It is about the time that Electronic Arts (NASDAQ:ERTS) is expected to extend its hostile bid of Take-Two Interactive (NASDAQ:TTWO). Take-Two has argued that it is worth much more than the EA offer. Two things would say that the argument is not true.
First, although the new Take-Two "Grand Theft Auto IV" video game launch was extraordinarily successful, it failed to move the company's stock up. Second, no company other than EA has offered a dime for the company. That may be because Take-Two's recent earnings have been lackluster. It also may arise from the fact that very few companies can get the kind of economies of scale that EA can get from buying another video game company.
All of this should convince the EA management that its best bet is to do what Microsoft (NASDAQ:MSFT) did with Yahoo! (NASDAQ:YHOO). Redmond simply walked away and watched the stock of its target fall. Then, lawyers and raiders crawled all over the company.
Reader Comments (Page 1 of 1)
5-19-2008 @ 12:05PM
LeeAnn said...
This is what the CEO of EA (Electronic Arts) thinks of people....the VERY SAME people who buy his games and subscribe to POGO GAMES ON LINE which is owned by EA.
"...John Riccitiello, CEO of video game factory Electronic Arts. Riccitiello is quoted in the Wall Street Journal as saying that most video games are boring..."
This is pretty rich considering this is how he makes his personal fortune and lives the high life. And then he wants to buy more?????
As a subscriber to POGO, since I joined, the rates have jumped up drastically and the Customer Service his company offers is THE ABSOLUTE WORST!!!!!! EA could care less about the subscribers and all they care about is how much is going in their bank account.
I can say without a doubt that as each of my accounts come up for renewal, that I will NOT be doing so. I certainly do not mind paying for a service if they in turn provide a quality product, but since EA has taken over POGO, they quality has swiftly slid in the crapper and as stated, their Customer Service is the ABSOLUTE WORSE there is.