Strauss Zelnick speaks on EA's takeover attempt

I have a big story in tomorrow's Daily Variety detailing all the machinations in the EA/Take-Two battle today, which I hope you'll read if you're interested in what I think is the most important news in the media business so far this year.

But I thought Cut Scene readers would be interested in more of what Take-Two executive chairman Strauss Zelnick had to say when I interviewed him today. So here's the full transcript, or at least the on-the-record parts. Topics Mr. Zelnick didn't want to discuss publicly included EA's attempt to buy Take-Two last year and whether he has been approached by other potential buyers recently.

On how he views EA's going public with its acquisition offer for Take-Two after it was rejected by the board:

This isn't personal. It's business. I think both parties are conducting themselves in accordance with their own strategic goals and in accordance with what good governance demands.

Does the offer to re-start talks with EA on April 30 (the day after "Grand Theft Auto IV" comes out) after EA's move today?

The timing of this deal is wrong and the value remains insufficient... The timing is out of our control now that it's in the public eye, but the fact remains that the value is woefully inadequate. Of course, as a public company one has an obligation to talk to legitimate interested parties at any time, but one the offer goes public, the tenor changes. We've seen what is on the table and we have already rejected it. There's not much else for us to do right now but listen to our shareholders and the market.

Have you talked to major institutional shareholders about the offer?

Off the record only.

On EA's assertion that global scale in the videogame business is imperative and Take-Two doesn't have it:

Historically, that's more or less case. But we have have made strides and reduced costs. We significantly cleaned up our operations. We put in place strong financing. We have hits other than "GTA." "Bioshock" sold over 2 million units. "Carnival Games" sold over one million. We are proud of those achievements and we are ready to achieve plenty more.

Is the consolidation of smaller publishers like yours inevitable in the near-term?

I have said before that I see consolidation occurring. There are two times when consolidation typically occurs: When an industry is growing rapidly or declining. We're growing and so I do believe we'll see continues consolidation. But we are a very strong company. This isn't about majors vs. independents. Take-Two is hardly a boutique firm.

EA says this is the perfect time to go ahead with an acquisition deal because development and marketing and distribution plans for "GTA IV" must be almost done and are at this point "essentially mechanical." Do you agree?

We are in charge of our own business. No one else. The release is two months away and that's what we need to be focusing on. It's not fully baked and ready to go with the push of a button. To present it as such is a little naive.