Take-Two garners more takeover interest after EA bid

by Dan Nystedt

February 29, 2008 —

The publisher of the popular Grand Theft Auto video game series has received more
takeover interest after its $2 billion offer from Electronic Arts (EA), the
company said Thursday.

Take-Two Interactive Software has received "informal indications of interest
in a business combination," but no formal written offer in the time since
EA
issued a news release outlining its intention to buy the company, Take-Two
said in a filing to the U.S. Securities and Exchange Commission.

Take-Two rejected the EA offer as too low, but remained open to discussions
with the company. Take-Two wants to wait until after the release of the fourth
installment of Grand Theft Auto in April.

The video game industry has started to see some consolidation recently as bigger
companies seek to acquire popular game titles. Last December, Activision and
Vivendi
Games announced a proposed US$18.9 billion merger. Such a deal would put
mega-hit World of Warcraft as well as Diablo and Starcraft in the same company
as Guitar Hero and Call of Duty. The new company will be called Activision Blizzard
once the deal is finalized.

A deal between EA and Take-Two would combine EA's popular sports titles such
as Madden NFL 08 and games like the Sims and Battlefield 2, with Take-Two's
Grand Theft Auto series and other titles.

Take-Two will hold its annual meeting for investors on April 10, 2008 in New
York to further discuss merger and acquisition possibilities as well as other
issues.

IDG News Service