Electronic Arts (EA) will not acquire rival Take-Two for another one and a half months at least, as part of an agreement with the Federal Trade Commission (FTC), which is probing the takeover.
EA has agreed not to buy Take-Two until the FTC finishes its investigation, or, alternatively, 45 days after EA has complied with the FTC’s information request. Last month EA extended its USD2bn bid until Jun 16, in an effort to attract more Take-Two shareholders under the offer and allow more time for the FTC’s investigation. However, Take-Two’s board rejected the bid as “inadequate”. EA is offering USD25.74 per Take-Two share, or nearly 5% less than the Take-Two stock price on the day the offer was rejected. Meanwhile, Take-Two’s share price has risen and closed at USD27.39 on Wednesday, Jun 5.
This is the third time EA postpones the deadline for the takeover of Take-Two since the offer was first submitted in Apr. Meanwhile, EA has acquired social gaming startup ThreeSF and the South Korean branch of Hands-On Mobile