Electronic Arts announced Sunday that it has made an all-cash, $2 billion bid to acquire Take-Two Interactive Software.
New-York based Take-Two, best known for its GRAND THEFT AUTO franchise, rejected EA's proposal, made on Feb. 19.
EA's proposal of $26 per share represents a premium of 64 percent over Take-Two's closing stock price on Feb. 15th, the last trading day before EA sent its revised proposal to Take-Two, and a 63 percent premium over Take-Two's 30-day trailing average price over the thirty trading days ending on that date.
The rejection of the EA letter sent by EA Chief Executive Officer John Riccitiello to Strauss Zelnick, Executive Chairman of the Board of Directors of Take-Two led EA to release the letter to Take-Two's shareholders and the public.
The EA letter warned that further Take-Two delay in accepting EA's proposal could prevent Take-Two's shareholders and other constituents from realizing its benefits.
"There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today, Riccitiello wrote.
"Electronic Arts' proposal provides insufficient value to our shareholders and comes at absolutely the wrong time," Take-Two chairman Zelnick said in a statement Sunday to the ASSOCIATED PRESS.
AP further reports that Zelnick said EA rejected Take-Two's offer to resume discussions of the takeover bid the day after GRAND THEFT AUTO IV hit store shelves.
EA is the publisher of many popular sports franchises, including MADDEN NFL and FIFA SOCCER.
They announced earlier this month their SPORE game, from SIMS creator Will Wright, will hit shelves in September.