EA drops $2 billion bid to acquire Take-Two
Electronic Arts has abandoned its $2 billion bid to acquire rival game maker Take-Two Interactive Software, ending a seven-month takeover effort that turned hostile before the two companies entered private talks last month.
"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.
The announcement brings to a close EA's long-running, but oft-rebuffed, effort to acquire Take-Two.
EA took its buyout offer public for the publisher of the wildly popular Grand Theft Auto franchise in February at $26 a share after Take-Two spurned an earlier attempt at a friendly takeover at $25 a share. Take-Two rejected the $26 offer as too low, and EA launched its hostile bid in March. EA subsequently reduced the offer to $25.74 a share. But repeated extensions and offer revisions seemed to hurt the company's credibility.
EA dropped its hostile bid in August after the two companies agreed to hold private talks about a potential transaction. A few days later, the Federal Trade Commission said it had conducted an investigation of a merger of the companies, but said no further action was required and closed the investigation.
Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers. E-mail Steven.
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EA, of course, found such a restriction to be draconian and refused to abide by TakeTwo's demands.
And they wanted them to sign an EULA saying that they are not entitled to actually own anything. just have limited use.
I mean take the differences in Madden 08 and 09. There are a ton, and for the most part I think the game is better for it. You see the fact is they don't have a monopoly, because at the end of the contract with the NFL if the NFL isn't happy their not getting the contract back, so EA really does have to work to improve their games.
Even when you leave the sports arena EA still competes heavily for game of the year awards in a heavily saturated market. They may be the largest and strongest game studio, but you can't hate them for that.