Posts Tagged ‘Merger’

EA Drops Deal For Take Two

September 15, 2008

Electronic Arts officially ended their bid for Take Two today saying: “While EA continues to have a high regard for Take-Two’s creative teams and products, after careful consideration, including a management presentation and review of other due diligence materials … EA has decided not to make a proposal to acquire Take-Two and has terminated discussions with Take-Two.”

EA made their $2 billion proposal back in February, and analysts, such as Wedbush Morgan’s Michael Pachter, predicted it would eventually go through. There were angry company executives and even angrier shareholders, but Take Two refused the offer. Seven months after the proposition, EA is finally dropping the offer. A major component of the merger was Take Two’s key title Grand Theft Auto IV, but by this time Electronic Arts would not be able to take advantage of the game’s expected high holiday sales.