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FTC Greenlights EA’s Proposed Acquisition of Take-Two

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By Tom Ivan

August 21, 2008

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"The investigation has been closed"

The Federal Trade Commission has cleared EA’s proposed acquisition of Take-Two following a lengthy investigation by its Bureau of Competition.

The non-public investigation into EA’s hostile takeover bid found that the potential merger wouldn’t substantially lessen competition in the games market, removing one of the remaining hurdles blocking a deal.

“Upon further review of this matter, it now appears that no additional action by the Commission is warranted at this time. Accordingly, the investigation has been closed,” reads a letter sent to both publishers.

Earlier this week EA allowed its $25.74 per-share offer for Take-Two to expire, but EA chief John Riccitiello and Take-Two chair Strauss Zelnick have agreed to continue talks behind the scenes.

Take-Two will show EA a presentation that includes "non-public information" such as the company's three year product release schedule and management's financial projections, and the pair will most likely continue to debate on an appropriate per-share asking price.