Newsletter Signup
Where current and emerging technology trends meet.
TecTrendsInformation Sources, Inc.
  | About TecTrends | Email Signup | Contact Us
 Live Search:
Live Search | Articles | Companies | TecTerms | Products
  Loading TecTrends Live Search - please wait... 
View Noteworthy Articles      PRNewswire
 
Article

Title: Take-Two's Severance Plan Puts EA On Notice

Author: Nuttall, Chris Article Type: Company
Source: Financial Times, p19(1) Publication Date: Mar 10, 2008
URL of Publication: http://www.ft.com

Take Two announced a generous severance package for of its employees, forcing Electronic Arts (EA) to reconsider its proposed acquisition of the company. The severance package would offer employees one and half times their current salary and a bonus for up to eighteen months should they lose their jobs following an acquisition. EA and analysts expressed surprise at the deal, as Take Two's executive team secured larger bonuses and salaries for themselves as well as company shares worth millions in private talks last month. Executives are not included in the severance package. Yahoo! Inc. announced a similar severance package for employees recently, in a move widely seen as aimed at fending off Microsoft's unsolicited takeover bid. EA has indicated that there would be job cuts should it take over Take Two, but has been less than forthcoming about its plans for 2K Sports, which offers many titles that compete with EA Sports. Take Two rejected EA's offer of $26 a share, one dollar higher per share than its initial bid. Analysts now expect little movement in the deal until Take Two's much anticipated titled Grand Theft Auto 4 is released on April 29. EA has been trying to acquire Take Two before the game is released at lower cost. Though EA has said that Take Two is 'depreciating as an asset.' EA has insisted that Take Two will be worth less unless it is able to use its marketing team to promote the games worldwide. Analysts note that video game publishers are in a period of accelerated consolidation.

Companies:
Electronic Arts Inc Microsoft Corp
Take-Two Interactive Software Inc TecTerms
Yahoo! Inc

Products:
Employee Benefits

TecTerms:


[Get Copyright Permissions] Click here for copyright permissions!
Copyright 2004-2008 Information Sources Inc.
 


Home About TecTrends About Us Contact Us Privacy Statement Terms and Conditions

TecTrends | P.O. Box 8120 | Berkeley CA 94707 | (510) 525-6220 | Email: tectrends@tectrends.com
© 2006 INFORMATION SOURCES INC | All rights reserved.