EA Takes Out $1 Billion Loan For Take-Two Acquisition

Illustration for article titled EA Takes Out $1 Billion Loan For Take-Two Acquisition

SEC filings have revealed that Electronic Arts borrowed $1 billion from Morgan Stanley and other lenders to help finance a possible acquisition of Take-Two.

Advertisement

"There's no news here," said EA VP of communications Jeff Brown. "This is just a process point on something we announced in February."

With $2.3 billion on hand in cash, cash equivalents and short-term investments, EA already has the funds available to do the deal as it currently stands. With the deal not contingent on financing, why borrow more money?

Advertisement

"It helps us maintain maximum flexibility for any opportunities," said Brown.

Take-Two had no comment as of press time.

Share This Story

Get our newsletter

DISCUSSION

Amazing how your talking about how we wont see innovation in future franchises with the exception of big wigs. Who do you think is responsible for most innovative unique games? Big players in the gaming field! Army of Two was another title. Everyone wants to blame EA for releasing rehashed sequels, who can blame them? They sale! As long as consumers demand it they will deliver! Blame fellow gamers.