No merger for Electronic Arts, Take-Two

By Lisa Kerner

Charlotte, N.C., Sept. 15 - Electronic Arts Inc. will not make a proposal to acquire Take-Two Interactive Software Inc., and discussions between the two companies have ended, an Electronic Arts news release said.

EA said it made the decision after careful consideration and a review of other due diligence materials provided by Take-Two.

John Riccitiello, EA chief executive officer, said his company is "tracking toward a record breaking year" with the launch of 15 new games.

Take-Two, in a separate statement, said it is in discussions with other parties as part of its process to consider strategic alternatives.

"We have an exciting future ahead of us, powered by our profitability, a significant cash position, the absence of debt, an undrawn credit facility and a terrific lineup of games," Take-Two CEO Ben Feder said in the statement.

In August, EA let its unsolicited, conditional $25.47-per-share tender offer for Take-Two expire. The offer had been extended several times since March. Only 15% of Take-Two's stock had been tendered under the offer as of July 18, it was previously reported.

In February 2008, Take-Two turned down EA's original unsolicited offer to acquire the company for $25.00 per share and then said no to a revised $26.00-per-share offer.

Take-Two and Electronic Arts are interactive entertainment software companies based in New York and Redwood City, Calif., respectively.

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