Electronic Arts just called me to let me know that they are making a bid to acquire Take-Two Interactive in an all-cash merger of about $US 2 billion.
The offer set Take-Two's stock at $US 26 per a share, about 64 percent over the company's closing stock price prior to the company's Feb. 15 offer.
Take-Two's board rejected the offer, leading Electronic Arts to make their offer public to the company's shareholders.
In the letter, attached in the jump, EA CEO John Riccitiello tells Take-Two's Stauss Zelnick that the buy-out would help both the company and its stock holders:
Our all-cash proposal is a unique opportunity for Take-Two shareholders to realise 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. ... There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today.
Specifically, the letter mentions that EA could really help out with the launch of GTA IV. Hit the jump for the full letter and check back later to read our interview with Riccitiello.