The Electronic Arts/Take Two takeover saga marches ever onwards, with EA having now agreed to take a breather while the Federal Trade Commission (FTA) investigates the proposed buyout of the GTA IV
Before it completes the proposed acquisition, EA has said it will wait until either the FTC provides written confirmation that it has completed its investigation of the proposed deal. Otherwise, the company will wait until 45 days have passed following the publisher complying with the FTC's Second Request for information. EA will be able to act following the the first of those two events coming to pass.
A notification of the fact on Take Two's website reads as follows - “On June 4, 2008, EA and Purchaser announced that on June 3, 2008, EA entered into an agreement with the FTC modifying the scope of the Second Request, pursuant to which, among other things, EA agreed that it would not consummate the acquisition of the Company until the earlier of (i) 45 days following substantial compliance with the Second Request or (ii) written notice from the FTC closing the investigation.”
The FTC is investigating the deal to make sure it is not anti-competitive.
The most recent extension of EA's offer to buy Take Two
was set to expire on June 16th, remaining at $25.74 per share. Yesterday's last sale of Take Two stock was for $27.31.
The further delay in the process could work in EA's favour, allowing the fervour surrounding the launch of GTA IV
to die down and Take Two's value to dip.