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EA first went public with their offer to buy Take Two Interactive in February.  In March,  they escalated things to hostile.   In the months following it’s been much of the same back and forth: EA spokespeople say their price is “fair” and a “substantial premium.”  Take Two says the offer “significantly undervalues” the company.  Both sides created websites.  EA issues ultimatums and sets deadlines, Take Two fires back.  The dialog is mostly the same, as are the terms.  Only the deadlines change.  Most recently it was June 3rd. Then that deadline was extended to June 16th.  June 16th passed uneventfully.  Now, on Tuesday, Electronic Arts announced a fourth extension.  Now, the new deadline on EA’s tender offer to buy Take Two Interactive will lapse July 18th.   

Will this new date be final?  Or will the scheduling snafus continue?  The answers may hinge partly on regulatory issues.   Click to Read More

Not that there was any doubt, but just in case anyone was thinking a relationship could be rekindled, Yahoo announced today that any discussions with Microsoft over merger, or other relationship, are done. Now both sides have said it… more than once.

Yahoo said in a press release that following numerous meetings, talks were “concluded.”  Microsoft was not interested in pursuing an acquisition for all of Yahoo and Yahoo’s board has determined that the sale of just their search business would not be in their best interests.

Microsoft affirmed the statement in a press release of their owning stating, “As stated on May 3rd and reiterated on May 18th Microsoft was not interested in rebidding for all of Yahoo!.  Our alternative transaction remains available for discussion.”

Moving forward, Yahoo will instead supplement income and try to boost their search business by working with Google.   In a separate announcement, it was confirmed that the two have reached a non-exclusive search deal that could be worth an extra $250 to $400m in cash flow.

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Over the past couple of years it has been a recurring headline, a come and go promise that’s never been fulfilled.  Now, the news may finally match the rumor.  Multiple reports are suggesting Bertelsmann, the German media giant, is close to selling its 50% stake in the world’s second largest music label (Sony BMG) back to co-owner Sony.

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Corporate takeover battles are full of strategic shifts, risks and gambles. Poison Pills, Golden Parachutes, Offers and Counter Offers.  It’s a brinkmanship game.  Intrigue and misdirection are to be expected.  Given that, absent all the evidence, it can be difficult to judge the good from the bad when looking in as an outsider.  One thing that’s not hard to judge is the explicit opinion of expert consultants.  And when one calls your plans “nuts?” That’s not good, far from it.  Still that’s exactly the boiling cauldron of hot water Yahoo’s board of directors and CEO Jerry Yang have found themselves in this week.

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Earlier today, in light of recent revelations about Yahoo’s handling of the Microsoft merger offer, investor Carl Icahn went public with his latest words discontent.  His letter, which was filed with the SEC as part of the public record, is reprinted below.

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At this week’s D6 trade conference a question was asked of Rupert Murdoch about Carl Icahn’s grab at Yahoo.  Mr. Murdoch, often frank and to the point, replied “that’s not serious. He just wants to make a few hundred million bucks.”

Accurate or off base, one mogul’s insight on another is always fascinating.  Here, I’d suspect the conclusion is true as well.  Icahn is a special kind of value investor – he looks for corporate weakness and tries to turn it into short term investment opportunity.  He’s an opportunist imbued with the mentality of a trader, together mixed in with the instinct of a predator and the guile of a poker player.  He’s honed his game over years of practice.  The playbook is in memory; tried and true.  Yahoo, as a target,  was looking weak.  The opportunity was there.

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Where there is smoke there is usually fire.  A similar maxim is often true with investors: where one big name goes, others usually follow.  It’s something of a law of opportunity, an investor piggy-back clause.  People follow success and will ride its coattails. So where Warren Buffet invests, others follow. Where Icahn goes, others go too.  With Yahoo the bulls eye in Icahn’s game du jour, that’s not good news for the company’s management.

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