EA drops bid for 'Grand Theft Auto' maker Take-Two
Time is GMT + 8 hours Posted: 15-Sep-2008 06:05 hrs
This image shows a scene from the video game "Grand Theft Auto: San Andreas." US video game giant Electronic Arts announced Sunday it was ending a bitter seven-month battle to acquire "Grand Theft Auto" maker Take-Two Interactive.
US video game giant Electronic Arts announced Sunday it was ending a bitter seven-month battle to acquire "Grand Theft Auto" maker Take-Two Interactive.
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"While EA continues to have a high regard for Take-Two's creative teams and products, after careful consideration, including a management presentation and review of other due diligence materials ... EA has decided not to make a proposal to acquire Take-Two and has terminated discussions with Take-Two," the California firm said in a statement.
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The announcement ended months of wrangling over the two video game giants that began with a hostile EA bid in February that later morphed into friendly takeover discussions.
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EA let pass an August 18 deadline on an offer to buy Take-Two stock at a price of 25.74 dollars per share, and the firms entered into "confidential" discussions in which Take-Two is to argue that it is worth more money.
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The US Federal Trade Commission last month ended its review of a potential tie-up between EA and Take-Two, clearing away a regulatory hurdle to such a deal.
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Since Take-Two first rejected EA's offer in February, the takeover target has released hot-selling "Grand Theft Auto IV" and announced a deal to make a film based on its popular "Bioshock" videogame.
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Take-Two has been touting new titles slated for release in the coming year.
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"We remain focused on creating value for our stockholders and our consumers," Strauss Zelnick, chairman of New York-based Take-Two, said after the EA announcement.
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"This has been our goal since EA launched its conditional and unsolicited bid six months ago, a bid which was repeatedly rejected by our stockholders."
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He added that the company is "actively engaged in discussions with other parties in the context of our formal process to consider strategic alternatives."
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EA, the world's largest video game maker, had been trying to get its hands on GTA, one of the most popular computer games on the market, but also among the most controversial because of its violent nature in which players score points with acts such as carjacking and killing prostitutes or police officers. — AFP
