Take-Two Prepares for Takeover with Pay Increases

(NewsVisual, powered by IntellectSpace )-- As Electronic Arts Inc (NASDAQ: ERTS) continues its pursuit of a takeover, Take-Two Interactive Software Inc (NASDAQ: TTWO) made a recent move that suggests that it could soon succumb to EA’s advances.

According to regulatory filings, the board of Take-Two approved a measure just days after receiving EA’s buyout offer that would dramatically increase the compensation of the management team in the event of a takeover. Though the video game publishers have yet to strike a deal and Take-Two has been public about its rejection of EA’s offers, this latest move could indicate that a deal is inevitable.

Take-Two’s board denied that the measure was related to EA’s takeover interest, though it’s difficult to ignore the timing. Analysts have been quick to question the new compensation package, which was created just before Take-Two rejected EA’s offer.

An IntellectSpace Knowledge Map created by NewsVisual illustrates key past and current corporate connections that could have an impact on future discussions between the companies.

The most notable link connects EA and Take-Two though Mark Sanders Lewis, who was with EA for fifteen years as a Senior Executive and later served as a Director at Take-Two between 2001 and 2007. Other interesting relationships involve Directors and Executives from either company that may be well acquainted through a common entity. EA Director Leonard S Coleman Jr and Take-Two Director Robert A Bowman may know each other, since each has held various senior positions during overlapping years with Major League Baseball.

Numerous other sets of relationships through common connections link past members of the leadership teams at EA and Take-Two, which could have been pivotal in starting discussions and may also become useful in facilitating negotiations in the near future.

Click here or copy this link into your Internet Explorer browser for an interactive version of this IntellectSpace Knowledge Map: http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=6ee0b71f-62e9-481d-90a2-79e7589dae56

See article from The New York Times DealBook