Electronic Arts have made a bid to takeover the smaller gaming company Take-Two, famous for the franchise "Grand Theft Auto".

It is reported that video game publisher Electronic Arts (EA) have made an all cash offer of $26 per share which totals approximately $2 billion for the Take-Two company. This bid comes at a time when Take-Two are preparing for the anticipated April 29 release of 'Grand Theft Auto IV'. Following a refusal of the offer, EA decided to make public details of the offer in order to attract the attention of the shareholders at Take-Two. It appears that reasons for the Take-Two refusal are due to beliefs that the company's value has been underestimated and also due to the proximity of the new release at the end of April.

It is reported that the proposal was made in a letter from Chief Executive Officer at EA, John Riccitiello to Strauss Zelnick, Executive Chairman of the Board of Directors of Take-Two on February 19th. EA have issued a press release in which advantageous reasons for such a deal for both sides are explained. EA's CEO, John Riccitiello stated in this press release that "Our all-cash proposal is a unique opportunity for Take-Two shareholders to realize immediate value at a substantial premium, while creating long term value for EA shareholders. Take-Two's game designers would also benefit from EA's financial resources, stable, game-focused management team, and strong global publishing capabilities."

In this letter EA stressed the importance of timing with regards to the offer. John Riccitiello noted that "There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today". The press release also states that "The letter added that timely completion of the proposed transaction would allow EA's strong publishing and distribution network to positively impact the ongoing post-launch sales of GTA IV and support the new Take-Two titles scheduled for launch later in the year and during the holiday selling season."