FTC Sends Second Anti-Competition Inquiry To Electronic Arts
Despite Take-Two's consistent refusals, Electronic Arts continues its attempt to acquire the rival publisher, in what can now only be described as a hostile takeover. However, EA has revealed that they've received a second request for anti-competition information from the U.S. Federal Trade Commission (FTC).
According to Gamasutra, EA believes that their proposed deal with Take-Two is in no way anti-competitive, but the FTC hasn't reached a decision on the matter just yet. Evidently, they need "further information and additional time to conduct its review" before reaching a conclusion. The deadline for EA's last offer to Take-Two ($26/share) expires at 11:59 p.m. EDT tomorrow, April 18, but although the deadline has already been moved once, EA said they could move it again if necessary. Take-Two caused the alteration of the original deadline by forming a Stockholders Rights Agreement...an act EA has called a "poison pill." As for the stockholders themselves, Gamasutra says the level of support for this proposed transaction is "unclear," but everything might get resolved at Take-Two's annual meeting today in New York.
In the recent past, most industry analysts have agreed that this deal will eventually go through, and EA will end up with the rights to franchises like Grand Theft Auto. However, many gamers are worried that this will change the blockbuster franchise for the worse, so we're getting a mixed bag of results. Either way, though, EA knows how to go where the money is...
4/17/2008 Ben Dutka