Tag Archives: Strauss Zelnick

Take-Two boss Strauss Zelnick said in the firm’s Q1 earnings call today that mature content on Nintendo platforms is something he’s going to do well. Go, Strauss.

“I do believe there is an opportunity for M-rated titles on Nintendo,on the DS and on the Wii,” he said. “I believe we’re the right company to be delivering that content.”

Grand Theft Auto: Chinatown Wars is out March 20. Where’s GTA for Wii, then?

According to this Edge report, Take-Two chairman Strauss Zelnick’s claimed that tie ratios for GTA IV are the highest of any game in the series, at 32 percent for PS3 and 28 percent for 360.

The exec cited NPD data as proof.

“Our tie ratio for Grand Theft Auto IV illustrates the strength of the franchise,” said Zelnick, speaking at the UBS Global Media and Communications Conference this week.

GTA IV is currently the highest ranked game on Metacritic, with a score of 98 percent.

Take-Two says it is expect to sign a confidentiality agreement with EA which will allow “EA to enter into Take-Two’s formal process to evaluate strategic alternatives,” writes CVG.

“We welcome EA into our formal process and look forward to demonstrating to their Board the significant strides made by Take-Two since they last undertook a detailed review of our business in early 2007,” said Strauss Zelnick, chairman of Take-Two

“Our Board remains unwavering in its belief that EA’s unsolicited conditional tender offer of $25.74 per share was inadequate and undervalued Take-Two’s world-class entertainment franchises and our strong operational and financial performance.”

More through the link.

By Mike Bowden

EA’s announced that it won’t extend its deadline to buy Take-Two after its current deadline lapses tonight, saying that it doesn’t believe it could integrate the firm in time for Christmas if things drag on any longer.

Take-Two shares fell nearly 6 percent in premarket trade to $23.38 today.

The news comes after weekend talks between EA chief John Riccitiello and Take-Two chairman Strauss Zelnick.

EA has said it will see a three-year plan presentation from Take-Two, but that it’s five-times-renewed tender offer will drop tonight.

So that’s the end of that. For now.

Speaking to VentureBeat at E3 last week, Take-Two boss Strauss Zelnick has said that one of his main challenges since taking over at the firm has been to deliver a business that’s stable in the “off” years from GTA – and he feels as though he’s close to achieving it.

“We aren’t giving guidance for 2009 yet,” he said. “But I feel very good that we can deliver on that goal of a profitable enterprise even in non-GTA years.

“Look at our array of hits and owned intellectual property. We have 30 million-plus selling titles, 15 of which are fully owned. BioShock. Carnival Games. Our entire 2K sports line-up, like NHL, MLB, and NBA. TopSpin tennis. Carnival Games for the DS and Carnival Games for Mini Golf. Civilization is out in the market now and doing extremely well. Midnight Club LA is coming up and the list goes on.

“It’s just not true that we are only about GTA.”

Lots more through the link, and very much worth a read.

EA’s extended its tender offer for Take-Two, after capturing only 15 percent of the company’s shares with its previous deadline.

The offer is now valid until 11:59pm EST on August 18. This is the fourth time EA has extended its deadline in this way.

Take-Two chairman, Strauss Zelnick, responded, “Take-Two’s Board continues to be 100 percent committed to maximizing stockholder value and remains unanimous in continuing to recommend that our stockholders not tender their shares to EA.

“We are fully engaged in a formal process to evaluate strategic alternatives that have the potential to deliver greater value than EA’s inadequate offer. As part of this process, we continue to engage in meaningful discussions with multiple parties, a number of whom have been conducting due diligence. We also remain absolutely focused on executing on our strategic and business objectives.”

Strauss Zelnick, Take-Two’s chairman, has responded to EA’s offer extension to July 18 with the same line he’s always stuck to – the price isn’t high enough.

“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,” he said.

“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.”

CEO Ben Feder added: “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.”

Press release after the link.

More »

Speaking at the Piper Jaffray consumer conference in New York yesterday, Take-Two boss Strauss Zelnick admitted that the company is actively pursuing interests in episodic content, saying the model takes a lot of the risk out of retail.

“If we can get a good model for episodic content for high quality titles, that should be a pretty profitable business because there are no hard goods associated with it,” he said.

