reducing the profits that Take two are likely to make, putting them in deeper money problems. offer to buy the company! business my friend, business.

does Rockstar know something? is that where the rumours of exclusivity are coming from? two EA execs have suggested a one console business...

[XboxEvolved]

cliffybo, that was impressive

[belgarn]

now your talking my language. i've been saying for ages that somethings afoot. totally leftfield but here goes: MS exec goes to EA and EA exec goes to MS. (hand shake. deal done). MS makes a deal with Take Two to help them financially because of the hot coffee issues. if Rockstar don't make DC work, they have to repay MS. promote 'Arcade' so reducing the profits that Take two are likely to make, putting them in deeper money problems. offer to buy the company! business my friend, business.

Lol nice conspiracy theory.. If it would turn out this way it would be disaster.

Personally i don't know who I would preferred to be owning T2, not Sony since that would kill the PC versions. Probably Activision/Blizzard or Ubisoft to say at least before EA.

[GTAce]

cliffybo, that was impressive

Well Xboyx, cliffbo was astonishing correct in the past with some of his points and if hes correct with this one, good bye nice gaming times....

[XboxEvolved]

Well his theory would be fine and good, if not for the fact that EA's entire business practices since day one have been geared towards releasing on as many platforms as possible, and makes their games far more profitable than anything an exclusive could ever hope to achieve. Now if they end up buying out UbiSoft, THQ, Midway, and eventually Activision-Blizzard then maybe it will add up to a single console in the future.

I was simply commenting that his ability to tie every single development of this thread into one thing is honestly impressive.

[cliffbo]

Well Xboyx, cliffbo was astonishing correct in the past with some of his points and if hes correct with this one, good bye nice gaming times....

something has been bothering me for months now about MSs strategy. instead of thinking 'that's a stupid move' i chose to think around that... Bill Gates wants a downloadable future, but a hard drive is a must for that. recently the PC has been under attack from Consoles (including the 360). PCs have hard drives! and what is the one thing that MS would want to save if they were intending to pull the plug? LIVE!

[frosty]

when a console is able to drop down to $200 or less is when it starts to sell much faster, and MS had this in mind since day one.

Toshiba also had this in mind with HD-DVD, and look what happened.

[XboxEvolved]

Microsoft has been actively trying to revitalize the PC gaming market, and they admitted 2 years ago they had ignored it since they came out with Xbox. I don't personally care for PC titles, but you hadn't worry about a thing, especially when one single game on PC has more subscribers than all of Xbox Live combined.

That is very true frosty, Nintendo had the same idea in mind with the GameCube, and Sony with the PS2. What is the difference between all of these? Sony had the content and the value with PS2, HD DVD and GameCube never had. 360 has plenty of content and value to ensure a pricedrop would help nicely.

[cliffbo]

Well his theory would be fine and good, if not for the fact that EA's entire business practices since day one have been geared towards releasing on as many platforms as possible, and makes their games far more profitable than anything an exclusive could ever hope to achieve. Now if they end up buying out UbiSoft, THQ, Midway, and eventually Activision-Blizzard then maybe it will add up to a single console in the future.

I was simply commenting that his ability to tie every single development of this thread into one thing is honestly impressive.

developing games for one SKU would reduce the costs tremendously. it doesn't mean that we won't see other companies bringing out their own console, it just means that what is programmed on one will automatically work on the other

[belgarn]

developing games for one SKU would reduce the costs tremendously. it doesn't mean that we won't see other companies bringing out their own console, it just means that what is programmed on one will automatically work on the other

The one-console thing is a nice idea, I just think it got one major flaw. The consoles can come from different manufactures with different offers software/hardware(that don't effect the performance of games) wise as today but with similar hardware inside. The problem is though, who will push the performance of the consoles if they know that the rival console will have the same as them? Then there is no need for expensive high-end hardware for low prices. With no competition performance wise the technical development in consoles would slow down significantly.

They could probably reduce load times and such from a faster CPU, I/O etc. but in the end it would be like for PCs. The developers would have to do different resolutions of textures, resolution and so on if a company want to use a better GPU in their own console for example.

[OG_Monkey]

Nah, we all know what happens when thiers no competition...look at Madden

[XboxEvolved]

But Madden Is The Best Futbol Game In Teh World!

[OG_Monkey]

More like the only....if college doesnt count....and street....which all come from EA.....

[belgarn]

More like the only....if college doesnt count....and street....which all come from EA.....

It will probably get worse since if EA buys Take 2, bye bye 2k sports..

From the EAtake2 site:


Would you kill 2K Sports?
Any integration starts with our respect for the teams and people that make great games. Beyond that, it’s too early to discuss plans for managing Take-Two.


Well it's quite obvious since then they would have two franchises competing with each other about the same customers. Lets just hope they will save some of the development team and get some experience and new ideas into the EA series..

[Matt]

EA Sports? New ideas?

:spit:

[OG_Monkey]

It will probably get worse since if EA buys Take 2, bye bye 2k sports..



Awwwwwww man good point!

EA Sports? New ideas?

:spit:

lol, yet madden still sells millions of copies each year, so weird

EDIT:

Update: Take-Two's board of directors has rejected Electronic Arts' proposal.

"After careful evaluation, the Board has determined that EA's proposal substantially undervalues Take-Two's robust and enviable stable of game franchises, exceptional creative talent and strong consumer loyalty," said the company. "We believe EA's unsolicited offer is highly opportunistic 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."

"Electronic Arts’ proposal provides insufficient value to our shareholders and comes at absolutely the wrong time given the crucial initiatives underway," added executive Take-Two chairman Strauss Zelnick.

In what Zelnick calls the "only prudent and responsible" course of action, the board has decided to consider EA's proposal again on April 30, the day after Grand Theft Auto IV's release.

thank god!

