We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
78,613 News Articles

EA gives up on $2bn deal for GTA IV publisher

Bid expires, but acquisition discussions continue

Electronic Arts has dropped its $2bn bid to acquire the publisher of the popular Grand Theft Auto game title.

EA originally offered $26 per share for Take-Two Interactive Software back in February, a deal Take-Two rejected as too low. Later, EA made a tender offer directly to Take-Two shareholders at a lower price of $25.74 per share.

But the potential remains for a new offer.

EA accepted a proposal by Take-Two to hear a presentation aimed at explaining why Take-Two believes EA's bids undervalue the company.
Take-Two will present a three-year product release schedule and financial projections, as well as discuss other underlying factors that drive the company, Take-Two said in a statement.

Take-Two reiterated that it remains in discussions with parties other than EA as well. The company has not divulged specifically who it is in talks with nor about what kind of deal.

In a letter to the head of Take-Two published on EA's website, EA CEO John Riccitiello signalled EA isn't very happy about the timing of the deal.
With the expiry of the tender offer, "we no longer believe we can integrate Take-Two ahead of the important holiday season", he said, noting EA will have to re-evaluate its position.

See also:

Grand Theft Auto IV review


IDG UK Sites

O2 to sell exclusive red HTC One M8

IDG UK Sites

iTunes 12 release date & rumours: When is iTunes 12 coming out?

IDG UK Sites

Welcome to the upgrade cycle - you'll never leave

IDG UK Sites

Why smartphone screens are getting bigger