Take-Two Enacts Severance Plan for Employees Axed in Possible Buyouts

Rockstar and 2K Games parent company Take-Two Interactive is enacting a severance plan for employees fired in the event of a corporate buyout, reports Reuters.

The severance plan will give executives up to 1.5 times their salary with bonus for up to 18 months if they are fired within a year of a change in corporate ownership and control. Non-executive employees will receive up to six months in salary.

Late last month, Electronic Arts proposed an acquisition of Take-Two at a price of $26 per share, or approximately $2 billion total. Take-Two summarily rejected the offer, suggesting that the bid was "highly opportunistic," and made in an attempt to take advantage of the upcoming April 29 release of Grand Theft Auto IV.

"The bid probably created fairly large internal disruption and without a severance plan, employees are worried about losing their jobs," said Janco Partners analyst Mike Hickey. "They want to keep people focused and give them some sort of support."

From The Chatty
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    March 10, 2008 12:34 PM

    While it's nice they're giving protection to their employees it definately implies they're preparing for a fight.

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      March 10, 2008 12:57 PM

      does that mean EA will make a hostile takeover?

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        March 10, 2008 1:05 PM

        I think this is a move to try and preempt a hostile takeover but I think it depends on how hungry EA is. The fact they went public with the offer suggests they're willing to go with a hostile takeover but I doubt EA wants to hold all the non-studio employees for a year and a half.

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          March 10, 2008 1:23 PM

          I heard on X-Play on G4TV that Take Two wants to remain independent... so this kinda does skew things. It looks like either A) They're trying to stave off any kind of takeover or making it more open to do so, but on their terms.

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            March 10, 2008 1:50 PM

            or trying to keep their employees' minds at ease

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      March 10, 2008 2:18 PM

      I think it might be a disincentive for EA to just come in and clean house. The employee contracts have added these terms and if EA takes over the company they inherit the terms?? Though.. Why not put in your employee contracts..

      If EA buys us everyone gets a Ferrari.

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