EA Speaking Softly with Take-Two Interactive

Electronic Arts Inc. is speaking more softly and has put away it's big stick in its takeover bid of Take-Two Interactive.

Electronic Arts Inc., one of the world's largest video game publishers has decided to retract its hostile takeover bid of Take-Two Interactive, best known for the Grand Theft Auto series. Take-Two has confirmed that it expects to sign a confidentiality agreement in preparation of formal talks with EA.

Basically this means that EA will let the $2 billion hostile takeover offer deadline pass without any extension. The $2 billion deal would have meant $25.74 per share for Take-Two share holders. EA has already extended past offers five times.

EA has had its eyes on Take-Two for quite some time now. Not only for the Grand Theft Auto series, though it is the company's top revenue source, but also for the 2K business including the sports business and especially one of its top titles, Bio Shock. This project is being made into a movie and could net all companies involved a nice profit.

Some are concerned about the loss of another competitive sports franchise on the market. EA Sports has already snagged up rights to many of the major sports franchises including the NFL and this leaves little competitive properties on the market. But 2K Sports has always been one of those properties. But EA believes that anti-trust regulators will give the deal their approval. The Federal Trade Commission is scheduled to have their review complete by Thursday.