Electronic Arts drops pursuit of Take-Two

EA is giving up on its attempt to acquire rival Take-Two Interactive.

Electronic Arts is giving up plans to acquire rival computer games software company Take-Two Interactive and has terminated merger discussions with the company, it said Sunday.

The decision was made "after careful consideration, including a management presentation and review of other due diligence materials," Electronic Arts (EA) said in a brief statement.

EA, which owns some of the most popular sports games franchises in the industry, originally offered US$2 billion for Take-Two in February of this year. At the time Take-Two was preparing to release "Grand Theft Auto IV," the latest in its popular game series, and rejected EA's bid as "inadequate in multiple respects."

In August, EA let its tender offer for Take-Two expire, but the company remained interested in an acquisition. It accepted an offer by Take-Two to hear a presentation from the company explaining why it thinks EA's bid undervalues it.

The decision to walk away from acquisition talks apparently reflects in part what EA heard in that presentation.

But EA's decision doesn't mean that Take-Two won't be getting swallowed up by another games maker anytime soon.

The company, "remain[s] actively engaged in discussions with other parties in the context of our formal process to consider strategic alternatives," Take-Two Chairman Strauss Zelnick said in a statement issued in response to EA's announcement. "We remain focused on creating value for our stockholders and our consumers."

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Topics: games
Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Compare & Save

Deals powered by WhistleOut
WhistleOut

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?