EA Maneuvers to Nab 'Grand Theft Auto'

Video game giant pushing $2B hostile bid for rival Take-Two
By Wesley Oliver,  Newser Staff
Posted Feb 25, 2008 8:08 AM CST

(Newser) – Video game kingpin Electronic Arts disclosed yesterday a $2 billion hostile takeover bid to acquire rival Take-Two Interactive Software, and capture the popular “Grand Theft Auto” franchise. EA, publisher of Madden NFL titles, said the $26-a-share offer represented a 50% premium over Take-Two’s closing price on Friday, but Take-Two’s chairman complained the offer was “woefully undervalued.”

Take-Two will release “Grand Theft Auto IV” in April, and its exec added that any takeover talks would distract the company. EA warned an independent Take-Two was ill-equipped to face the escalating costs of game development, and said its offer marks the latest sign of consolidation in the gaming business, the Wall Street Journal writes.