[belgarn]

Yeah, just saw it. :thumbl:

http://ir.take2games.com/ReleaseDetail.cfm?ReleaseID=295739

"Edit" Why wont my signature show up, even though it does on preview. :S

[GTAce]

*phew*

[yoshaw]

Hurray!!!! *Claps like a 3 year old for hours*

[Matt]

What's stopping them attempting a hostile takeover?

[OG_Monkey]

Look at EA now

"Omg...those noobs actually turned us down! This is war! Lets make make a game exactly like GTA but call it....Grand Theft Saints"

[Matt]

Look at EA now

"Omg...those noobs actually turned us down! This is war! Lets make make a game exactly like GTA but call it....Grand Theft Saints"

Grand Theft Saints '09

Get it right OG! ;)

[OG_Monkey]

LMFAO! How could i forget about the year :doh:

[Sephiroth_VII]

:laugh:

Great that EA was turned down, that'll teach the,. If anyone buys Take2, I hope it's Activision Blizzard.

[jaxmkii]

Why just Microsoft? EA owns a great deal of Ubi too, they are next. If that happens, all developers, publishers, and manufacturers will have to bow to what EA does.
and i will spend alot more time with my boat and a lot less time gaming.

[dendj55]

even the 'premium' has limited space (less than 20GB).

13.9 available out of the box (yes I made the mistake of dropping $350 on an inferior piece of hardware, but it was really only to play Halo 3, Bioshock and Mass Effect).

[cliffbo]

In what Zelnick calls the "only prudent and responsible" course of action, the board has decided to consider EA's proposal again on April 30, the day after Grand Theft Auto IV's release.

come on 360 owners, make that deal work!

[Matt]

and i will spend alot more time with my boat and a lot less time gaming.

Mind if I join you? :P

[cliffbo]

Pachter has a reasonable track record... more fuel for R* exclusivity?

Pachter Says EA Purchase Of Take-Two Inevitable, Rockstar Not Necessarily Along For The Ride
5 Comments | Posted by Stephen Totilo on 2/24/08 at 5:24 pm.

take_two_logo.PNGWhen big financial news is breaking in the gaming industry, I look to Wedbush Morgan Securities analyst Michael Pachter to break things down. I caught him on the phone today while he was having brunch at a yacht club (the same yacht club he was last brunching at when the Activision Blizzard deal was announced).

Who is this EA-Take Two deal good for? What would happen with sports and the cost of sports games? And why does he think Rockstar won’t necessarily be a part of the deal?

Pachter broke it down for me…

Multiplayer: Is this a good deal for EA? Good for Take-Two?

Michael Pachter: Probably yes and yes.

The EA side is a little more complicated… Take-Two is a company that hasn’t made money in a couple of years. It doesn’t have a lot of cash and I think it was a stretch to earn the money they earned this year… They [ultimately] earned about a dollar a share this year. EA is offering them 26 times that. It would take a lot of time to turn that around. They make a lot of money when they make ‘Grand Theft Auto‘ and they don’t when they don’t make ‘GTA.’ Their delusion that they will compete in sports — and the reason I say delusion is because EA’s done everything they can to put the squeeze on them — ultimately I think Take-Two would have to get out of that business. ‘GTA’ is a great asset. ‘Civilization‘ is a great asset. The Irrational guys, ‘Midnight Club.’ And the rest of the guys, who knows…

Multiplayer: So what about sports? How would getting that part of Take-Two help EA?

Pachter: EA looks at this business and says, ‘We could make two basketball games, two hockey games, two baseball games… [but] we’re just going to make one of each. … We have a better marketing machine so maybe we can do $300 million instead of $200 million.’ I think that’s rational …

Take-Two does $200 million in sales. EA does a billion-plus. If you combine them together EA sales will go up more than that combined number because they won’t cut price — you won’t see basketball games come down [in price] before Christmas ever again.

Multiplayer: How do you see it playing out? Is it inevitable that EA will buy Take-Two? Or can Take-Two effectively block them?

Pachter: EA started talking to them a long time ago, a year ago, they told me today. EA and Take-Two had a discussion about the acquisition in December. EA made an offer on February 6. [A second offer was made on February 19.] There won’t be another offer because there’s no other video game company that gets the sports position. There’s no media company that will see sports as possible.

Multiplayer: So is there any way for Take-Two to stop EA from getting their way?

Pachter: I don’t really think so, unless Take-Two shareholders think the stock is worth $40. But nobody is going to offer to buy it at $40.

Multiplayer: What role do you see Rockstar playing in this?

Pachter: ‘GTA’ is clearly a wonderful asset, worth a ton. The problem is that to make ‘GTA’ the way it has in the past you need to engage the Rockstar North guys. They’re not going to want the same deal as what they have now.

Multiplayer: So is Rockstar a dealbreaker?

Pachter: It’s not a dealbreaker. EA would love to hire them. But it’s a separate negotiation. I think the ‘Civilization’ — Firaxis guys — will work with [EA].

Multiplayer: Can you explain what it means that EA would be going public like this? Is that a sign of strength or desperation or something else?

Pachter: It’s quite similar with what Microsoft did with Yahoo… You go public when you want the court of public opinion to make a decision. I think EA is saying, ‘$25 was a fair offer. We’ll go to $26 but we’re not going any higher.’ I think the vast majority of Take-Two shareholders will jump at this. I don’t see a white knight. I don’t think Take-Two will be able to do anything to block this.

Multiplayer: Thanks for taking time out of brunch to talk to me today. Enjoy the rest of your Bloody Mary.

Pachter: I’m eating celery now…

Multiplayer: Cool. Well let me know the next time you’re having brunch at that yacht club. I’ll clear my schedule to do some work.

[cliffbo]

damn it worked:

Take-Two Shares Soar in Pre-Market
By Kris Graft Print | Send to a friend | Email the editor
Shares in Take-Two have rocketed up nearly 50 percent in pre-market trading after Electronic Arts said Sunday that it has made a bid to buy the firm.
ImageTake-Two shares jumped $8.55, or 49.25 percent, to $25.90 prior to the opening of the Nasdaq stock exchange on Monday morning, one day after competitor EA said it would offer around $2 billion, or $26 per share, for New York-based Take-Two.

