GameStop Reorganization!

GRAPEVINE, Texas--(BUSINESS WIRE)--Today, the Board of Directors for GameStop Corp. (NYSE: GME) approved a reorganization of the senior management structure in light of the company’s tremendous growth, impressive continued worldwide brand expansion and powerful operating metrics that has strategically catapulted the organization into 16 countries with 5,557 stores.

R. Richard Fontaine, 66, GameStop’s Chairman and CEO since the company’s inception in 1996, will concentrate his focus on international operations, acquisition opportunities and strategic development as Executive Chairman. He will relinquish his CEO role to Daniel A. DeMatteo, 60, who has been the COO since 1996 and Vice Chairman and COO since 2004.

In addition, J. Paul Raines, 44, the former Executive Vice President of U.S. Stores for Home Depot, will become the company’s new COO, effective Sept. 7, 2008.

GameStop’s senior executive team will continue to include 12-year company veteran David W. Carlson, 45, as EVP and CFO and Tony D. Bartel as EVP of merchandising and marketing, 44, who joined the company in 2005.

“Dan and I have worked together for over 12 years, and with an outstanding team of leaders, we have built GameStop into one of the fastest-growing and most successful specialty retailers worldwide,” said Fontaine. “Dan’s move into the CEO role will assure the continuity of performance that has been a GameStop hallmark. His leadership, drive and insight into the videogame business and its huge upside potential make him the obvious choice as CEO.”

“These moves are a natural evolution of our growth and potential, and I am excited about this opportunity,” indicated DeMatteo. “We are also extremely pleased to have Paul Raines join our executive team as COO. He brings a wealth of retail operations expertise and has an impressive track-record with executing strategies to support the customer experience and drive positive results. We’re fortunate to have such a high caliber retail executive join GameStop.”

Prior to joining GameStop, Raines spent eight years with Home Depot in various management positions in retail operations, including serving as EVP for U.S. Stores and President of the Southern Division of the Atlanta-based company. Raines was responsible for more than 2,000 stores and $70 billion in sales activity. He also has extensive international expertise covering Latin America, Asia and Europe. Prior to Home Depot, he spent four years in global sourcing for L.L. Bean and 10 years with Kurt Salmon Associates in their consumer products group. In all, Raines brings more than 22 years of senior level experience in corporate management to the COO position.

“The opportunity to help lead the GameStop team is truly energizing and a privilege,” Raines said. “I’m excited to be joining a vibrant company in a booming growth industry and be surrounded by such a committed group of executives.”

Tags: Game News, Game Business, Gamestop

Electronic Arts Inc.'s Update On Take-Two Interactive Software Inc. Acquisition Offer.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Aug. 18, 2008--Electronic Arts Inc. ("EA") (NASDAQ:ERTS) today issued an update on its offer to acquire Take-Two Interactive Software Inc. ("Take-Two") (NASDAQ:TTWO).

On Friday August 15, John Riccitiello, Chief Executive Officer of EA, called Strauss Zelnick, Executive Chairman of the Board of Directors of Take-Two, to discuss EA's offer to acquire Take-Two. Following discussions over the weekend between EA and Take-Two, EA accepted Take-Two's offer to provide a management presentation to EA containing non-public information. The letters between the parties are set forth below.

EA also announced that it will allow its tender offer for all of the currently outstanding shares of common stock (including the associated preferred stock purchase rights) of Take-Two to expire on Monday, August 18, 2008 at 11:59 p.m., New York City time.

As previously reported, the Federal Trade Commission is scheduled to complete its antitrust review of the proposed transaction by August 21. EA remains confident that antitrust issues will not prevent or delay a transaction.

Below is the text of the letter sent today by Mr. Riccitiello to Mr. Zelnick:

August 18, 2008

Mr. Strauss Zelnick
Executive Chairman of the Board of Directors
Take-Two Interactive Software, Inc.
622 Broadway
New York, NY 10012

Dear Strauss:

Thank you for taking my call on Friday and for your response letter on August 17, 2008.

As discussed on Friday, given the passage of time, we have to validate the assumptions used in the model to support our offer price of $25.74 per share in cash. In addition, we no longer believe we can integrate Take-Two ahead of the important holiday season. Accordingly, we require due diligence to support a transaction and are therefore letting the tender offer expire tonight. However, we are pleased to accept your offer to review your management presentation as outlined in your letter.

We continue to have great respect for Take-Two's creative teams and products and are hopeful that we can work together to reach a mutually agreed transaction.

Sincerely,

/s/ John Riccitiello
John Riccitiello
Chief Executive Officer

Below is the text of the letter sent yesterday by Mr. Zelnick to Mr. Riccitiello:

August 17, 2008

Mr. John S. Riccitiello
Chief Executive Officer
Electronic Arts Inc.
209 Redwood Shores Parkway
Redwood City, CA 94065

Dear John:

Thank you for your recent expression of interest for Electronic Arts Inc. ("EA") to participate in Take-Two Interactive Software, Inc.'s (the "Company") formal process to evaluate the Company's strategic alternatives. As you know, we have been willing to have EA participate in this process following the successful launch of GTA IV, and we are happy to include EA now.

