EA Extends Take-Two Deadline For Second Time

As expected, officials from Electronic Arts have announced that the company is extending its tender offer for all currently outstanding shares of common stock of Take-Two Interactive, with a new deadline set for 11.59pm EDT on May 16th. The original deadline for the offer was midnight EDT on April 11th, but Electronic Arts extended this to April 18th, following Take-Two’s alteration of the date of the company’s annual meeting of stockholders (which took place yesterday) and the establishment of a Stockholders Rights Agreement. Electronic Arts also amended its offer downwards, from $26 to $25.74 per share. The move takes into consideration the additional shares to be issued to Take-Two chairman Strauss Zelnick’s Zelnick Media, as agreed at the annual meeting. Electronic Arts’ aggregate consideration for Take-Two shares remains unchanged. The small drop in the share price offer runs in direct contradiction to advice given yesterday by Janco Partners analyst Mike Hickey, who suggested that a $30 share price offer may be needed in order to ensure shareholder support.