Take-Two shares closed last Friday at $17.36.

Following EA's bid, Take-Two management said the $2 billion offer is "inadequate," and "substantially undervalues Take-Two's robust and enviable stable of game franchises," which includes hits like Grand Theft Auto and BioShock.

EA shares were down $1.43, or 2.87 to $49.74 in pre-market trading on Monday

approach shareholders with an offer knowing that the bid will drive profits, then say you'll make another bid at a later date... sit back and watch those shareholders clench their buttocks as the share price begins to slip back down. two questions to be considered: how many really greedy shareholders are there and how many will get cold feet?

[cliffbo]

mmmmmmm... i still think there may be some truth in the rumour:

Rockstar held up as one of the role models for EA label organisation

As part of the continuing drive to push through the proposed acquisition of Take-Two Interactive, Electronic Arts CEO John Riccitiello has expressed his admiration for the Rockstar senior management team, and held them up as a source of inspiration for Riccitiello's own restructuring of EA since June last year.

Talking in the investor conference call earlier today, when asked what might happen regarding the contracts of the senior management at Rockstar Games if the transaction was successful, he was effusive with his praise.

"First off, it's frankly a little too early to answer that, and in many ways it's not appropriate for us to go into that given that in a transaction like this we're not able to the key employees in the process," he said.

"I would note that we have enormous respect for Rockstar, and the leadership at Rockstar - this is an organisation and leadership team that has survived at least six CEO transitions in the last five years.

"So under any circumstances they've got staying power and they're resilient. I would also point out that our label structure in many ways is inspired by some of the work that has taken place within Rockstar, and Sam Houser's particular beliefs on how these things ought to work - so I think we'd represent a good home for them.

"So while I cannot and will not get into that [original question] today, we see them as the key part of the deal, we have great respect for them, they've certainly gone through things tougher than this and have stuck around and managed to build a great franchise - and we'd hope and expect them to continue to do that."

As the message from Riccitiello and the EA hierarchy is driven home, while he continues to insist that the negotiations remain "friendly", the charm offensive to win across investors and employees alike is well underway.


it's looking more and more like EA are worried that R* may leave if the deal goes through... wouldn't they automatically be at home after the acquisition? somethings afoot i tell you

[jaxmkii]

Mind if I join you? :P

how long would it take to cross the pond at 7knots?

[nayrk]

OK...

1- does the PS3 get any DL content? Or is it all going 360?

2- I want Mutant League Football!

[Matt]

how long would it take to cross the pond at 7knots?

Going by my calculations (which are probably wrong), about four and a half months.

[jaxmkii]

Going by my calculations (which are probably wrong), about four and a half months.

20 days from boston to sharron at a comfortable 5knots (worst case senero where i had to runn on engines the whole time)

[Zer0-Sum]

I wish R* would go independent escaping this unholy union. Then I hope to god that Sony snatches them up. If Sony got R* then Sony would be set.

[cliffbo]

I wish R* would go independent escaping this unholy union. Then I hope to god that Sony snatches them up. If Sony got R* then Sony would be set.

http://www.insidethecbc.com/uploads/crossed_fingers.jpg

[Dakota Grabowski]

Rockstar equals Bullfrog lol... goodbye Rockstar...

[cliffbo]

Rockstar equals Bullfrog lol... goodbye Rockstar...

hello, the Getaway...

[belgarn]

I wish R* would go independent escaping this unholy union. Then I hope to god that Sony snatches them up. If Sony got R* then Sony would be set.

Ah hell no, that would kill the PC versions. >_>

[AC!D]

EA can buy as many franchises as they want but as always sales will start to dwindle after repeated outings and the upcoming developers will always be around to develp a new GTA/Halo/GT/Resi series of games.

[Dakota Grabowski]

hello, the Getaway...

hello, you have no idea what EA is capable of. I can't wait.

[cliffbo]

hello, you have no idea what EA is capable of. I can't wait.

that's right i have NO idea what EA is capable of, that's true... but why?

[Zer0-Sum]

hello, you have no idea what EA is capable of. I can't wait.

EA is very capable at murdering very talented studios.....

[Dakota Grabowski]

EA is very capable at murdering very talented studios.....

behind all irony, 0-sum summed it up.

[Zer0-Sum]

behind all irony, 0-sum summed it up.

It is just the truth. Unfortunately the list is long and very sad. :( But I guess most of us know this. Please for all things good is games do not let EA get R* and Take Two.

[Segitz]

Yeah, EA killed some of my most loved franchises and studios...

Bullfrog (Dungeon Keeper), Origin (Wing Commander), Westwood (Command and Conquer (although 3 finally did it quite right again) and Kyrandia)...

Need for Speed once was also great, and now is just a mere shadow of itself. Same goes for all the sports games (I used to play Fifa and NHL with my brother, but not anymore)

But I have hope, that EA might turn the ship around. CnC3 is great (I really feel the world of CnC again) and Wrath of Kane (? Dunno the english name^^) will surely rock too. Army of Two also is something special coming from EA (they usually don't shooters, do they?), as well as Skate and the like

Maybe Ricitello (sp?) will be able to move EA to where it was, when the Mega Drive and Amiga were still king (EA had some of the best games back then).

[Sephiroth_VII]

Yeah, EA killed some of my most loved franchises and studios...

Bullfrog (Dungeon Keeper), Origin (Wing Commander), Westwood (Command and Conquer (although 3 finally did it quite right again) and Kyrandia)...

