If there is any hope for Take-Two to certainly avoid acquisition by EA, it is if the Federal Trade Commission sees it themselves as an anti-competitive move. EA's hostile takeover deadline, which has been extended from April 12, is tonight for Take-Two's shareholders to make a decision in which Take-Two is also to hold its annual meeting. The Federal Trade Commission is seeking information from EA and investigating any anti-competitive issues involving EA's merger bid. Representatives at EA have been quoted as saying they do not believe that the merger is anti-competitive.
Federal antitrust regulators are looking further into Electronic Arts Inc.'s hostile merger bid to acquire Take-Two Interactive Software Inc., the video game publishers disclosed today.
Both companies received a second request for information from the Federal Trade Commission related to EA's $2-billion cash offer, which would combine two of the industry's largest game developers. The request follows an informal query issued March 14, three weeks after EA publicly announced that its offer had been rejected by Take-Two's board.
EA has since launched a hostile tender offer, bypassing the board and appealing directly to Take-Two's shareholders.
New York-based Take-Two, which is holding its annual meeting this evening, said in a statement that while its board had rejected EA's offer, "we also don't anticipate that there would be significant or insurmountable antitrust issues that could not be remedied."
Jeff Brown, spokesman for Redwood City, Calif.-based EA, said the request was "not uncommon for this type of transaction," and that "we believe this acquisition would not be anti-competitive."
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Money means more in this business, than logic.