Electronic Arts (ERTS) has received a second FTC request for information about its plans to acquire Take-Two Interactive (TTWO). You can read up on the details in this SEC filing and accompanying press release, but there’s really no need. That’s because there are really only two important dates left in the EA/Take-Two (TTWO) saga:
- Today, when Take-Two shareholders get to vote on a poison pill proposal at their annual shareholders meetings; and…
- Whenever the first sales reports from Grand Theft Auto IV filter back to Wall Street, likely in the first day or two of May.
If the shareholders swallow the poison pill, they’ll obviously be signalling that they’re less likely to take EA’s $26 a share offer — but that doesn’t mean they wouldn’t look at another deal.
But it’s the GTAIV performance that really matters. Take-Two management has repeatedly argued that their company is worth much more than Wall Street or EA realise, and that everyone will come to their senses once the game goes on sale April 29th. As we’ve said before, we don’t think much of this theory: GTAIV has been a blockbuster-in-waiting since GTAIII came out, and it’s going to be very, very hard for the game to beat expectations.
* We had originally incorrectly reported that EA had extended the deadline for its tender offer, which is set to expire at the end of Friday. We apologise and vow to drink more coffee before attempting to read SEC docs.
See Also: Why GTA IV Won’t Help Take-Two Escape EA
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