Need for Speed once was also great, and now is just a mere shadow of itself. Same goes for all the sports games (I used to play Fifa and NHL with my brother, but not anymore)

But I have hope, that EA might turn the ship around. CnC3 is great (I really feel the world of CnC again) and Wrath of Kane(correct) (? Dunno the english name^^) will surely rock too. Army of Two also is something special coming from EA (they usually don't shooters, do they?), as well as Skate and the like

Maybe Ricitello (sp?) will be able to move EA to where it was, when the Mega Drive and Amiga were still king (EA had some of the best games back then).
CnC3 is nothing compared to TS and RA(sorry). It's pretty good, but who knows where it'd be today if Westwood still existed?

If EA "turns the ship around" and changes their business philosophy, we will know that hell has frozen over and Ragnarok is coming...

[Segitz]

CnC3 is nothing compared to TS and RA(sorry). It's pretty good, but who knows where it'd be today if Westwood still existed?

If EA "turns the ship around" and changes their business philosophy, we will know that hell has frozen over and Ragnarok is coming...

Well, compared to Generals, Tiberium Wars is a MAJOR improvement^^ I still prefer CnC1 and 2 to 3, but I thought, RTS games died after RA2 and Total Annihilation. Yet, aroudn the corner came Company of Heroes, SupComm and CnC3 (the LotR games are quite nice too, yet nothing compared to the other games mentioned). I am an RTS nut above ALL else (that is also why I play less consoles and more PC games... It just is THE pc genre...)

I dunno, what would have happened if WW was still running CnC development... Maybe they'd already have made an CnC MMO (that would ROCK so much^^ Imagine fighting side by side with 10 different commanders against the GDI for global domination)

If I were EA, I would continue to deliver the crappy sports games every year and put all the profits coming from there into new innovative games to expand my market. Once you go down the slippery road of "sequelities", there's only a hard road back to the top.

Sony does this very differently and thus have problems and benefits on their own. Sequels usually sell ok and need less ads to be sold, yet the consumers get tired of "always the same".

[ddaryl]

EA is a public traded company, which dictates that they must sell games to the masses at the highest profits...

EA will not be changing any philosophies.

[cliffbo]

linkd everywhere... still waiting for a few more pieces of this fascinating puzzle.

Microsoft and Electronic Arts hire Morgan Stanley to do their bidding
7
Morgan Stanley is the banker representing Electronic Arts in its unsolicited buyout bid for rival game publisher Take-Two, the investment bank confirmed Monday.

While that news alone is no big deal, consider this: Morgan Stanley is also representing Microsoft in its unsolicited buyout offer for Yahoo, which was announced a mere 25 days ago.

That's two mega-billion buyout bids the premier investment banking firm has signed aboard to handle in the past month. And both have the potential to get mean and nasty, should the target companies kick and scream all the way to the alter.

So, this raises the question regarding Morgan Stanley, lofty fees aside:

"Is Morgan a glutton for punishment, or in need of anger management training?"


http://www.n4g.com/gaming/News-115491.aspx

[Viper]

Slow news day. If they'd take the time to look, they'd learn that most major corporations use one financial institution to handle all major financial circumstances.


Or did they write that up just to make a joke at the end?

[jaxmkii]

Ah hell no, that would kill the PC versions. >_>

sony would probley make it a SOE game too.

[cliffbo]

Every Studio EA's Bought and Closed
Monday 25-Feb-2008 1:23 PM Feature: Everything from Maxis to BioWare
34 Comments
Undoubtedly you've already heard about EA's unprecedented buyout bid towards Take-Two (and if you haven't, click on this 'ere link), but it's far from the first time the gaming behemoth has thrown its weight in cash about.

From Maxis to BioWare Pandemic, Electronic Arts has spent billions acquiring studios over the last twenty years and, worryingly for Mass Effect fans, it's closed quite a few of them as well.

But it's thankfully looking up where the publisher's studio-swallowing habits are concerned, with CEO John Riccitiello recently admitting that the company "blew it" when it decided to absorb (and later close) stellar PC developers Bullfrog and Westwood.

Advertisement:
Fortunately, the boss promises the same fate won't become of recently acquired BioWare and Pandemic, who he says EA is doing its best to preserve the company culture. "It seems to be working," Riccitiello added. "I think we are on a good track."

For your reference (and bedazzlement) here's the full list of EA's past acquisitions, care of our mate Wikipedia:

Studios Opened or Acquired

* 1998: EA Tiburon in Maitland, Florida
* 1999: EA Canada in Burnaby, British Columbia
* 2000: EA Los Angeles in Los Angeles, California
* 2002: EA Black Box in Vancouver, British Columbia
* 2004: Criterion Software in Guildford, United Kingdom
* 2004: Digital Illusions CE in Stockholm, Sweden
* 2004: EA China in Shanghai, China
* 2004: EA Montreal in Montreal, Quebec
* 2005: EA Mobile
* 2005: EA Redwood Shores in Redwood City, California
* 2005: EA Singapore
* 2006: EA Mobile India, Hyderabad, India
* 2006: EA Mythic in Fairfax, Virginia
* 2006: EA Phenomic in Ingelheim, Germany
* 2006: EA Salt Lake in Bountiful, Utah (Formerly Headgate Studios)
* 2007: EA Casual Entertainment
* 2007: EIS (European Integration Studio) in Madrid, Spain
* 2007: BioWare Corp. in Edmonton, Alberta, Canada and Austin, Texas
* 2007: Pandemic Studios in Los Angeles, California and Brisbane, Queensland, Australia
* 2007: EA UK, relocated to Guildford from Chertsey
* 2008: EA Korea in Seoul, South Korea
* 2008: EA Studio in Bucharest, Romania


