EA revises Take-Two acquisition offer, again

The takeover saga between the two video game manufacturers isn't over yet, with EA giving Take-Two a new deadline of Monday night.

Caroline McCarthy Former Staff writer, CNET News
Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos.
Caroline McCarthy

Spore isn't the only thing on Electronic Arts' mind. The company still wants Take-Two Interactive.

On Monday, CEO John Riccitiello sent an open letter to Take-Two chairman Strauss Zelnick saying that EA's existing offer to acquire the smaller game manufacturer for $25.74 per share would officially expire just before midnight Eastern time on Monday. It sounds like EA is simply losing patience.

"Given the passage of time, we have to validate the assumptions used in the model to support our offer price of $25.74 per share in cash," Riccitiello's letter read. "In addition, we no longer believe we can integrate Take-Two ahead of the important holiday season."

Over the weekend, the two had discussed the prospect of Take-Two providing a non-public management presentation to EA concerning the company's internal perception of its own value. Zelnick agreed to that, under the condition that EA would enter a confidentiality agreement.

EA originally offered to buy Take-Two in February, almost certainly a response to Vivendi's acquisition of Activision late last year. With Take-Two absorbed, EA would retain its spot as the biggest video game manufacturer.

That original hostile $2 billion offer has already expired. And expired again.