Electronic Arts (ERTS) Walks Away From Take-Two (TTWO)

Posted: September 14, 2008 at 4:21 pm

R218533_855025Take-Two Interactive (TTWO) chairman Strauss Zelnick overplayed his hand. He continued to refuse a buyout bid from larger game company Electronic Arts (ERTS). Now Take-Two shareholders will pay for Zelnick’s error.

According to The Wall Street Journal, "Ever since EA first offered $26 a share for Take-Two in February, the New York-based publisher had rejected EA’s offer as inadequate."

Take-Two currently trades at just under $22. Prior to the offer, TTWO traded at $15.

Watch it move back toward that $15 level tomorrow.

Douglas A. McIntyre

Read more: Mergers and Buy Outs, ,