EA drops bid for Take Two

Third time is apparently not a charm for the gaming franchise giant.

Electronic Arts yesterday declared ‘game over’ on its plans to buy out its game making competitor, Take-Two Interactive Software, abandoning its seven month, somewhat hostile, bid.

EA, which recently launched mega games Spore and Rock band, announced in a statement yesterday that despite a continued “high regard for Take-Two's creative teams and products” it would be dropping attempts to take it over after reviewing TT’s financial materials and hearing presentations from its management. This, despite a Federal Trade Commission ruling in August declaring it wouldn’t oppose a deal between the two firms.

Back in February, Grand Theft Auto publisher Take-Two rejected EA’s offer of $US26 a share (about $US2bn). Things turned increasingly hostile as the unwelcome passes just kept on coming. Take-Two vociferously protested EA’s offer, claiming it undervalued the firm and also pointing out that, regardless, it had come at an incredibly bad time – just before the release of GTA4.

Then, about a month ago, EA seemed to change game strategy completely, agreeing to let its hostile tender offer to shareholders, to buy Take-Two at an even lower price, expire.

As Take-Two’s shares dropped to below $US22, EA obviously decided it wasn’t that interested after all. In response, Take-Two's chairman, Strauss Zelnick said his firm was "actively engaged in discussions with other parties".