EA Attempting Take 2 Acquisition

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Postby Quietman » Mon Feb 25, 2008 1:47 pm

Blizz is merging with Activision (or has merged), not with EA.
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Postby Edam » Mon Feb 25, 2008 1:53 pm

Heh, vinvidi.

I don't like the fact they rejected it on financial groiunds, with no mention of how it might infringe upon creativity.

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Postby Plant » Mon Feb 25, 2008 2:01 pm

I feel bad now ¬_¬
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Postby JohnyHumf » Mon Feb 25, 2008 4:11 pm

Edam wrote:Heh, vinvidi.

I don't like the fact they rejected it on financial groiunds, with no mention of how it might infringe upon creativity.


That's what I was most worried about, I just sensed toned down rockstar games and annual updates to Table Tennis. :(

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Postby DjchunKfunK » Mon Feb 25, 2008 8:02 pm

I think it's pretty cheeky of EA to be honest. They want to buy before GTA 4 comes out under the apparent reasoning that it would be less disruptive for the company. Or they just want the big fat payout from GTA 4.

Personally I don't think this is a good thing. Massive companies will inevitably stifle originality. Added to that Take Two are the only company who are releasing Baseball, Basketball and Football games to rival EAs and forcing EA to make changes. If they takeover Take Two 2K Sports will be the first developer to be cut and competition in the sports arena will totally dry up.
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Postby Crowley » Mon Feb 25, 2008 8:10 pm

Pro Evo?

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Postby Edwin » Mon Feb 25, 2008 9:38 pm

DjchunKfunK wrote:I think it's pretty cheeky of EA to be honest. They want to buy before GTA 4 comes out under the apparent reasoning that it would be less disruptive for the company. Or they just want the big fat payout from GTA 4.

Personally I don't think this is a good thing. Massive companies will inevitably stifle originality.
There has been seven (and a half) GTA games. How is EA going to make it less origional?
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Postby DjchunKfunK » Mon Feb 25, 2008 9:51 pm

I'm not talking about GTA. Take Two own more than just Rockstar. Plus I am in generalities across the industry with regards to big companies squashing originality.
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Postby Edwin » Mon Feb 25, 2008 10:03 pm

Nobody buys games based on origionality. It isn't being squashed by evil corporations, why would they if someone comes up with a new idea that sells they copy it, they don't buy out the company and lock all it's IP in a safe under the sea. Ultimately its the market that decides what games are made, companies both big international and small independents just follow it most of the time.
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Postby Jay » Tue Feb 26, 2008 8:04 am

JohnyHumf wrote:
Edam wrote:Heh, vinvidi.

I don't like the fact they rejected it on financial groiunds, with no mention of how it might infringe upon creativity.


That's what I was most worried about, I just sensed toned down rockstar games and annual updates to Table Tennis. :(


For God's sake.

Look, markets are governed by consumers, who will vote (or buy as it were) with their feet. Just like there will always be a market for original, unique and fun games, there will also be a market for mass-market, pants-on-head retards who want film tie-ins, sports series and Sims expansion packs. Being worried about a stifling of creativity is a hollow idea at best because it assumes that the entire market is full of, well, pants-on-head retards.

As for the offered price - it DOES significantly detract value from T2. In terms of market price, yes, the offering price does have a large premium, BUT, if you take into account the strength of T2's brands, T2 are justified in asking for a higher amount
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Postby Quietman » Tue Feb 26, 2008 5:01 pm

Plus EA are trying to change their image and their in-house developments are trying new things, even if it is just adding stuff to an already existing formula (see: MoH:Airborne's drop mechanic, and Skate.'s control method).
IMO :P :wink: :P :wink: :P :wink:
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Postby Jay » Wed Feb 27, 2008 9:02 am

EA Offer Puts Ubisoft Under Pressure

Gamesindustry.biz wrote:Dow Jones writer thinks move puts pressure on French company

EA's hostile bid for Take-Two Interactive might be seen as a mixed blessing by rival Ubisoft.

According to a Dow Jones newswire article, the move puts more pressure on Ubisoft to grow its business quickly.

Ubisoft could consider bidding for Take-Two itself, although Dow Jones writer Sean Walters thinks getting caught in a bidding war would be financially daring, if not foolhardy.

Ubisoft's market capitalisation is approximately EUR 2.7 billion, not much more than the EUR 1.5 billion it would take to purchase Take-Two if the price reached USD 30 per share.

Instead, he speculates that Ubisoft could take a serious look at another US developer such as THQ whose market cap is within the company's reach. Even so, a combined Ubisoft/THQ would have an annual revenue of about EUR 1.4 billion - compared to EA's EUR 2.1 billion.

With few game developers of sufficient size to allow Ubisoft to rapidly build up its business, Ubisoft must rely on its capacity to continue generating strong organic growth to keep predators at bay.

Walters does point out that one consequence of EA's purchase of Take-Two might be that the company could decide to sell the 15 per cent stake it currently owns in Ubisoft.

While this would probably be welcome news for Ubisoft, it could also open the door to other media companies with an eye towards acquisition. Time Warner, for example, currently has a 10 per cent stake in SCi but might see Ubisoft as a better investment it can easily afford.

Convincing Ubisoft CEO Yves Guillemot and his family to sell Ubisoft is another matter, as the company's net profit has doubled over the past two years and the stock price has risen some 71 per cent over the past year.

Walters says the question is - as games industry consolidation intensifies - how long can Ubisoft afford to stay independent?
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Postby Jay » Wed Feb 27, 2008 9:06 am

God, I should read Gamesindustry.biz more often.

Apparently, Sam Houser (CEO of Rockstar) has threatened to take Rockstar out T2 if the merger goes ahead

Gamesindustry.biz wrote:EA could make GTA games without Rockstar says analyst

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.
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Postby :Dan » Wed Feb 27, 2008 10:59 am

That last line is odd. I was under the impression that 2015 developed Allied Assault, and then a large bunch of them split off to form Infinity Ward. Unless Activision had a bigger hand in that then was let on.

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Postby Jay » Wed Feb 27, 2008 11:07 am

Infinity War split off from 2015, yes, and the Activision bought them. IW needed someone to publish their games, and I doubt they'd want to join EA. Probably Activision paid the highest for them or something
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