Monday, February 25, 2008
Electronic Arts Inc. (Madden NFL) announcced an unsolicited $2 billion cash offer for Take-Two Interactive Software (Grand Theft Auto), after Take-Two's board rejected the $26 per share offer (50% premium over Friday's closing price) as inadequate. The offer comes about two months before Take-Two will ship Grand Theft Auto IV, a hghly anticipated game. Take-Two's Chairman said the offer was "opportunistic" and "woefully undervalued." Take-Two has had new management since a dissident group of shareholders voted in a new board last March. Under its former management, Take-Two had legal problems relating from both stock options backdating and accounting fraud. WSJ, Electronic Arts Offers $2 Billion for Take-Two; NYTimes, Game Maker in $2 Billion Bid for Rival.