EA to borrow billions of dollars for possible Take-Two overname acquisition

Publisher Electronic Arts has taken out a loan of one billion dollars for the possible acquisition of Take-Two. The credit comes from several major banks, including Morgan Stanley.

Although the agreement between Electronic Arts and Take-Two Interactive still seems a long way off, the publisher has built up the necessary financial reserves. The banks and the company have informed the Securities and Exchange Commission that they have agreed a loan of up to $1 billion. Morgan Stanley will provide forty percent of the amount and will therefore have the largest share of the credit turns out from the banks’ commitment letter to EA, published on the SEC’s website. In addition to the billion dollars borrowed, EA also had $2.3 billion in cash and short-term investments at its disposal as of March 31, according to the original tender offer. mention.

Electronic Arts attempted to finalize the acquisition before the launch of Grand Theft Auto IV, but Take-Two Interactive’s board continued to say they would not talk about an acquisition until after that game’s release. Now that the game is in the shops and EA has secured a large loan purely for the acquisition, it seems only a matter of time before both parties sit down.