LOS ANGELES, March 13 (Xinhua) -- Similar to
Microsoft's fight to take over Yahoo, U.S. video game giant Electronic Arts' bid
for a rival company has gone hostile, as it launched a tender offer directly to
the company's shareholders after being rejected by its management.
The Silicon Valley-based Electronic Arts (EA) issued
a statement Thursday, saying that it has commenced a tender offer worth 26 U.S.
dollars per share for Take-Two Interactive Software, which publishes the
controversial and popular "Grand Theft Auto" game series.
"We believe Take-Two investors will see our tender
offer as the best way to maximize the value of their investment in Take-Two,"
said John Riccitiello, EA's chief executive, in the statement.
EA's new offer matches one made earlier to the
management of the New York company, which rejected the 2-billion-dollar bid by
saying it was "significantly undervaluing" the company's business.
It was reported that EA began approaching Take-Two
management about a potential merger last month, and made its takeover plan
public after its offer was rejected.
Meanwhile, Take-Two issued a statement Thursday
asking its shareholders not to take action on the EA offer until its board of
directors reviews the deal.
But some of the company's shareholders have since
been busy arguing for the takeover proposal. Two of its largest shareholders
earlier this week said that sold off large portions of their stakes, while
another shareholder has sued Take-Two over its refusal to negotiate with EA.
EA said its new offer would expire soon, and industry
analysts believe the tender offer is likely to succeed as Take-Two shareholders
consider and weigh the risk of EA walking away from the proposal.
Take-Two earlier has said it could discuss with EA
about a possible merger only after its new "Grand Theft Auto" game is launched.
The newest edition of "Grand Theft Auto", a series
that has sold more than 60 million copies around the world, is scheduled to
release in April and expected to become another bestseller.
EA's effort to take over Take-Two has been seen as a
step to maintain its industry clout in the wake of the merger of U.S. video-game
powerhouse Activision and the video game division of French entertainment
conglomerate Vivendi, whose revenue from the combined operations could rival
EA's.
