to join the CVG community. Not a member yet? Join now!

EA cans Take-Two deal

Acquisition talks terminated...

About six months after the initial proposition, Electronic Arts said Sunday that it has terminated acquisition talks with Grand Theft Auto maker Take-Two.

A press statement from EA said the decision came following Take-Two's previously-announced management presentation and "review of other due diligence materials provided by [Take-Two]."

EA CEO John Riccitiello said, "EA is tracking toward a record breaking year. We're launching 15 new games including award-winners like Spore, Dead Space and Mirror's Edge, great new titles from the Sims, new family titles with Hasbro, and the highest quality slate of EA SPORTS titles on this generation of consoles.

"We're also expanding beyond our core business with a series of direct-to-consumer launches including Warhammer Online."

EA had extended the offering five times before entering friendly talks with Take-Two. Execs with Take-Two had repeatedly called EA's offer of $25.74 per share "inadequate."

Take-Two chair Strauss Zelnick responded, "We remain focused on creating value for our stockholders and our consumers. This has been our goal since EA launched its conditional and unsolicited bid six months ago, a bid which was repeatedly rejected by our stockholders.

"As part of that commitment, we remain actively engaged in discussions with other parties in the context of our formal process to consider strategic alternatives. We're especially proud of the success we've enjoyed over the past 18 months and we remain confident in our ability to generate value for stockholders."

Take-Two CEO Ben Feder added, "We are confident in the unique value of our business given our strong position in what is a growing and dynamic industry."

Games analysts were largely convinced that the deal would go through.

Article supplied by Edge-Online