As you may know, for the past six months or so, a little company called Electronic Arts has been trying to acquire another little company, Take-Two (parent of 2K Games and Rockstar Games, for those of you playing at home). It's been a fairly lengthy, drawn-out saga that started friendly, got hostile, seemed to be friendly again, extended a few deadlines, and - as of today - looks like it's all over, and not in the way you might expect.

EA have made statements to the press, stating that "after careful consideration", the publishers have decided to drop their proposal, terminating take-over discussions.

Take-Two have responded, mentioning that they are "actively engaged" in discussions with other parties, and are considering "strategic alternatives".

EA explain that after a long, drawn-out process - "including a management presentation and review of other due diligence materials provided by Take-Two Interactive Software Inc.", they have decided not to make a proposal.

John Riccitiello, Chief Executive Officer of EA, changes the subject:

"EA is tracking toward a record breaking year. We're launching 15 new games including award-winners like SPORE, Dead Space and Mirror's Edge, great new titles from the Sims, new family titles with Hasbro, and the highest quality slate of EA SPORTS titles on this generation of consoles. We're also expanding beyond our core business with a series of direct-to-consumer launches including Warhammer Online."

Strauss Zelnick, Chairman of the Board of Take-Two, commented:

"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."

Ben Feder, Chief Executive Officer of Take-Two observes also:

"Take-Two's business has continued to strengthen since the time EA first made its offer. We have delivered terrific products to our consumers and we've been rewarded with very strong financial performance. We have an exciting future ahead of us, powered by our profitability, a significant cash position, the absence of debt, an undrawn credit facility and a terrific lineup of games. We are confident in the unique value of our business given our strong position in what is a growing and dynamic industry."

The EA bid has been plagued with controversy, with stock prices fluctuating, stock-holder loyalties wavering, poor Grand Theft Auto IV sales blamed for "complicating" the merger, and the whole carryon taken behind closed doors back in August.

Where to now for either company? ...only time will tell.

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Thanks to Jeatalong for submitting this news!
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