Date: 02-27-2008
Electronic Arts Inc.’s (EA) $26 per share cash buyout offer has been rebuffed by Take-Two Interactive Software, which called the offer “inadequate.” Take-Two even accused EA of being “highly opportunistic” in trying to scoop up Take-Two just before the release of its next hit, “Grand Theft Auto IV.” Even after the $2 billion offer was rejected, shares of Take-Two soared as investors speculated on an increase in the bid. The offer and rejection came in the wake of another consolidation in the video-game sector wherein EA’s archrival Activision struck a deal with Vivendi late last year. Analysts agree, in any case, that though another EA bid might also be scoffed at, both EA and Take-Two have high-profile game releases this year, especially Take-Two’s “Grand Theft Auto IV” and EA’s “Spore,” which are expected to increase revenues drastically.
