Electronic Arts drops pursuit of Take-Two

EA is giving up on its attempt to acquire rival Take-Two Interactive.

Electronic Arts is giving up plans to acquire rival computer games software company Take-Two Interactive and has terminated merger discussions with the company, it said Sunday.

The decision was made "after careful consideration, including a management presentation and review of other due diligence materials," Electronic Arts (EA) said in a brief statement.

EA, which owns some of the most popular sports games franchises in the industry, originally offered US$2 billion for Take-Two in February of this year. At the time Take-Two was preparing to release "Grand Theft Auto IV," the latest in its popular game series, and rejected EA's bid as "inadequate in multiple respects."

In August, EA let its tender offer for Take-Two expire, but the company remained interested in an acquisition. It accepted an offer by Take-Two to hear a presentation from the company explaining why it thinks EA's bid undervalues it.

The decision to walk away from acquisition talks apparently reflects in part what EA heard in that presentation.

But EA's decision doesn't mean that Take-Two won't be getting swallowed up by another games maker anytime soon.

The company, "remain[s] actively engaged in discussions with other parties in the context of our formal process to consider strategic alternatives," Take-Two Chairman Strauss Zelnick said in a statement issued in response to EA's announcement. "We remain focused on creating value for our stockholders and our consumers."

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags games

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?