ZelnickMedia payout draws Wall Street’s attention

By Patrick Garratt
27 February 2008 06:31 GMT

According to this, ZelnickMedia, the investment firm in charge of Take-Two, engineered a new payout system for itself shortly after EA put in its first offer for the publisher. In the event of a sale, the report says, ZelnickMedia would now get a large payout.

The news has obviously drawn attention from regulators overnight, especially given ZelnickMedia Strauss Zelnick’s refusal to accept EA’s terms despite a huge premium being placed on the offer.

“The size and timing of the compensation boost for the firm, ZelnickMedia Corp. of New York, is drawing attention from analysts and corporate governance experts, in part because of provisions in ZelnickMedia’s agreement that could give it a big payout in the event of an acquisition such as the one EA is proposing,” said the report.

Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission. Read our policy.

VG247 logo

Buy our t-shirts, yeah

They're far more stylish than your average video game website tat.

VG247 merch