EA criticised over "White Knight" comment
In recently weeks, Electronic Arts has shown an unyielding desire to acquire Take-Two Interactive, the company behind both 2K Games and Rockstar Games studios. From a business perspective, this would grant EA control over IPs such as Grand Theft Auto and Bioshock. Take-Two has said that they will not begin any negotiations until after GTAIV releases later next month.
In queue for further negotiations, Electronic Art’s Chief Executive John Riccitiello made a discourteous remark towards Take-Two describing EA as a “White Knight” for a more secure future. In result, this has spawned a quantity of comments by analyst in opposition to EA.
Janco Partners’ Mike Hickey comments:
“My belief is Rockstar would be perfectly happy if EA never put a bid in at all. White knight commentary is total bullsh*t, and disrespectful to both the developers at TTWO and the new management team that has already achieved success.”
Wedbush Morgan Securities’ Michael Pachter added:
“‘White Knight' usually signifies rescue from a hostile suitor (the connotation is to a damsel in distress). I think Riccitiello's use of the term was incorrect, and perhaps a misplaced attempt to sound clever. They are in no sense a White Knight.”
Finally, DFC Intelligence’s president David Cole supplied his opinion:
“The issue is really more about shareholder value and whether EA is a white knight for Take Two shareholders by offering to pay them the maximum value they feel they can get.”
Riccitiello said that he has not spoken directly to Rockstar, but has mentioned that EA could offer them a “stable parent.”
“We, in many ways, represent a white knight.” Riccitiello said.
PSU now asks our readers to present their own opinion on the matter in the comments section below. Do you feel Riccitiello’s comments are justified? Or do you feelings echo that of Hickey’s comments? Let us know!