The Take Two + Electronic Arts merger possibility has been closed. Unfortunately for Take Two stockholders, their shares lost more than 20% of their value today, as final news of the failed merger came to light.
Electronic Arts (EA) has been in "hot pursuit" of Take Two, putting two billion duckies on the table as their offer. However, Take Two held out, and even after the release of Grand Theft Auto 4 hit the shelves and right off of them as the game broke serious revenue records, Electronic Arts did not substantially raise their offer.
Take Two has more than Rockstar Games, the maker of Grand Theft Auto, so its likely that they'll continue to be a solid company moving forward. My guess is that the stock took a hit since many speculative investors were hoping that EA would raise their offer. With news that they won't be doing so, they pulled out to place their bets elsewhere.
Electronic Arts (EA) has been in "hot pursuit" of Take Two, putting two billion duckies on the table as their offer. However, Take Two held out, and even after the release of Grand Theft Auto 4 hit the shelves and right off of them as the game broke serious revenue records, Electronic Arts did not substantially raise their offer.
Take Two has more than Rockstar Games, the maker of Grand Theft Auto, so its likely that they'll continue to be a solid company moving forward. My guess is that the stock took a hit since many speculative investors were hoping that EA would raise their offer. With news that they won't be doing so, they pulled out to place their bets elsewhere.
