EA, Take2 Clash Over Grand Theft Auto IV

The megapublisher lusts after Rockstar's hot-ticket game, but Take-Two isn't ready to put out.

EA is already the dominant players in the games industry but when it comes to games aimed at more mature audiences, it has surprisingly little to offer. To rectify this, the company is going after Take-Two, home to the most recognized, notorious mature series in the industry.

Over the weekend, EA offered to buy Take-Two for $2 billion. Take-Two publishes not only 2K Games titles such as BioShock but also Rockstar's stable of hit games, including the mighty Grand Theft Auto.

"EA is under-represented in M-rated content; this gives us the world's best M-rated content." EA's John Riccitiello said during a conference call over the weekend, as reported by Gamasutra.

But the deal is easier said than done.

Take-Two rebuffed EA, saying that its offer of $26 per share undervalued the company. The $26 bid is already an increase on the part of EA, which offered Take-Two $25 per share in December.

Sitting in the middle of the very public courting process is Grand Theft Auto IV, a game tipped by many to be the biggest game of 2008.

"We believe EA's unsolicited offer is highly opportunistic and is attempting to take advantage of our upcoming release of Grand Theft Auto IV, one of the most valuable and durable franchises in the industry," Take-Two said in response to EA's offer.

Riccitiello described Grand Theft Auto as the asset in the conference call. He said that EA was not interested in changing the game and purposely waited to ensure that development on the game was done before approaching Take-Two, to ensure "minimal disruption".

"I wouldn't change a line of code in BioShock. Nor would I in GTA, nor would I in Max Payne. I think that many titles these guys put out are about as good as it gets. What we would do is sell more of it... very cost-efficiently," Gamasutra reports Riccitiello saying.

Timing is key in this transaction. EA said that the Take-Two's value would decline as time passes, while Take-Two insists that it will not go into discussion before Grand Theft Auto IV comes out in April.

Alex Wollenschlaeger
Editor, Kikizo