The company head also talked about micro-transactions at the event, saying that allowing players to “change the way characters look, [add] weapons, cars and the like” is a valid way forward and that he has an aim at the moment to “turn packaged goods partially into a subscription business, and drive some of the volatility out.”

Thanks, Kotaku.

What a night. Following the release of the first in-game footage of Duke Nukem Forever, Take-Two issued second quarter financials and a mass of news on Grand Theft Auto, Bioshock, a GTA IV DLC delay and much more. You missed the release and the conference call because you’re not hardcore enough to do nothing but videogames news for your entire waking life. Luckily, we are. All the links below. Alternatively, hit this.

• Take-Two may enter rhythm-action space
• EA offer costs Take-Two $5.3 million in legal fees
  Bioshock movie may come alongside third game, says Zelnick
• GTA IV DLC: Same team and studio making content, delay nothing to do with dev issues
• GTA accounted for 78% of Take-Two’s revenues for Q2
• Take-Two has 33 games in development, sports business to make loss this year
• Take-Two actively in discussions with a number a companies over buyout
• Rumour confirmed: Gore Verbinski to direct Bioshock movie
• GTA IV DLC delayed until Q1 FY 09
• GTA IV sells 8.5 million units out of 11 million shipped, Bioshock hits 2.2 million
• Take-Two profits beats expectations on strong GTA IV

Speaking in last night’s Q2 financials conference call, Take-Two chairman Strauss Zelnick admitted the firm was looking at the rhythm-action sector for potential future launches but was cautious of releasing a title at the moment.

“Possibly,” he said when asked if a music game was on the cards. “There’s nothing that we’ve disclosed on the release schedule right now. Is it a music genre? Is it a rhythm genre? It all remains to be seen how that genre holds up over time, and that’s terribly important when you invest in AAA properties that you expect people to play for over 20 hours.”

Hit this for the rest of our news from the financials report and yesterday.

Speaking in an investor call related to just-released Q2 financials, Take-Two head Strauss Zelnick said that the now-confirmed Bioshock film would not release alongside Bioshock 2 next year.

“It’s more likely that it would be released coincident with BioShock 3,” he said.

This is, obviously, the first time a third Bioshock game has ever been mentioned.

As reported earlier, Gore Verbinski will direct and produce the movie.

EA has confirmed it is to extend its $25.74 per share tender offer to buy Take-Two to June 16, to which Take-Two’s responded in the predictably nonchalant way, saying the offer undervalues the company.

EA had acquired only 8 percent of Take-Two’s shares before its deal offer timed-out on Friday.

“This is the same highly conditional proposal that EA offered Take-Two stockholders on March 13, 2008, which our Board of Directors thoroughly reviewed and unanimously determined to be inadequate and contrary to the best interests of Take-Two’s stockholders,” said Take-Two boss Strauss Zelnick.

“As such, the recommendation of our Board of Directors that stockholders not tender their shares to EA remains unchanged. The Board is committed to maximizing stockholder value and is exploring all strategic alternatives to do so. We said we were willing to begin formal discussions with interested parties on April 30, following the launch of Grand Theft Auto IV, and we have in fact begun that process. We are confident in the significant growth potential of Take-Two and in the unique value of our business given our strong position in this growing and dynamic industry.”

Press release after the link.

More »

Speaking in this CNBC interview, Take-Tweo chairman Strauss Zelnick has claimed that there are no technical problems with GTA IV at all.

When asked about any issues with the game, Zelnick replied, “No, none whatsoever. I’d say the only issue is that someone came up to me yesterday in a restaurant and said my thumbs were hurting from the weekend.”

Genius. This lot are all tripping then, presumably. Thanks, Maxconsole.

Bit late on this, but Take-Two chairman Strauss Zelnick’s told the New York Times that he feels “vindicated” in fighting off EA’s advances by the initial success of GTA IV.

“The critical and consumer response to Grand Theft Auto IV vindicates our strategy of waiting until the launch with regard to EA’s offer,” he said.

EA isn’t taking any notice.

“We’ve seen a share price above and below our offer and it doesn’t change anything. We knew the game would be an extraordinary success,” said EA communications boss Jeff Brown. “All of that was factored into our offer of $2 billion.”

More through the link.