Studios Closed

* 1998: Original HQ in San Mateo, California - moved to Redwood City
* 2000: EA Baltimore in Baltimore, Maryland - established in 1996 as part of Origin
* 2001: Kesmai (known also as GameStorm); acquired in 1999
* 2001: Bullfrog Productions in Surrey, England - acquired in 1995
* 2002: EA Seattle in Seattle, Washington - formerly Manley & Associates, acquired in 1996
* 2003: Westwood Studios in Las Vegas, Nevada - acquired in 1998
* 2003: EA Pacific (known for a time as Westwood Pacific) in Irvine, California - formerly part of Virgin Interactive, acquired with Westwood in 1998
* 2004: Origin Systems in Austin, Texas - acquired in 1992
* 2004: Maxis in Walnut Creek, California - acquired in 1997, moved to Redwood City
* 2006: DICE Canada in London, Ontario (created Battlefield 2: Special Forces expansion, Battlefield Vietnam, and all BF2 patches). Acquired DICE fully October 2, 2006; closed DICE Canada studio hours later.
* 2007: EA Japan in Tokyo, Japan - closed due to consolidation; moved under EA Partners model
* 2007: EA UK in Chertsey, United Kingdom, relocated to Guildford
* 2007: EA Chicago in Chicago, Illinois. Closed due to failure to meet profit targets.

http://www.computerandvideogames.com/article.php?id=183194

EA could make GTA games without Rockstar - analyst
Illustration
Matt Martin 15:12 (BST) 26/02/2008

Investors concerned Houser's may quit if acquisition goes ahead

Should EA's proposed acquisition of Take-Two go ahead, Electronic Arts could make more Grand Theft Auto titles without the original Rockstar North developers, according to Wedbush Morgan's Michael Pachter.

If the original GTA team decided to quit the company, EA could still make approximately USD 150 million from the game, using the acquired technology and intellectual property.

"The game could likely be released every two years, but its success and profitability will depend upon whether the creative talent responsible for the first four versions is retained, and upon the price commanded by this talent for their contribution," commented Pachter.

"We think that ownership of the intellectual property and game engines would allow EA to make the game itself and generate around $150 million every other year without contribution from Rockstar North."

However, Pachter acknowledged that with Rockstar North on-board to develop further sequels for the industry-leading franchise, the revenue from such games would be much higher.

"With the current creative team in place, it is more likely that the game will generate closer to USD 600 million every other year," he said.

Wedbush points to a decline in EA's stock today as evidence that investors are concerned Rockstar North would not accept the acquisition, and the valued team – founded by Sam and Dan Houser – could possibly quit the company.

"We note that the decline in EA’s stock today suggests that investors are concerned about whether the Rockstar North team will remain after a change in control, and we believe that similar concerns will be raised among prospective purchasers contemplating a fight with EA."

Wedbush Morgan believes that if Take-Two shareholders don't accept the USD 26 per share offer currently on the table, Electronic Arts is likely to withdraw its offer and walk away from the deal. Nor does it expect a third party to step make a bid for Take-Two.

As Rockstar's contract with Take-Two ends in February 2009, Pachter suggests that should the EA/Take-Two deal fall through, there would likely be a bidding war for the services of Rockstar next year, to develop a rival to the Grand Theft Auto franchise.

Pachter pointed to Activision picking up Medal of Honor developers Infinity Ward and Spark Unlimited and putting them to work on the Call of Duty franchise, as an example of successful poaching of talent.

http://www.gametab.com/news/2509768/

[yoshaw]

If EA takes over Take2. Then.....

Grand Theft Auto 11 by 2010, I bet your socks it'll happen! EA and franchise dilution go hand in hand.

[Zer0-Sum]

If EA takes over Take2. Then.....

Grand Theft Auto 11 by 2010, I bet your socks it'll happen! EA and franchise dilution go hand in hand.

No joke man. They would make a GTA every year or two just like Madden, and it would never progress in gameplay, just like Madden. What a frickin nightmare....

[cliffbo]

No joke man. They would make a GTA every year or two just like Madden, and it would never progress in gameplay, just like Madden. What a frickin nightmare....

it's only a nightmare if R* don't leave or drop that Western game we all saw waaaaaaay back... i think the speculation was that it will be Red Dead Revolver 2, but for all we know it might be THE PS3 game we all want

[Zer0-Sum]

it's only a nightmare if R* don't leave or drop that Western game we all saw waaaaaaay back... i think the speculation was that it will be Red Dead Revolver 2, but for all we know it might be THE PS3 game we all want

I am talking abut EA take over.

But I have no idea what R* has in store for the PS3. I wish it was going to be an all new IP that is fresh and interesting. Something different fro their usual fare. E3 2008 we will get a 30 second vague trailer of this new game.

[belgarn]

sony would probley make it a SOE game too.

I would be very surprised if they did, since that's not their type of game. And GTA is a big console seller so they probably would want it to stay PS3 exclusive.

[jaxmkii]

I would be very surprised if they did, since that's not their type of game. And GTA is a big console seller so they probably would want it to stay PS3 exclusive.

mabey a timed exclusive like halo?

[Lucid Delusion]

Wait..I thought Rockstar actually owned the rights to GTA? Can't they branch off from Take-Two and basically find another publisher?

[cliffbo]

Wait..I thought Rockstar actually owned the rights to GTA? Can't they branch off from Take-Two and basically find another publisher?

i think Take-Two own the rights! hope i'm wrong here, because if and when R* leave Take-Two, if Sony are really smart, they'll snap them up and add them to their WWS

[Lucid Delusion]

I hope they do. Honestly if I was in a position of power in that company knowing we own the rights, I'd be shopping that company around to prospective publishers just to stay out of EA's grasp.

[belgarn]

mabey a timed exclusive like halo?

Possible, but from experience first party PS3/PS2 titles from Sony rarely if ever reach the PC market. But if public demand is big enough, who know what might happen.

[XboxEvolved]

Rockstar is a subsidiary of Take-Two.

