Electronic Arts' Takeover Bid Rejected Ahead of GTA IV

by Jordan Yerman | March 26, 2008 at 08:02 am

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Ahead of the release of Grand Theft Auto IV, Take-Two Interactive Software is rejecting a hostile takeover bid from media giant Electronic Arts. In this case, pressing the Y-button doesn't work*.

Take Two's financial advisory board has suggested that acceptance of EA's terms would be counterproductive for the company, and not suitably profitable for shareholders.

In an announcement Wednesday morning, Take-Two said its board of directors and company officers have recommended that shareholders reject EA's bid of $26 a share. The board also said it's developing alternative strategies for possible alliances with third parties, including EA, that would kick in after the April 29 of release of Grand Theft Auto IV.

Take-Two's board noted that "substantive discussions" about possible alliances have yet to occur, although it did emphasize that the company is now open to them. In its statement, the company said it "unanimously determined that the $26-per-share cash offer is inadequate in multiple respects and contrary to the best interests of Take-Two's stockholders."

(* In the Xbox version of the GTA series, one presses the yellow Y-button in order to, uh, forcibly commandeer a vehicle. Here's a wireframe of the action)