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EA Takes Out $1 Billion Loan For Take-Two Acquisition

May 10, 2008 in News comments 20

The news that many gamers are dreading. Many people don't want it to happen but its getting closer to reality. EA has already stated that they want to acquire Take Two. And we all know what happens when EA buys a company. They took a billion dollar loan from Morgan Stanley and other lenders to help pay for a possible taking of Take Two.

SEC filings have revealed that Electronic Arts borrowed $1 billion from Morgan Stanley and other lenders to help finance a possible acquisition of Take-Two.

"There's no news here," said EA VP of communications Jeff Brown. "This is just a process point on something we announced in February."

With $2.3 billion on hand in cash, cash equivalents and short-term investments, EA already has the funds available to do the deal as it currently stands. With the deal not contingent on financing, why borrow more money?

"It helps us maintain maximum flexibility for any opportunities," said Brown.

Take-Two had no comment as of press time.
Sayyed via kotaku.com »
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Most recently commented on by on May 12, 2008

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  • 0
    Capn Droid May 10, 08
    *bleep*ing EA. Just stop trying. You don't do anything to improve games; you only make the most out of it while making it crap.
  • -1
    Chad May 10, 08
    Oh wow, what are you doing EA? I honestly hope it works out well for EA, since it appears as though this is going to help drive them into the ground.
  • -1
    Slumpy monkey May 10, 08
    I think everyone is being a little harsh on EA. Sure sometimes they mess up, But quite alot of their games are really decent.

    Just because they make MORE games than any other developer alot more have a chance of messing up.
    • 0
      TurMoiL911 May 10, 08
      That's the thing: their games are only decent because their game series are always designed to crank out a game in the series every year. Where as you can look at games from Bungie and Infinity Ward who take time and effort into their games and the gamers reap the benefits of a great game with plenty of features. (Halo 3 and Call of Duty 4)

      If EA didn't force their developers to meet release dates every year, they can put for effort into making a better game instead of the same watered down games.
  • 0
    Stainless May 10, 08
    Their money hardly comes from the actual games anymore. So many people have become attached to EA games from the past - from all sports games, to James Bond classics. Children will keep buying products of EA without any regard of the actual game play.
  • 0
    lord of vice city May 10, 08
    what.....the......fu...

    a billion dollars?
    god i hope T2 dont sell out to this, but with this much, its hard to say no
    • 0
      Slumpy monkey May 10, 08
      A billion isnt that much for companies like EA and Take two.
    • 0
      Sayyed May 10, 08
      Im surprised they can get that much money
    • 0
      Final Blade May 11, 08
      Actually they already had a billion dollars a month ago ready to make a deal, but T2 stated "it would take more than that to buys us, were not that cheap"
      So with loans and shit its been bumped to 2.5 billion.

      Still T2 should tell them to *bleep* off, cause EA has done nothing lately than make shit games, and Decent ones.

      The only game i usual gets from the is NHL games, cause 2k8 version blew chunks and EA game was, Shockingly, better.

      Other than that i don't buy their games.
  • 2
    The Don May 10, 08
    Oh dear god. The GTA franchise will be in ruins if EA takes over Take-Two. Will EA just stop trying already?!
  • 0
    Twisted May 10, 08


    Go away. No one wants you to buy that company. Just GTFO.
  • 0
    Distortion May 11, 08
    Since when does EA have this money to begin with? Their games have just been going downhill lately.
    • 0
      Storm May 11, 08
      Well their quality in games have gone down, yes, but people still buy their titles. There's so many sports fanatics, after all.
      • 1
        Sayyed May 11, 08
        You think people would learn....

        And Shadow, they got the money from a bank and other companies. Im surprised that they made that much money from the companies though...
  • 0
    theundertakergonzo May 11, 08
    Please don't do it Ea. Please just do everyone a favour and stick to sport games FFS. I mean i can understand why they want to but sport games is their speciality!
  • 0
    Ameer May 11, 08
    You all speak as if EA are taking over development duties for GTA, which is clearly not going to happen. This is not the end. Stop the hysterics people.
    • 0
      Slumpy monkey May 11, 08
      QFT

      Everyone needs to chill the fck down acting like there going to kill off gta.
      • -2
        Ameer May 12, 08
        Lol

        Thumbed down for not saying EA have the intelligence of Final Blade.
  • 0
    BradSK May 11, 08
    Meh, I can't see EA's takeover affecting any future GTA games. The whole point of EA doing this is to get revenue from big games like GTA, so why would they change the formula if it already prints money?
  • 1
    NastyButler May 12, 08
    Actually I couldn't care less if they purchase Take-Two, and neither should you. Despite my disliking of EA, even they have the mindset to not alter, or influence any developmental action that Take-Two creates. Why alter a game which seems to thrive on its consistency. Does not seem as big as a deal as many are making it out to be.

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