[cliffbo]

Rockstar is a subsidiary of Take-Two.

we know that... that's why we are discussing the possible split :shrug:

[Zer0-Sum]

If anything I hope Ubisoft swoops in ninja style and buy out Take Two. I would trust them ten times more with Take-Two and R* that the Borg that are EA. Please Ubisoft, come to the rescue!!! Make an offer to save them from EA assimilation!

we know that... that's why we are discussing the possible split :shrug:

Bungie did get away from Microsoft. Maybe R* could do the same thing....

[cliffbo]

If anything I hope Ubisoft swoops in ninja style and buy out Take Two. I would trust them ten times more with Take-Two and R* that the Borg that are EA. Please Ubisoft, come to the rescue!!! Make an offer to save them from EA assimilation!

yes and while you are at it Ubisoft give me Beyond Good and Evil 2

[Zer0-Sum]

yes and while you are at it Ubisoft give me Beyond Good and Evil 2

Good luck on that. You and me and a whole bunch other people want that too.

[Lucid Delusion]

I don't think Ubisoft would have any interest in buying out Take-Two outside of acquiring Rockstar. Unless I'm mistaken and Ubisoft wanted to branch out into the sports genre and back the sports divsion of Take-Two. Still there are some talented devs at Take-Two that I'm sure any publisher would be interested in.

[cliffbo]

Good luck on that. You and me and a whole bunch other people want that too.

they need to change the medikits in it though, by the time i got to the end fight (think it was anyway) i couldn't beat it because i had one left with no way of getting more... never finished that brilliant game, what a pity, it was one of the best games to come to PS2 and put Ubisoft on the map for me

[Zer0-Sum]

I don't think Ubisoft would have any interest in buying out Take-Two outside of acquiring Rockstar. Unless I'm mistaken and Ubisoft wanted to branch out into the sports genre and back the sports divsion of Take-Two. Still there are some talented devs at Take-Two that I'm sure any publisher would be interested in.

For example of what take two brings to the table, Bioshock by 2K Games is mighty juicy. I would want that in my portfolio.

http://en.wikipedia.org/wiki/2K_Games

There are many others too. Take two has been having management problems for years and have been bleeding cash. They need to get purchased to get them back up on the right track. But EA is NOT the answer.

[cliffbo]

For example of what take two brings to the table, Bioshock by 2K Games is mighty juicy. I would want that in my portfolio.

http://en.wikipedia.org/wiki/2K_Games

There are many others too. Take two has been having management problems for years and have been bleeding cash. They need to get purchased to get them back up on the right track. But EA is NOT the answer.

they had Table tennis!

[Zer0-Sum]

they had Table tennis!

They still do. It is by R* and uses the same engine that GTA4 is on now.

[cliffbo]

They still do. It is by R* and uses the same engine that GTA4 is on now.

it would have been football but they never had enough space :look:

[Lucid Delusion]

I completely forgot about Table Tennis! I loved that game. And I agree, Bioshock's developers would be a big pick up for any publisher. It's amazing how quickly I forgot that game came out of the 2KGames studio. I think Take-Two would look at lot more appetizing to companies if it weren't for the fact that the company is hemorrhaging money.

[cliffbo]

edit: i already posted this :doh:

[Lucid Delusion]

So he suspects that EA will try to court Rockstar employees to come work for them and make their own GTA style game. I dunno..I gotta commend EA in some way..they basically want to branch out realizing that their stock of regurgitated franchises aren't pulling in the same cash they used to. But they're still going about this the wrong way by trying to strong arm Take-Two into joining them basically so they can snatch up GTA and their sports division.

[Zer0-Sum]

I completely forgot about Table Tennis! I loved that game. And I agree, Bioshock's developers would be a big pick up for any publisher. It's amazing how quickly I forgot that game came out of the 2KGames studio. I think Take-Two would look at lot more appetizing to companies if it weren't for the fact that the company is hemorrhaging money.

it is just Take two that is bleeding cash. All their subsidiaries are doing really well. if I were Ubi or Sony I would buy that shit SO fast. Imagine if Bioshock was Sony owned. How 360 people would howl! :lol:

[cliffbo]

Take-Two: EA not sole suitor
Grand Theft Auto IV publisher says at least one other company is interested in exploring a merger or acquisition.
By Brendan Sinclair, GameSpot
Posted Feb 29, 2008 7:21 pm GMT

Though some analysts view Electronic Arts' attempted acquisition of Take-Two Interactive as a foregone conclusion, the Madden NFL publisher may have some competition in its bid for the house that Grand Theft Auto built. In a filing with the Securities and Exchange Commission yesterday, Take-Two revealed that since EA went public with its buyout offer on Sunday, other companies have come calling.

"From time to time the company receives, and since the issuance of the press release by EA the company has received, informal indications of interest in a business combination," the filing read. "However, the company has not received any written 'offers' and has not engaged in any substantive discussions with any party (including EA) with respect to a business combination since [February 14, 2008]."

Take-Two didn't name the other parties who might be interested in the company, but a few big names made their feelings on the publisher known earlier this week. Earlier this week, Ubisoft said it wasn't interested in big acquisitions, suggesting its expansion plans called for more licensed activity instead. Meanwhile, Activision Blizzard head Robert Kotick said his own company had looked at Take-Two Interactive as an acquisition target, but in the end decided it wouldn't be a desirable business combination.

http://www.gametab.com/news/2515688/

[yoshaw]

Whoa, what if it's SONY!? lol now that would be mind-blowing given how EA might react afterwards to PS3.

[LiquidEagle]

If anything, it would be Microsoft IMO

[Sephiroth_VII]

They would both prosper from buying Take2, but I suppose MS has more to gain since Sony already bas a "GTA" franchise.

[Leedogg]

If anything, it would be Microsoft IMO

if that would happen I would :barf:

[Sephiroth_VII]

Rather MS than EA, honestly...

[jaxmkii]

both featuring a shyt

[dnpmakkah]

Sony should just work out some sort of deal with them where they help them finanically without actually buying them out in exchange for right of 1st refusal. Win for Sony because they get exclusive games such as GTA/Midnight Club/Manhunt/Bioshock and win for Take Two because they still keep the company as their own. Something along the lines of Ninja Theory...that's even if something like this is possible.

