EA Loans $1 Billion For Take Two Purchase
Electronic Arts' offer to buy Take Two triggered only blunt refusals so far, but the mammoth publisher just won't give up. Recently, EA announced it had secured around $1 bullion in loans just in case the GTA IV company would have a change of heart...
May 12, 2008
The sudden need of cash seems strange for such a huge institution as Electronic Arts, but, apparently, the situation is nothing out of the ordinary. Wedbush-Morgan analyst Michael Pachter explains:
“After [the acquisition of] Pandemic/BioWare, EA has only around $1.7 billion in available cash… The Take-Two deal is around $2.1 billion… so they’re short. They also probably need around $400 million in available cash for working capital needs, so they need to raise around $800 million to complete the deal. The extra $200 million is just a cushion, although I suppose it could be construed as how much higher they’re willing to go [for Take-Two]…”
So Electronic Arts still has hopes to get its hand on Take Two. In the mean time, the latter continues to be amazed of Grand Theft Auto IV's most-successful debut: the game made over $500 million during the first week on the market.
Also, the game topped the Xbox Live charts, forcing long-time successes like Call of Duty 4 and Halo 3 to step down.