As I mentioned when we spoke on Friday, our process begins with an in-depth management presentation. The Company has made significant strides since EA first expressed interest in the Company and this presentation includes material non-public information to which you would not otherwise have access, including information relating to our three year product release schedule and management's financial projections. The presentation also includes information about the underlying factors that have driven our strong operational and financial performance. I believe our presentation will enable you to understand better the value of our Company to EA.

Prior to the management presentation, we will only require EA to enter into a confidentiality agreement. The agreement would be limited to provisions required to comply with federal securities laws and to ensure the Company's ability to protect the confidentiality of the information shared with you. I can assure you that this requirement is the same as or more favorable to EA than that which we have employed with all other participants in the process.

We understand that a number of months have passed since you first expressed interest in the Company and, accordingly, we will act quickly to assist you in moving through our process. Once we execute a confidentiality agreement, we are prepared to schedule the management presentation immediately.

With my best personal regards.

Sincerely,
/s/ Strauss Zelnick
Strauss Zelnick
Executive Chairman of the Board

EA's tender offer for all of the currently outstanding shares of common stock (including the associated preferred stock purchase rights) of Take-Two Interactive Software Inc. ("Take-Two") (NASDAQ:TTWO) will expire at 11:59 p.m., New York City time, on August 18, 2008.

Morgan Stanley & Co. Incorporated is acting as the Dealer Manager for the tender offer, Simpson Thacher & Bartlett LLP and Latham & Watkins are acting as legal counsel, and Georgeson Inc. is acting as Information Agent for the tender offer.

Tags: Game Business, Game News, Electronic Arts Inc, Take-Two Interactive Software

GTA IV, Email to CEO's Mother and EA Merger Talk, All Rolled In To One!

I had the pleasure of reading C|NET article on GTA IV state of the affair. Critics slamming it even without seeing the game.
"But after sifting through all these press releases, e-mails, statements, and demands that the world's retailers and parents run screaming from GTA IV, it's striking that none of the people behind these missives has seen the game, and thus couldn't possibly know its full contents."

I do not like what the game does either but I am not going to slam it. Just like I did not like the Iraq war but I did not run on the streets slamming President Bush either. I have my own way of looking at things. I would rather be playing Grand Turismo V! or Nascar '09, I am a racing or any other serious simulation game type guy!
The game is a huge financial success and all those critics either trying ride the popularity contest and make money and I like the Softpedia's take on "attorney does it again, worse than ever, twice as ugly" version by Calin Ciabai.
Then there is EA's takeover bid
One major component to the GTA saga is the game's role in the ongoing merger discussions between would-be buyer Electronic Arts and Take-Two.
All in all GTA IV should do well for the company!
The CNET article.
tag: Game Violence, Game Business, Grand Turismo V, Nascar '09, Electronic Arts, Take-Two, GTA IV, Game Critics

WeSeePeople: The Haas School of Business Technology Club, UC Berkeley Hosts the Future-M With VSC Consulting

Silicon Valley’s hottest startup entrepreneurs and students will discuss the future of media and marketing, sharing insight and internship opportunities
WeSeePeople: The Haas School of Business Technology Club, UC Berkeley Hosts the Future-M With VSC Consulting
tag: Venture People, Digital marketing communications boutique, VSC Consulting, UC Berkeley’s Haas School of Business Technology Club, Future-M, gaming, mobile, venture capital, marketing

GameStop To Acquire Free Record Shop, Norway

GameStop to Acquire 49 Free Record Locations in Norway

Global Video Game Retailer Strengthens its Nordic Market Position

GRAPEVINE, Texas--(BUSINESS WIRE)--GameStop Corp., the world's largest video game and entertainment software retailer, today announced that it has agreed to purchase 100% of the outstanding share capital of Free Record Shop Norway.

Free Record shops in Norway will be transitioned to the GameStop brand, significantly bolstering the company’s presence within the Nordic region. GameStop operates over 5,000 locations worldwide. Following the acquisition of the 49 locations, the company will operate a total of 160 locations throughout Norway, Sweden, Denmark and Finland.

R. Richard Fontaine, Chairman and Chief Executive Officer of GameStop, commented, "We are pleased to have worked with Hans Breukhoven and his entire management team at Free Record Shop to complete this acquisition. We look forward to expanding our productive business model in the Norwegian market and partnering with the knowledgeable and energetic store personnel at Free Record Shop. This transaction is another step in our strategy of bringing move video game stores to growth markets around the world."

Hans Breukhoven, Chief Executive Officer of Free Record Shop Holding, commented, ”Free Record Shop is very satisfied with this agreement and the excellent opportunity that this sale presents us to make further investments to expand and establish our retail position in the Benelux. Besides that we are very pleased that our esteemed sales staff found employment in the GameStop organization and can help them with their planned growth.”

The transaction is expected to close in early April.