EA walks away from Take-Two wrangle

GTA developer fends off hostile bid

16 September 2008 15:58 GMT / By Katie Scott

EA has finally given up after months of chasing Grand Theft Auto developer, Take-Two.

The gaming giant had offered $2 billion for its rival, but its offer was not accepted by the extended deadline of 16 June.

Take-Two had been fighting the hostile bid, cajooling its shareholders against tendering their shares, labelling EA's offer as unsuitable and claiming it "undervalued" the company.

Take-Two pointed to the massive success of Grand Theft Auto IV and also that fact that its game, BioShock, is going to be made into a film by Universal Pictures.

But now EA has given up, and has announced it's not going to negotiate anymore.

In a brief statement, it said: "After careful consideration, including a management presentation and review of other due diligence materials provided by Take-Two Interactive Software Inc, EA has decided not to make a proposal to acquire Take-Two and has terminated discussions with Take-Two".

It added: "EA continues to have a high regard for Take-Two's creative teams and products".

Strauss Zelnick, Take-Two's chairman, then released his own statement saying: "We remain focused on creating value for our stockholders and our consumers".

"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."

"As part of that commitment, we remain actively engaged in discussions with other parties in the context of our formal process to consider strategic alternatives."

Take-Two's stock has taken a hit following the announcement, dropping nearly 30% in trading on Monday.