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."

Featured Video

Twitter flips order of some tweets, users flip out

Changes to Twitter's timeline could make the social network more appetizing to some -- and confusing to others. Meanwhile, LG teases an "always-on" screen for the G5 phone.

by Bridget Carey