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Electronic Arts Extends $2 Billion Bid for Take-Two

Video game publisher Electronic Arts Tuesday again extended its $2 billion takeover offer for smaller rival Take-Two Interactive Software, but Take-Two again rejected the bid as too low.

Take Two Interactive
Take Two Interactive

Electronic Arts , publisher of blockbuster games such as "Madden" and "Need For Speed," said it extended the $25.74-a-share offer to July 18 from June 16.

Take-Two , publisher of "Grand Theft Auto," said its board continues to recommend that shareholders not tender their shares to EA, which launched its bid in February.

About 6.14 million shares of Take-Two have been tendered in the offer, which Take-Two said represents just 7.9 percent of the total.

Take-Two Chairman Strauss Zelnick said in a statement, "The latest extension of EA's unsolicited, highly conditional tender offer does not alter the fact that their proposal still significantly undervalues Take-Two, a fact that is reflected in the overwhelming number of stockholders who still have not tendered their shares."

Take-Two said it continues to mull its strategic alternatives.

Take-Two shares slipped 5 cent to $26.35 in early Nasdaq trading. Shares of EA, which would become the largest sports game maker by far if it buys Take-Two, fell 44 cents to $46.62, also on Nasdaq.