Strauss “Packet” Zelnick isn’t impressed with EA’s new tender offer for Take-Two of $25.74 per share. He’s not impressed at all.

The reduction in price from $26 per share is based on the fact shareholders – some of them, anyway – agreed to tender a further 1.5 million shares to ZelnickMedia at Take-Two’s AGM last night.

“The minuscule number of shares tendered, as well as the strong vote in favour of the proposals presented at our annual meeting, offer indisputable evidence that our stockholders regard our efforts to enhance Take-Two’s stockholder value as superior to the EA offer,” said the Take-Two boss in a statement.

“This is the same highly conditional proposal that EA offered Take-Two stockholders on March 13, 2008, which our Board of Directors thoroughly reviewed and unanimously determined to be inadequate and contrary to the best interests of Take-Two’s stockholders.

“Take-Two’s Board of Directors has maintained from the beginning, and continues to believe, that EA’s proposal undervalues our Company. It undervalued the company at USD 26 per share, and it certainly undervalues Take-Two at $25.74.”

Thanks, GI.

Trust us: you really can’t be bothered trawling the web for this lot. Not a huge amount happened at the Take-Two AGM in New York last night, but for the completists among you, we’ve put everything in one handy place. It’s because we love you. And hate bed.

VG247 coverage

• Take-Two AGM: Zelnick takes two questions then shuts meeting
• Take-Two AGM: Listen to the full meeting online
• Take-Two AGM: Shareholders approve Zelnickmedia incentive package, EA calls foul
• Take-Two AGM: Shareholders re-elect board until 2009
• Take-Two AGM: “Take-Two is worth more than $26 per share,” says Zelnick

Elsewhere

• Gamespot’s report from the meeting
• Take-Two’s meeting outcome announcement
• “Take-Two’s Annual Meeting Lacks Fireworks,” by TheStreet
• AP report in incentive package vote
• “New Investors Barred from Take-Two Meeting, EA Resistance Continues,” from Gamasutra
• Kotaku’s report from the meeting

In what pretty much sums up the entire Take-Two AGM last night, Gamespot brings word that chairman Strauss Zelnick answered only two shareholder questions before shutting up the meeting.

The floor was then opened to stockholders’ questions–of which there were only two. First, Zelnick declined to answer a query as whether Take-Two had entered into any confidentiality agreements with other potential buyers, as it has previously publicly hinted. Secondly, he refused to comment on today’s announcement that the Federal Trade Commission was investigating the possibility that an EA takeover could violate antitrust laws. Then… the meeting was unceremoniously adjourned, leaving analysts and reporters to ponder Take-Two’s next move.

Brilliant. Read the rest of last night’s happenings here, should you be bothered.

You can listen to the entire Take-Two AGM here, should you feel the need. The whole thing went off without a hitch, unfortunately. Read the rest of our coverage here.

Take-Two shareholders passed a proposal at last night’s company AGM to grant ZelnickMedia, Take-Two’s manager, 1.5 million shares of restricted stock.

EA communications boss Jeff Brown immediately waded in on the news, saying the approval was like “asking your last employer to give you a million dollar raise and forcing your new employer to pay it.”

Take-Two only allowed shareholders before February 19 to vote on the matter, a date five days prior to EA putting its original bid public. Apparently, more than half Take-Two stock has changed hands since, effectively cutting 50 percent of Take-Two’s shareholders out of the vote.

Zelnick called the criticism “disingenuous” and noted that the company extended the opportunity for shareholders to put proposals on the ballot, which they did not do. EA, he added, knows how record dates are selected for shareholder meetings and there was nothing unusual about Take-Two’s February 19 cut-off.

More here.

Shareholders at Take-Two’s AGM in New York last night voted to keep the current board in place until 2009, the company has announced. Confirmation that Strauss Zelnick and the rest of the chief execs would be in place until this time next year was not announced at the meeting, apparently, which, by all accounts, seemed rushed and dull. There wasn’t even any swearing.

“Today’s vote demonstrates stockholders’ confidence in management and the Board of Directors of Take-Two,” said Zelnick. “The Board and management remain committed to acting in the best interests of stockholders. We are confident in the significant growth potential of Take-Two and in the unique value of our business given our strong position in this dynamic industry.”