Electronic Arts Extends Take-Two Offer Deadline, Names CFO

Authored by Mark Hefflinger on March 28, 2008 - 8:46am.

Redwood City, Calif. - After having its $2 billion buyout bid rejected, video game publisher Electronic Arts (NASD: ERTS) said on Friday that it has extended the expiration date on its offer for Take-Two Interactive (NASD: TTWO) until April 18. Take-Two has said the deal undervalues the company, and called EA's advances opportunistic, in light of the looming release of the fourth installment of its top-selling "Grand Theft Auto" franchise.

The $26 per share offer represents a 64% premium on Take-Two's closing price on Feb. 15.

"The actions of the Take-Two Board may increase the risk for their stockholders by delaying a potential transaction," said Owen Mahoney, EA's SVP of corporate development.

"We continue to believe that our $26.00 per share offer price is full and fair, and that a transaction between Take-Two and EA is the most compelling combination financially, strategically and operationally for all parties."

Separately, EA announced the appointment of Eric Brown as its new chief financial officer.

Brown was previously CFO and COO at McAfee, and before that was CFO of EA's Redwood Shores studio.