EA ends plans of acquiring Take-Two Interactive
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.