Electronic Arts Again Extends Deadline on Take-Two Offer

Authored by Mark Hefflinger on May 19, 2008 - 10:48am.

New York - Take-Two Interactive (NASD: TTWO) said on Monday that, despite fellow game publisher Electronic Arts' (NASD: ERTS) third extension of its unsolicited bid to acquire the company, it is still opposed to the "highly conditional offer" that "fails to compensate our stockholders for our exceptional portfolio of intellectual property, world-class creative resources, and our successful revitalization initiatives," CEO Ben Feder said in a statement.

Electronic Arts said that only around 8% of the company's shares had been tendered in favor of its last offer, which expired on Friday.

From the beginning, Take-Two has said the $2 billion offer undervalues the company, and was opportunistic in the wake of the release of its blockbuster "Grand Theft Auto IV" game.

"The Board is committed to maximizing stockholder value and is exploring all strategic alternatives to do so," said Take-Two chairman Strauss Zelnick.

"We said we were willing to begin formal discussions with interested parties on April 30, following the launch of Grand Theft Auto IV, and we have in fact begun that process.

"We are confident in the significant growth potential of Take-Two and in the unique value of our business given our strong position in this growing and dynamic industry."

With the extension, EA's offer now remains on the table until June 16.