Rumorama: EA Quitting T2?
Scant days after entering into its so-called secret negotiations, EA may be over its long-standing desire to own Take-Two. Witness investment site Seeking Alpha's Wall Street tales:
Yesterday's session featured some strange exchanging of Take-Two Interactive Software Inc. (TTWO) shares, just one day before the company is set to release earnings.There was no news released, though Barron's later said that the price decline was due to rumors about Electronic Arts Inc. (ERTS) walking away from merger talks. ERTS had an executive speak at a conference right around noon.
EA management dislikes Strauss Zelnick and his team primarily because of the golden parachute deal Zelnick inked for himself in the event of T2's acquisition - although for the CEO who took over T2 with his own shareholder revolt, it's hardly surprising to see the fellow secure himself (EA head Riccitiello doesn't have the same personal risk, for instance). EA seems more likely to be beating its drums than walking away from the deal it has worked on for so long, but with secret negotiations anything could happen!
Rumor: EA Walking Away from Take-Two Negotiations [GamePolitics]
tiny dancer
Posted to Hot Stuff, Miscellany on 4 September 2008
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