This summer, everyone and their mom was talking about EA’s hostile attempts to purchase Take-Two for a reported $2-billion. When the offer fell through, the company said it was still in discussions with other parties regarding what they called “strategic alternatives.” Now, nearly one month later, the company, ‚ best known for the mega successful Grand Theft Auto series has officially ceased all discussions with the interested parties and has opted to stay an independent publisher.
“Take-Two’s recent performance demonstrates our potential to create value for the long term,” said Take-Two CEO Ben Feder, adding that the company has no debt and an undrawn $140 million credit facility.
There are some in the industry who believe that the announcement is a mere formality. Pointing to the fact that no smaller company would be able to match EA’s bid (which was called “inadequate” by Take-Two), analysts believe much credit can be given to the fact that Take-Two has grown as a company since EA’s initial bid and that what happens from here will be strongly contingent on what happens with Grand Theft Auto developers Rockstar games, whose contract expires in early 2009.