|
Your continuous donations keep RPGWatch running!
RPGWatch Forums » Comments » News Comments » EA - Proposes Take Two Acquisition Bid

Default EA - Proposes Take Two Acquisition Bid

February 26th, 2008, 20:49
Yes, it is business.

It is so much a business that the CEO of Take 2 has said openly I believe that they won't sell at 26 $/share since they believe the bid to be too low e.g. not what the company, Take 2, currently is worth.

Surprisingly enough, everytime rumour of a merger exist, stock and share values skyrocket. I don't seem to understand why this ?

Anyway, I've read on the codex that EA's bid on 26 $ a share multiplied with 31 million shares = 806 Million US dollars. And I just think to myself: Where have EA kept all this money? I mean they have just bought Bioware/Pandemic for about the same amount and about 500 US dollars? or so were payment in cash. Do EA have sceret money stash somewhere? And if so where it is ? And do we need to outfit a party of advanced D&D players to combat the EVIL uberboss that is EA? or something like that…

Please support http://www.maternityworldwide.org/ - and save a mother giving birth to a child.
aries100 is offline

aries100

SasqWatch
RPGWatch Team RPGWatch Donor

#21

Join Date: Oct 2006
Location: Denmark, Europe
Posts: 2,007

Default 

February 26th, 2008, 21:06
Originally Posted by aries100 View Post
Surprisingly enough, everytime rumour of a merger exist, stock and share values skyrocket. I don't seem to understand why this ?
It's fairly simple. Stocks are generally purchased with a mind to make a profit, yes? In the case of any merger or acquisition, stock holders will either get stock in the new company (which is worth more than their old stock) or they will get bought out, for more than their stock is worth.

This means that once the merger/acquisition took place, the stock value has risen, and anyone who bought stock prior to the merger has made a profit. That means everyone wants to buy this stock. When everyone wants to buy stock, the normal "scarcity" dynamic takes place, supply and demand, and as with any good, the price goes up.

Originally Posted by aries100 View Post
Anyway, I've read on the codex that EA's bid on 26 $ a share multiplied with 31 million shares = 806 Million US dollars.
Incorrect. The bid is 2 billion USD.

Originally Posted by aries100 View Post
And I just think to myself: Where have EA kept all this money?
Purchases rarely happen in cash options all at once, though I believe this is a so-called all-cash offer.

Regardless, companies like EA tend to have enough liquid means to just buy out like that. Same is happening with Microsoft and Yahoo, and Microsoft bid 44.6 billion USD.
Brother None is offline

Brother None

Brother None's Avatar
SasqWatch

#22

Join Date: Oct 2006
Posts: 1,552
RPGWatch Forums » Comments » News Comments » EA - Proposes Take Two Acquisition Bid
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

All times are GMT +2. The time now is 20:07.
Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Copyright by RPGWatch