Bizarre timing of the announcement today that Warren Jenson will leave Electronic Arts (ERTS) as chief financial officer, considering that the company is in the midst of trying to do a hostile takeover of Take-Two (TTWO).
Electronic Arts gave no reason for his departure, but this much is clear: It doesn’t speak well for the acquisition strategy.
One of the concerns about acquiring Take-Two, which has a history of controversy and is embroiled in multiple regulatory investigations, has been that if acquired it could do to Electronic Arts what the likes of The Learning Company did for Mattel (MAT): Long a favorite of short-sellers, The Learning Company imploded once part of Mattel, almost sinking Mattel in the process.
Does Jenson’s departure suggest he doesn’t agree with the strategy of buying Take-Two? Is he trying to avoid being the scapegoat? Does it get any stranger than this?
The beat goes on….