EA drops its $2 billion Take-Two acquisition
Discussions terminated between the two leading video game publishers
Electronic Arts has given up on its $2 billion bid to acquire rival Take-Two Interactive Software.
The takeover of Take-Two, best known for the Grand Theft Auto video game series, would have made EA the world's largest independent video game software maker.
"After careful consideration, including a management presentation and review of other due diligence materials provided by Take-Two Interactive Software, EA has decided not to make a proposal to acquire Take-Two and has terminated discussions with Take-Two," EA said in a statement.
EA made a public bid for its rival in February at $26 a share, after Take-Two rejected a amicable takeover at $25 a share. When the public bid was rejected as too low, EA launched its hostile bid the following month, which led the two companies to sit down for private talks in August.
"Take-Two's business has continued to strengthen since the time EA first made its offer. 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.," said Ben Feder, chief executive officer of Take-Two.