EA: We waited until GTA IV was complete before making $2bn move

February 25th, 2008, 16:51 Posted By: wraggster

Publisher seeks "friendly" acquisition of Take-Two

Electronic Arts has said that it waited until the development of Grand Theft Auto IV was complete before making a formal proposal to acquire its publisher Take-Two Interactive.

The company also believes the time is right for the proposed acquisition as EA has completed its internal reorganisation and its newest studios – the recently acquired Pandemic and BioWare – are currently settling in.

"We've waited to ensure that our proposal did not disrupt development of GTA IV," said EA. "The game is scheduled to launch in about two months, which means the core development should be essentially complete."

Electronic Arts said that the two companies have been in discussion on-and-off for about a year, with official dialogue to discuss the intention to acquire Take-Two opened in December, followed by a formal proposal on Febraury 6, and second proposal on February 19.

Despite Take-Two's rejection of the USD 2 billion offer, EA maintains its proposal to acquire the rival publisher is "friendly to Take-Two shareholders, developers, partners and customers. We continue to seek a friendly, negotiated transaction," added EA.

EA believes that Take-Two's internal studios - which includes Firaxis, Visual Concepts and Irrational - would be able to maintain their own identities, and that the Rockstar teams would also be comfortable working as part of the Electronic Arts group.

"We have great respect for the Rockstar leadership team and some of our executives have worked with Rockstar leaders while in previous positions with other companies.

"We believe EA's decentralised label organisation will be attractive to Take-Two’s creative talent," added EA.

Although EA said that it was too early to discuss any plans for staff changes or the future of intellectual properties, it did reiterate its respect for the Rockstar portfolio, stating, “We strongly believe that behind all the controversy is a core of great intellectual property and development talent.

"These titles don’t sell millions because they’re controversial; they sell because they’re great games."

http://www.gamesindustry.biz/content_page.php?aid=33472

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