[LiquidEagle]

Overall I think Sony has the best record (or one of the best) when it comes to keeping a studio true to its spirit after a purchase, and they also have a great relationship with Insomniac (whom they don't own at all), so I think they'd be the best suited for something like that (MS, EA, and Ubi can all go straight to hell), but I'd like Take2/Rockstar to stay like they are if possible... I don't think Sony needs to buy this studio but if it becomes an inevitability that somebody has to buy Take2, I'd definitely want it to be Sony :-p

[cliffbo]

i wonder how Rockstar will take this? first one, then how many others. come on Rocks, come to infragram :)

Shareholder Sues Take-Two
By Kris Graft Print | Send to a friend | Email the editor
A shareholder in acquisition target Take-Two has sued the publisher following management's move to give itself a massive pay increase, allegedly at the expense of shareholders.
ImageTake-Two shareholder Patrick Solomon is suing the New York-based Grand Theft Auto publisher in Delaware Chancery Court over management's decision to secretly reject Electronic Arts' initial buyout offering, instead choosing to take the opportunity to give itself a pay raise.

The lawsuit said that Take-Two management, led by ZelnickMedia execs, inappropriately kept Electronic Arts' initial buyout offer secret, and moved to amend a management agreement that would triple the salary of Take-Two execs and add additional management benefits, including as much as 780,000 shares of restricted stock.

Currently, EA's buyout offer stands at $26 per share, or about $2 billion for Take-Two.

The management agreement, revised on February 15, also included amendments that upped ZelnickMedia's pay to $16.5 million from $3.8 million in the event of an acquisition. The suit called the pay increase "exorbitant."

Take-Two had yet to reply to Next-Gen's request for comment as of press time.

The potential share grant would be worth between $20 million to $39 million, according to an L.A. Times report, and is subject to a shareholder vote at next month's annual meeting.

http://www.next-gen.biz/index.php?option=com_content&task=view&id=9494&Itemid=2

[AC!D]

Seems like their is a hostile takeover in play. Dont you guys just love EA!

[yoshaw]

EA espionage tactics in disguise??

[cliffbo]

Patcher is sometimes wrong, but in this case i think he's right. now is the time for R* to make their move! i'm going to be watching the net very closely in the coming month

Pachter on Take-Two buyout: “A sale is inevitable”

March 13th, 2008 @ 17:04

Wedbush Morgan’s Michael Pachter is in no doubt that EA will now acquire Take-Two, telling videogaming247, “A sale is inevitable.”

EA made a $26 per share tender bid for Take-Two this morning, a move which has just promoted Take-Two’s management to warn its shareholders off accepting the offer for at least ten working days.

Pachter explained that, in his opinion, the desired delay was to allow time for more offers to emerge.

“I think Take-Two hopes that a competing offer may surface,” he added. “This hope is somewhat naïve, given that the whole world has been aware of EA’s overture for the last 18 days, and no interested parties have surfaced. In my view, EA is in a unique position to pay all cash and consolidate Take-Two’s operations into its own while eliminating most of the overhead. Other video game companies could do the same on the operations side, but none have the cash. No media company could gain the operating synergies. So there will not be any other purchasers.”

Smell that? It’s blood.

http://www.videogaming247.com/2008/03/13/pachter-on-take-two-buyout-a-sale-is-inevitable/

[LiquidEagle]

Wow, Sony should step in here & buy it just so EA doesn't get the satisfaction of fucking up another fantastic set of studios & brands

[cliffbo]

Wow, Sony should step in here & buy it just so EA doesn't get the satisfaction of fucking up another fantastic set of studios & brands

i'm counting on infragram. my reasoning is that R* may not want to be a 1st party dev but rather a 2nd party dev, and so giving them room for manoeuvre if Sony go pear shaped... i still think that the Phill move is a chess move

[Zer0-Sum]

This is a great summary of the entire EA/take-Two situation.

EA to Take Two: Prepare for Grand Theft Boardroom

By Ben Kuchera | Published: March 13, 2008 - 12:14PM CT

EA's efforts to purchase Take Two are moving into hostile territory as the gaming giant is taking its case directly to shareholders, bypassing the board of directors with a buyout price of $26 per share. This deal is similar to the February 24 offer that was made public after Strauss Zelnick, Take Two's chairman of the board, rejected it. Both deals give the Grand Theft Auto developer a valuation of around $2 billion, but this time Zelnick's hands are tied: if the shareholders wish to sell directly to EA, there that can be done to stop them.

Take Two has responded to the offer. "The Board of Directors of Take Two Interactive Software, Inc. today recommended that Take Two stockholders take no action at this time in response to the announcement by Electronic Arts Inc. that it has made an unsolicited conditional tender offer to acquire all of Take Two's outstanding shares of common stock for $26 per share in cash." The company says it will review and evaluate EA's new offer and will subsequently issue a new recommendation along with a justification.

The shareholders may be more willing than Zelnick to agree to EA's offer, and in fact one shareholder has already begun litigation against Take Two, alleging that since the company didn't negotiate with EA, it has failed to "maximize shareholder value." Could Take Two have convinced EA to sweeten the deal? It's very possible, in the letters EA was very clear about the value it placed on finishing the deal quickly, and the stock buyout was a cash deal. "If EA really is desperate to land this deal, it could easily afford to raise the bid," Ars noted previously. "These guys have $3.4 billion in cash equivalents and no debt to speak of."

Zelnick is going to get paid either way. Last month, the board approved a change in ZelnickMedia's (an investment firm with a significant stake in EA) payment schedule. If the company is sold, its management fees and bonuses will total $16.5 million insted of $3.8 million. In other words, once EA began making moves to acquire the company, the board of directors increased the payout to ZelnickMedia over 400 percent, should EA succeed. The shareholder lawsuit calls this increase, made just nine days after Riccitiello's first letter to Zelnick, "exorbitant."

