MJCfromCT
12-16-2004, 12:45 PM
http://www.gamespot.com/news/2004/12/15/news_6115146.html?part=rss&tag=gs_pc&subj=6115146
Digital Illusions stockholders balk at EA's buyout offer; deal that was to close December 27 now in limbo.
Two days after gaming giant Electronic Arts spent a bundle on obtaining an exclusive National Football League license, its attempts to acquire Sweden-based Digital Illusions CE is proving that money can't buy everything. According to reports in the business press, EA's proposed buyout of the Battlefield 1942 developer has hit a snag.
Currently, EA owns 19 percent of DICE stock, and the buyout was intended to fully integrate the developer into the publisher's studio empire. But despite DICE's board of directors' approval of the integration and recommendation that stockholders agree to the deal, two factions of stockholders, one owning 16 percent and the other owning 12 percent of company stock, are reportedly voting against the merger. Ninety percent stockholder approval is needed to approve the deal.
According to reports, both holdout groups feel the offer from EA does not take into account the projected earnings stemming from two new titles due out in 2005. Those titles would be Battlefield 2 for the PC, set to ship next spring, and its console cousin Battlefield: Modern Combat for the Xbox and PlayStation 2, due next fall.
Digital Illusions stockholders balk at EA's buyout offer; deal that was to close December 27 now in limbo.
Two days after gaming giant Electronic Arts spent a bundle on obtaining an exclusive National Football League license, its attempts to acquire Sweden-based Digital Illusions CE is proving that money can't buy everything. According to reports in the business press, EA's proposed buyout of the Battlefield 1942 developer has hit a snag.
Currently, EA owns 19 percent of DICE stock, and the buyout was intended to fully integrate the developer into the publisher's studio empire. But despite DICE's board of directors' approval of the integration and recommendation that stockholders agree to the deal, two factions of stockholders, one owning 16 percent and the other owning 12 percent of company stock, are reportedly voting against the merger. Ninety percent stockholder approval is needed to approve the deal.
According to reports, both holdout groups feel the offer from EA does not take into account the projected earnings stemming from two new titles due out in 2005. Those titles would be Battlefield 2 for the PC, set to ship next spring, and its console cousin Battlefield: Modern Combat for the Xbox and PlayStation 2, due next fall.