Electronic Arts drops $2 billion bid for Take-Two

Morshad published 18 Aug 2008, 19:02 in gamers - 298 views

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Redwood City game developer Electronic Arts today withdrew its $2 billion hostile bid for Take-Two Interactive Software, saying it could not acquire Take-Two's video games in time for the holiday market.

"We no longer believe we can integrate Take-Two ahead of the important holiday season,'' Electronic Art's Chief Executive, John Riccitiello, said in a letter to Take-Two's Executive Chairman, Strauss Zelnick,

As as result, Riccitiello said his $25.74 per share offer for New York-based Take-Two, creator of the Grand Theft Auto video-game series, would expire at midnight East Coast time.

Nonetheless, the two companies left open the possibility that a marriage still might be possible.

"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,'' Riccitiello noted in his letter.

In a news release that included Riccitiello's letter, the company noted that the Federal Trade Commission is scheduled to complete its antitrust review of the proposed deal by Thursday.

"EA remains confident that antitrust issues will not prevent or delay a transaction," the press release said.

Take-Two also signaled its willingness to negotiate a sale, by agreeing to let Electronic Arts review some of its confidential business data. That includes "information relating to our three year product release schedule and management's financial projections,"

according to a letter from Zelnick to Riccitiello, which Electronic Arts included in its press release .

Take-Two confirmed in its own news release today that it would let Electronic Arts look over its confidential business data, saying the information should demonstrate "the significant strides made by Take-Two" over the last year.

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