Blog Post

Electronic Arts Revises Take-Two Tender Offer; Wants Poison Pill Invalidated; Date Changed

The Sturm und Drang has given way to a chess match: Electronic Arts (NSDQ: ERTS) has updated the terms of its hostile, tender offer, two days after Take-Two rejected it, adopted a poison pill and changed the date of its shareholder meeting. That meeting was pushed back a week, from April 10 to April 17, so Electronic Arts has moved the deadline of its offer from April 11 to April 18. And in response to the poison pill — which would cause dilution to the acquirer – Electronic Arts says it will only proceed if the poison pill is somehow invalidated or recanted by the board. Its only direct statement on the process: “The actions of the Take-Two Board may increase the risk for their stockholders by delaying a potential transaction… We continue to believe that our $26.00 per share offer price is full and fair, and that a transaction between Take-Two and EA is the most compelling combination financially, strategically and operationally for all parties.