EA Withdraws Offer for Take-Two

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Written by BuckGB on August 18th, 2008

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Electronic Arts said on Monday that it had withdrawn its $2 billion tender offer to purchase its rival Take-Two Interactive, ending its five-month hostile takeover bid for the maker of the Grand Theft Auto video game franchise.

Electronic Arts said it withdrew the offer because the economics of the deal no longer made sense. The company has said throughout the process that its willingness to close a deal depended on whether it could subsume Take-Two's business in time for the critical holiday selling season.

(Enough time has passed that our economic model is obsolete,) said Jeff Brown, a spokesman for Electronic Arts. (We can no longer integrate their titles into our global distribution for the holiday.)

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