New York – As the gaming wars heat up, Electronic Arts Inc. stated that it will not be extending its Monday night deadline for the $2 billion offer to buy Take-Two, the company most famous for the popular video game series ‘Grand Theft Auto’.
The public posturing by the two companies has increased so that each company can extract a better deal from the merger. EA claims that it will not be able to combine the company before the holiday season during which gaming companies make most of their sales. EA is therefore claiming to review assumptions made to support the offer price of $25.74 per share.
On the other hand, Take-Two chairman Straus Zelnick claims that the offer price is already too low. However, EA has stated that under a confidentiality agreement, it will look at the financial presentation by the Take-Two team.
Market analyst predict that if Take-Two plays its cards right, it could command a price between $26 and $27.
EA has been criticized for lacking creativity in its gaming content and a merger with Take-Two is a step toward improving in this area.
Take-Two has had to go through management shuffles after most of the executive team was fired by the shareholders over poor results, accounting troubles and controversial content of their video games. One of the merger benefits EA has pitched to Take-Two shareholders is that they would be working under a stable management which has been solidly organized into four game divisions and distinct independent development studios.
Related Link : AP
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