EA and Take-Two hold private merger talks

Posted on 26 Aug 2008 at 12:15

Video game developers Electronics Arts (EA) and Take-Two have admitted the two are holding private talks about a potential merger. EA had been pursuing a hostile takeover of its rival, but with its latest bid rejected, has now agreed to hold private discussions with the company.

Take-Two, which produced popular games such as BioShock, Bully and the Grand Theft Auto series, recently rejected a £1 billion bid from EA. It has now however, agreed to spell out its three year product plans to its rival - which produces the Madden, Need for Speed and FIFA Soccer games - on the condition that the talks are held in private.

"As a result, EA does not intend to make any further announcements regarding the status of any discussions or negotiations with Take-Two unless and until discussions between EA and Take-Two have been terminated or such parties have entered into a transaction," said EA in a regulatory filing with the US Securities and Exchange Commission.

The potential merger received a major boost last week when US antitrust authorities published two letters to say that they would approve the two games developers merging.

"Upon further review of this matter, it now appears that no additional action by the commission is warranted at this time. Accordingly, the investigation has been closed," said the letters from the US Federal Trade Commission.

Author: Dawinderpal Sahota

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