There is also a severance plan for other employees that has been put in place; they stand to get up to 1.5 times their salary for up to 18 months if Take Two is purchased by another company.

Take Two still isn't a profitable company; for its most recent quarter, it posted losses of $38 million, compared to a loss of over $21 million a year previous. Preorder activity for the upcoming GTA IV have allowed Take Two to give optimistic guidance for the current quarter. It now expects earnings of $1.00 to $1.10 per share on revenues of between $450 million and $500 million.

One factor working in favor of EA's bid is Take Two shareholders' history of taking things into their own hands when they don't agree with management. The current board of directors is in place because the shareholders revolted against the company's previous executive team last March in the wake of the company's $185.9 million losses in 2006 and a stock options backdating scandal.

The pressure for Take Two to accept the offer is growing, and with stock trading below EA's $26-a-share offer we could see a major shakeup in the industry if Take Two ends up falling into the hands of the gaming giant. If that happens, EA will basically have the world of sports gaming cornered, as well as control of the influential Rockstar Games. That may not be the best thing for gamers, but one person will have come out far ahead in the deal: Strauss Zelnick.

"Take Two's management has rejected EA's offer for $26 per share, claiming that it is not enough. Then it stuffed its own pockets with options and instituted a generous severance plan for employees if the company is taken out," Todd Mitchell of Kaufman Brothers wrote to his clients. If EA remains determined, there is little incentive for Take Two to remain independent.

http://arstechnica.com/news.ars/post/20080313-ea-to-take-two-prepare-for-grand-theft-boardroom.html

[cliffbo]

something is definitely afoot at Take Two. i don't think EA want them for R* at all, but rather to cut out the sports competition... this article sounds like an indirect plea to R* to stay on if the buy out happens (or should i say when?). it's one of the worse chess moves i've ever seen lol. who's going to fall for this?


Last Updated: Thursday, 13 March 2008, 16:21 GMT
E-mail this to a friend Printable version
Rockstar is EA 'primary interest'
By Darren Waters
Technology editor, BBC News website

GTA IV
Grand Theft Auto IV is released at the end of April

Rockstar and its franchise Grand Theft Auto is the "primary interest" of EA's attempted purchase of Take Two games, said chief executive John Riccitiello.

Mr Riccitiello said: "I believe the company is fully justified in calling themselves Rockstar because that's what they are in this industry."

Take Two turned down EA's first approach and so the games giant is now targeting shareholders directly.

Take Two boss Strauss Zelnick said the EA offer undervalued the firm.

Mr Zelnick has said EA should wait until after the release of Grand Theft Auto IV on 29 April. Analysts predict it will be the biggest release of the year, with sales upwards of 10 million copies.

Mr Riccitiello told BBC News: "If we don't conclude this transaction, if we walk because of whatever level of inability to get this done, the scary thing is what the stock trades at after we leave, not after 29 April."

He said Take Two had four of the best studios in the industry: Rockstar, makers of Grand Theft Auto; Irrational, makers of Bioshock; Firaxis, home to Sid Meir and Civilization and Visual Concepts, makers of sport titles.

"What we are attracted to is what we value in our own studios: great developers and great intellectual property."

Scene from Grand Theft Auto IV
Pre-orders of Grand Theft Auto IV have been better-than-expected

Mr Riccitiello said he had great respect for the producers behind Grand Theft Auto, Sam and Dan Houser and Leslie Benzies.

"The big headline here is that our primary interest is in Rockstar and the intellectual properties around Rockstar."

He said the bid was not an attempt to remove a competitor in the field of sport titles.

"Sports games are secondary consideration here," he said.

He said he had no fear that the value EA placed on Take Two could be damaged if the trio of Rockstar creators decided not to pursue further Grand Theft Auto titles after the latest release.

He said: "There is no doubt that EA is several times larger than Take Two - everyday somebody walks in and somebody walks out.


What we have got right now is a corporate issue that has nothing to do with the people who build these games
John Riccitello, EA

"If the wrong guy walks out, we have an issue to deal with. But we don't stop making games."

He added: "In case of Rockstar I would point out that the leaders are young, vibrant, they're talented and committed.

"And what we have got right now is a corporate issue that has nothing to do with the people who build these games."

He said concerns that EA's buyout would stifle innovation were unfounded and pointed to franchises and games that had improved after the firm had bought the original development talent.

"We worked collectively with Will Wright to create The Sims. When we bought Maxis, Sim City was selling 7 to 800,000 copies.

"The Sims is a level of performance to Sim City that the Empire State Building is to a very nice house."

He said games like Battlefield, Burnout, Need for Speed and Madden were franchises which were stronger following EA's purchase of the original development firms.

http://news.bbc.co.uk/1/hi/technology/7294812.stm

[Jay Gee]

EA Games
*little girl whispers*
Buyout everybody.

[section]

At this rate in 15 years they own the whole games industry, the only game "makers"/publishers are EA and small developers such as IQ games which release stuff on PSN and such.

Ubisoft might live though.

[cliffbo]

there are two tribes: Sony and EA... as EA pull in more devs so will Sony... they will begin by bringing every Sony division closer together (done!) and they will begin to influence bigger teams to follow Sony's Philiosophy ;)

[jaxmkii]

OK wounding you once asked "why is there so much hate of EA."

now you have our collective answer...

[JasonXe]

well they did agree for no dlc on gta4 for 2 new exclusive ips i think. But that might change if EA buys take two out.

[jaxmkii]

i belive its a done deal that would have to be honored even in the event of a buyout.

[JasonXe]

i belive its a done deal that would have to be honored even in the event of a buyout.

agreed but kinda leaves a tiny speck of doubt being EA is involved

[Sephiroth_VII]

They'll have to reimburse them for breaking the contract then.