With FTC approval in place, the ever-rejected tender offer dropped and friendly negotiation finally underway, it seemed that all the hurdles had been cleared for game software giant Electronic Arts to acquire Take-Two Interactive. But it appears that this time, it was EA’s turn to walk away from the bargaining table.
Today, EA issued the following statement:
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 provided by [Take-Two], EA has decided not to make a proposal to acquire Take-Two and has terminated discussions with Take-Two.
Take-Two chairman Strauss Zelnick issued the following formal reply:
We remain focused on creating value for our stockholders and our consumers. This has been our goal since EA launched its conditional and unsolicited bid six months ago, a bid which was repeatedly rejected by our stockholders. As part of that commitment, we remain actively engaged in discussions with other parties in the context of our formal process to consider strategic alternatives. We’re especially proud of the success we’ve enjoyed over the past eighteen months and we remain confident in our ability to generate value for stockholders.
Is this the end of an era? Or, as analyst Michael Pachter advises the Associated Press, might we be right back to square one?
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