Take-Two shareholders reinstated the 8-member board at the company’s annual shareholder meeting. In doing that, investors signaled their approval of the board’s rejection of the $2 billion tender offer from Electronic Arts (ERTS).
Shareholders also approved the new executive incentive package that gives 1.5 million shares to ZelnickMedia, which controls the board. Under the conditions of EA’s offer, the value of bid drops from $26 to $25.74 to account for the new shares.
At the meeting, TTWO’s chairman, Strauss Zelnick reiterated his opposition to EA’s buyout offer, once again saying that the company wants to wait until Grand Theft Auto IV comes out on April 29 before discussing any buyout offers.
So what’s next? EA can continue with the tender offer, raise its bid, or walk away. We’ve said before that it would be smart for EA to just walk away and watch TTWO’s stock price plummet in the absence of other potential buyers.
UPDATE: EA’s response: Why don’t you think about our offer some more? We’ll extend our deadline until mid-May.
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