EA Ends Merger Negotiations with Take-Two

After all that fuss earlier this year, EA's takeover bid of Take-Two is officially over.
By Kris Pigna,

Finally ending the on-again, off-again story that has enthralled (right?) the gaming industry all year, Electronics Arts announced today that they've officially ended merger negotiations with Take-Two. So much for Grand Theft Auto 4's supposedly sagging sales complicating the matter, huh?

"Electronic Arts Inc. today announced that while EA continues to have a high regard for Take-Two's creative teams and products, after careful consideration, including a management presentation and review of other due diligence materials provided by Take-Two Interactive Software Inc., EA has decided not to make a proposal to acquire Take-Two and has terminated discussions with Take-Two."
So reads EA's announcement, in which CEO John Riccitiello goes on to taut a number of games EA is launching later this year. This announcement was followed by a response from Take-Two, in which chairman Strauss Zelnick said his company will continue to pursue potential "strategic alternatives" with other parties.

"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," Zelnick said. "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."

This whole shindig first started back in February, when Electronic Arts proposed an estimated $2 billion offer to purchase Take-Two. Take-Two rejected this offer, stating it undervalued their company, and so it went for the rest of the year, with additional offers being subsequently refused until the companies took their negotiations behind closed doors in August. Clearly, things didn't go much more smoothly in private.

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