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Monday, August 18, 2008
EA Discontinues Pursuit of Take-Two
Ken Sweet
FOXBusiness
The six-month drama between video game makers Electronic Arts and Take-Two Interactive came to a close Monday morning when EA said it would discontinue its pursuit to purchase Take-Two for $2 billion.
EA (ERTS) said it would no longer extend its offer to Take-Two (TTWO), saying if the companies were now to merge it would come too late to integrate before the holiday shopping season. EA also said it would have “reevaluate” its current offer price for Take-Two, if it were to re-bid for the company next year.
The announcement came via a letter from EA’s Chief Executive Officer John Riccitiello to Take-Two’s Chairman Strauss Zelnick.
EA, maker of the popular Madden football games, offered to purchase Take-Two, which produces the Grand Theft Auto series, for $2 billion back in late February.
Take-Two has repeatedly rejected EA’s $2 billion offer saying the amount was too low. Take-Two makes the vast majority of its income off of one game, compared to EA’s fairly diverse product catalogue.
Shares of Take-Two were down 6% in early market trading.
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