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Published on Tuesday, August 19, 2008
By LA Daily News Staff Writer
Video-game publisher Electronic Arts Inc. is retracting its hostile bid for smaller rival Take-Two Interactive Software Inc., but a deal - and a friendly one at that - is likelier than ever.
Take-Two, best known for the popular "Grand Theft Auto" video-game series, confirmed Monday that it expects to sign a confidentiality agreement with EA to begin formal discussions about "strategic alternatives."
EA had said earlier that it wouldn't extend the Monday night deadline for its $2 billion tender offer to buy Take-Two. The companies have been unable to agree on a price for the past six months.Now, EA says that if it does buy Take-Two, it no longer believes it can combine the company in time for the holidays, when video-game companies make most of their money. Because of this, EA said it needs to review assumptions made to support its offer price of $25.74 per share.
"They are both posturing," Wedbush Morgan analyst Michael Pachter said
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