In what appeared to be the dampest of squibs, Take-Two and its investors rejected EA's tender big at its AGM overnight, saying the offer was simply too low.
"The board believes that Take-Two is worth more than $26 per share," said Strauss Zelnick at the meeting. "That said, we are 100 percent committed to creating more value for stockholders, and will consider all options, including staying independent."
Zelnick added: "We're in the position of generated shareholder value in a sector at the fastest-growing segment of the entertainment industry. EA's offer came at a highly opportunistic time, as it comes right before the launch of the next instalment in the most successful franchise in this entire industry. We've received several advance reviews, and with one exception, they are all perfect scores. My mom couldn't write a bad review about this game."
Just in case you didn't get the reason Take-Two's rejecting the EA offer, here it is again, only this time with added sports:
"We don't think the EA offer properly compensates you, the shareholders, for the synergies EA would enjoy," continued Zelnick. He said analysts valued said synergies at over $210 million per year, with EA enjoying massive savings from not having to compete with Take-Two's sports line. "When we take on EA in sports head-to-head, we beat them every time."
Thanks to Gamespot.