EA's acquisition bid for Take-Two expires

Friday deadline for game maker's reduced-and-extended offer, rejected last month, passes without action shortly after record-breaking release of Grand Theft Auto IV.

Electronic Arts' hostile bid for Grand Theft Auto producer Take-Two Interactive appears to have ended quietly this week.

Grand Theft Auto IV
Shortly after EA failed to make an attractive-enough offer, Take-Two's Grand Theft Auto IV shattered all-time launch sales records, lending support to Chairman Zelnick's argument that the bid undervalued the company. Rockstar Games

The game maker, whose reduced acquisition bid of $25.74 a share was rejected as inadequate last month, had set Friday as the extended deadline for it to buy up Take-Two's shares. The day came and went without action regarding the takeover from either company.

The updated offer, rejected by Take-Two on April 18, continued to be inadequate and undesirable, according to Chairman Strauss Zelnick at the time. "It undervalued the company at $26 per share, and it certainly undervalues Take-Two at $25.74."

Since then, the record-breaking launch of Grand Theft Auto IV has likely proven Zelnick correct, with first-week sales of $500 million. The game sold 3.6 million copies its first day on the market, shattering the previous all-time launch sales record held by Microsoft's Halo 3.

Take-Two shares were priced slightly above $27 in after-hours trading Saturday morning.

"There is nothing going on right now," Take-Two spokeswoman Meg Maise told AFP on Friday afternoon. "It is in (EA's) court."

 

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