Tell us if this sounds familiar: Electronic Arts extended the deadline for its offer to buy Take-Two, and Take-Two rejected EA’s tender offer. Nothing new there — we’ve been typing those words over and over again since this winter.
The one new wrinkle: Take-Two, which has repeatedly said EA’s offer undervalues it, now says it is having “meaningful discussions with multiple parties, a number of whom have been conducting due diligence.”
This is slightly different than last month, when the company said it was having “formal discussions” with potential acquirers/partners. But that language didn’t convince investors that anyone other than EA is seriously interested in the company — they’ve pushed TTWO shares below EA’s $25.74 offer price.
And for what it’s worth EA’s deadline extenion is a formality: The company had already said earlier this month that it’s going to wait until August 21, when the FTC said it would be done with its investigation, to make its next move. Again, our hunch is that the FTC clears the deal, at which point EA walks away, and TTWO plummets.
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