Take Two Open To 'Business Combination' News

Take Two Interactive's chief, Strauss Zelnick, has this evening responded to EA's latest deadline extension, reaffirming his previous view that the $2 billion takeover undervalued the Rockstar Games parent company.

"The latest extension of EA's unsolicited, highly conditional tender offer does not alter the fact that their proposal still significantly undervalues Take-Two, a fact that is reflected in the overwhelming number of stockholders who still have not tendered their shares," said Strauss Zelnick, Chairman of the Board of Take-Two.

He continued, "Our Board of Directors remains in unanimous agreement that the proposal is contrary to the best interests of Take-Two stockholders, and the Board continues to recommend that stockholders not tender their shares to EA. The Board remains focused on the strategic process that began formally on April 30 to consider all alternatives to maximize value. We believe that these alternatives, which may include a business combination or remaining independent, will deliver greater value to stockholders than the current EA offer."

News of Zelnick's latest response about the possibilities of a 'business combination' comes just days after analysts suggested a merger between Ubisoft and Take Two could be on the cards. Ubi certainly has a solid enough war-chest to talk about a merger with Zelnick, Ben Feder, and the rest of the board, although any confirmation that talks between the two are occurring, are yet to emerge.

Feder, Take Two's CEO, also commented on the latest deadline from EA: "Take-Two's vast potential to create and enhance stockholder value has become even more evident in recent weeks, with the runaway success of Grand Theft Auto IV, a product pipeline that is one of the strongest and most creative in our history, and continued operational and financial progress. We believe that any alternative we consider must fully reflect the value we are creating and capture that value for the benefit of our stockholders."