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Two of the world's most famous video games developers were yesterday in a tense stand-off over a potential merger deal that would bring the Grand Theft Auto series under the same roof as The Sims and Fifa soccer titles.
Take-Two Interactive, whose delayed Grand Theft Auto IV is set for release in the spring, rejected a US$2 billion ($2.47 billion) offer from larger rival Electronic Arts (EA), calling it inadequate, but investors were betting that the company would succumb to a takeover at a slightly higher price.
EA publicly revealed its offer on Sunday, to appeal directly to Take-Two shareholders and put pressure on the board to change its mind. "It is our objective to make this a friendly deal," said EA's chief financial officer, Warren Jenson . " ... We would love to sit down with Take-Two management and the board of directors and complete a transaction."
EA is trying to bolster its portfolio of blockbuster games in the face of a consolidating video games industry. Vivendi Games, its rival which owns World of Warcraft, is merging its gaming business with Activision, makers of Guitar Hero.
Citigroup analyst Brent Thill said: "We believe EA views Take-Two as a strategic asset and may be willing to pay slightly, but not materially, higher than its current offer. The industry is entering the heart of the console cycle and Electronic Arts can more profitably participate in expected strong industry growth by increasing its percentage of revenue from owned intellectual property, with the addition of franchises such as Grand Theft Auto and BioShock." Take-Two said it opposed a sale so close to the launch of a major new title.
- INDEPENDENT
