EA have announced that they are discontinuing their takeover bid for Take-Two (2K) and have terminated their discussions with that company. This brings to an end EA’s campaign to acquire 2K with their initial bid of $2 billion, a sum of money 2K repeatedly turned as they felt it severely undervalued the company. The initial bid, which saw numerous extensions, eventually turned hostile in a perceived attempt to acquire 2K before the lucrative release of Grand Theft Auto IV, a notion EA denied, but acknowledged.

More recently, EA stepped away from their hostile takeover plan, entering closed-doors talks with 2K in an attempt to negotiate 2K’s true worth. EA repeatedly stressed the urgency of the talks, wanting to gain control of 2K’s line-up before the lead-up to Christmas. It now appears as though no agreement has been met and the talks have been terminated, after EA’s “careful consideration, including a management presentation and review of other due diligence materials”.

2K will continue to seek alternative partnerships, according to chairman of the Board of Take-Two, Strauss Zelnick, “…we remain actively engaged in discussions with other parties in the context of our formal process to consider strategic alternatives. We’re especially proud of the success we’ve enjoyed over the past eighteen months and we remain confident in our ability to generate value for stockholders”.