Electronic Arts (EA) has formally extended its USD2bn offer for rival videogame firm Take-Two Interactive by another month.
The move marks the fifth such extension, says Take-Two, and will give US regulators time to approve a takeover. Take-Two responded by recommending shareholders not to tender their shares. To date, roughly 11.7m shares – representing 15% of Take-Two – have been tendered.
“We are fully engaged in a formal process to evaluate strategic alternatives that have the potential to deliver greater value than EA’s inadequate offer,” says Take-Two chairman Strauss Zelnick. “As part of this process, we continue to engage in meaningful discussions with multiple parties.”
Take-Two says the performance of ‘Grand Theft Auto’ this year, which generated record worldwide sales, demonstrates that Take-Two’s offer is “inadequate”. It also cites the forthcoming film spin-off of game ‘BioShock’ as proof of its future high-profit potential.
EA first made its USD25.74 per share offer for Take-Two in February. Despite Take-Two’s rejection of the offer, EA has extended its offer without upping its price. The US Federal Trade Commission is currently investigating the possible deal and is due to report its findings on August 21. The current negotiation deadline between EA and Take-Two is now set for August 18.