Connect with world renowned investors

14 - 16 April 2021

Join the event

EA pulls the plug on Take-Two takeover

Publisher "terminates discussions" following management presentation

The year's longest-running on-off saga appears to have finally ended with the announcement from Electronic Arts that it has decided to end talks with the Take-Two management team over a possible takeover.

The publisher, which made the initial bid back in February this year to acquire the Rockstar Games parent company, made the decision to terminate discussions with Take-Two following a presentation from the latter's management team.

A statement from EA didn't cite any specific reason for the end of the seven month chase, but merely noted that the company still had "a high regard" for its former target's creative teams and products, but "after careful consideration, including a management presentation and review of other due diligence materials... EA has decided not to make a proposal to acquire Take-Two and has terminated discussions with Take-Two."

"EA is tracking toward a record breaking year," commented CEO John Riccitiello. "We're launching 15 new games including award-winners like Spore, Dead Space and Mirror's Edge, great new titles from the Sims, new family titles with Hasbro, and the highest quality slate of EA Sports titles on this generation of consoles.

"We're also expanding beyond our core business with a series of direct-to-consumer launches including Warhammer Online."

The company's share price, which leapt to USD 26.89 back in February on news of the original announcement by EA, stood at USD 21.89 at the close on Friday - significantly lower than the original USD 25 offer made by EA.

Update: Take-Two's chairman Strauss Zelnick has now issued a response to EA's decision, pointing out that the company is in active discussions with companies about possible future partnerships.

Connect with world renowned investors

14 - 16 April 2021

Join the event

More stories

EA will soon release new technology to tackle racism and toxicity in FIFA 21

Publisher has banned over 9,000 accounts and issues over 25,000 warnings or suspensions since October launch

By James Batchelor

EA College Football reportedly won't launch until 2023

Internal document sent to schools by licensing group puts a date on EA's return to college sports

By Eric Van Allen

Latest comments (1)

Arseny Lebedev Marketing Associate, Large Animal Games12 years ago
Will the stock price increase back its high point? I hope so ...
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.