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Fight Continues Between Take-Two and EA

Electronic Arts' bid to buy upstart Take-Two Interactive for $2 billion has gone virtually unanswered, according to Take-Two chairman Strauss Zelnick in a conference call with analysts on Tuesday, VARIETY reports.

The GRAND THEFT AUTO publisher remains open to discussing an acquisition after GRAND THEFT AUTO IV's release on April 29, but Zelnick said EA had rejected that option.

The $2 billion offer was deemed inadequate by Take-Two, but odds increased on Monday that EA (or another company) would offer a higher price.

Two mutual funds, among Take-Two's largest shareholders, sold off most of their stake in the company on Monday, indicating the $26 a share stock price isn't likely to increase.

Take-Two's net loss in the fiscal period ending January 31 was $38 million, and is unable to make a profit when a GRAND THEFT AUTO title isn't released.

However, that the fourth installment will be released this quarter led to Take-Two boosting the lower end of its revenue guidance for the current fiscal year from $1.1 billion to $1.25 billion.

Take-Two's stock was down to $24.65 before the earnings were announced, but went up three percent in after-hours trading.