EA drops hostile $2 billion takeover bid of Take-two

After seven months of attempting to take over Take-Two, the publisher of super-popular franchise Grand Theft Auto, EA has finally dropped the bid.

It started out with friendly offers of $25 per share, which then became $26 per share, and went back down to $25.74 per share. The bid became hostile after several rejections by Take-Two as being too low, until last month when they went into private discussion.

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

This is quite a bit late, considering their original deadline was some time in February. After many extensions of the deadline, it seems they've finally given up. GTA 4 had $500 million in sales in its first week, which was a quarter of what EA was offering. Plus, Take-Two had also signed an agreement with Universal pictures to have Bio-Shock turned into a movie when EA was offering. I think Take-Two can survive easily without EA, and the fact that they're remained resilient even now, shows that they're not just some pushover.

It was in August that the two companies held private talks, which was also when the FFC decided to investigate into a possible merger. They then said no further action was necessary.

To EA, $2 billion just isn't enough, and right now, Take-Two is looking at a lot of growth without EA's money. There's no real reason to let EA buy take-Two.

Tags: Games, EA, Take-Two, Grand theft Auto, electronic Arts, BlitzTech Blog

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