
For those that don't understand the fuss over the Sports games, then you're not familiar with the loss of the NFL license to EA. There's a lot of spin around how that deal worked out with regards to the RFP (Request for Proposal) for the exclusive rights to the NFL license, but make no mistake, when an RFP like that is put out there, it's usually at at the behest of a client with close relationships and many times the deal is already done before the RFP ever hits the streets. I have witnessed this in other businesses, and it is not an uncommon practice.
Many players who loved ESPN NFL 2K5 have out right rage and anger towards EA for signing the exclusive NFL license and killing one of their favorite games. Note that EA didn't produce a better product, or a better game, they destroyed a game by locking up the license. Pick one of your favorite games, any game, it doesn't matter which one as long as it's a favorite with a fairly normal release cycle (new installment every 1 to 3 years). Now imagine it gone. You'll never be able to play it again. Why? Not because the game wasn't good. In fact it was great selling nearly 2.5 million copies. It's gone because another company couldn't compete with it and paid another company off to take the licensing away from your favorite game. This in a nutshell is why people dislike EA.
Now, fast forward 3 years to today and you see EA making what is now a hostile take over attempt for 2K. Despite EAs talk, this company has no respect for Take Two's IP, much less their people who are going through hell right now and most of which don't want to be part of the EA umbrella (based on forum posts at various company websites).
That's the sinister part. EA is doing this BEFORE GTA4 hits the street, because they know Take Two is in the midst of a turn around and the GTA4 release is where the U meets the the turn.
When I saw the website they put up a couple of weeks ago, I found that to be a bit strange. A company doesn't go through the paces of putting something like that together unless they are reaching out to the shareholders in a hostile take over attempt. Today, they made their hostile bid official. http://biz.yahoo.com/bw/080313/20080313005266.html?.v= I have never seen another gaming company so completely disregard the IP of another company, or so completely disenfranchise gamers. I have no respect for any company that squelches innovation or deprives me as a gamer from my choice in games, much less from a game that I love.
Midst of Turn Around
This is a quick grab by EA. Take Two reported losses for their last quarter, but they are in the midst of a company turn-around.
Read this Motle Fool Article about EA's Attempt at Highway Robbery
The quarterly loss widened to $0.52 a share, or $0.42 a share once you back out stock-based compensation and reorganization expenses. On that adjusted basis, Wall Street was looking for a $0.51-a-share deficit. Even though they lost money, it was expected and they beat the estimates by a .09 margin (this is a good thing!). Take-Two's upped outlook now calls for the company to earn $1.35 a share to $1.55 a share in adjusted profits, on $1.25 billion to $1.4 billion in revenue.
This is why EA wants them. They are about to start turning profits again. EA is trying to buy them on a down turn, in a highly hostile take over attempt.
The new numbers make one think that Electronic Arts was trying to perpetrate highway robbery by offering to buy Take-Two for just 16-19 times this year's profitability.
Highway Robbery indeed. ---> http://www.eattake2.com/
EA Employs Scare Tactics Against Take Two Shareholders
Of everything going on, this is the biggest threat to the APF franchise. If EA gets Take Two, they more than likely will dissolve the Sports groups.
Here's an Article from GameSpot
"If we don't conclude this transaction, if we walk because of whatever level of inability to get this done, the scary thing is what the stock trades at after we leave, not after April 29," he stated."
Nice scare tactics. John Riccitiello and EA are disgusting. For the first time in my life I literally hate a gaming company.
ObiKKa