GamesBeat

EA and Take-Two give up on merger talks

After taking a good peak inside the kimono of Take-Two Interactive, Electronic Arts has decided to turn its back on its six-month effort to buy the publisher of “Grand Theft Auto IV.”

EA said in a statement that it had high regard of Take-Two but after reviewing Take-Two’s management presentation on its future plans and other due diligence materials, it decided not to acquire Take-Two. EA had previously offered $2 billion to buy Take-Two.

Take-Two said in a statement that it remains actively engaged in other discussions about its strategic alternatives. Take-Two, which has sold more than 10 million copies of GTA IV, said that its business has expanded during the takeover battle.

This deal was mainly about coming to terms on the value of the GTA franchise and Take-Two’s upcoming games. Take-Two has outperformed analyst expectations, but GTA IV has not exceeded the wildest expectations for sales. That is probably why the pair couldn’t agree on price. Take-Two has always wanted a significant premium on its stock, while EA didn’t want to over-pay.

Now EA’s strategy of the past 18 months is going to get its test. The company has launched “Spore” and has a total of 15 new games coming in the next six months. If those games are hits, John Riccitiello, chief executive of EA, will look like a hero. Take-Two, meanwhile, has to start launching games that show it’s more than a one-trick pony.


Mobile developer or publisher? VentureBeat is studying mobile marketing automation. Fill out our 5-minute survey, and we'll share the data with you.

GamesBeat is your source for gaming news and reviews. But it's also home to the best articles from gamers, developers, and other folks outside of the traditional press. Register or log in to join our community of writers. You can even make a few bucks publishing stories here! Learn more.

You are now an esteemed member of the GamesBeat community. That means you can comment on stories or post your own to GB Unfiltered (look for the "New Post" link by mousing over your name in the red bar up top). But first, why don't you fill out your via your ?

About GamesBeat