EA tries to buy Take-Two for 2 Billion Cash
In a startling bit of news, Electronic Arts announced Sunday morning that it has launched an uninvited bid to buy Grand Theft Auto video game franchise publisher Take-Two Interactive Software for $26 a share, or what could be a $2 billion deal.
And while EA, in its press release, did not make any reference to Vivendi's December agreement to purchase Activision, there can be no doubt that this is the response EA had to make to keep its spot as the undisputed heavyweight champion of the video games business.
The announcement comes on the heels of what appears to be a spurned attempt at a friendly takeover of Take-Two at $25 a share. The announcement release included the text of a letter sent to Take-Two Executive Chairman Strauss Zelnick by EA CEO John Riccitiello.
"Dear Strauss," Riccitiello wrote in the February 19 letter, "I am disappointed that you have rejected Electronic Arts' $25 per share cash offer to acquire Take-Two Interactive Software...and declined to engage in the friendly negotiations we proposed. We continue to believe that an acquisition of Take-Two by EA is in the best interests of your shareholders, employees and other constituents, and we remain interested in acquiring Take-Two. So to further demonstrate our seriousness and encourage you to move forward now, I am writing to increase EA's offer to acquire all of the outstanding shares of Take-Two to $26 per share in cash."
EA will hold a conference call Monday morning to discuss the Take-Two offer.
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