Take-Two Not 'Slamming Door' on EA Deal; EA May Consider Hostile Takeover

Although Take-Two has twice rejected bids from leading publisher Electronic Arts, Take-Two Chairman Strauss Zelnick told Reuters that he hasn't totally ruled out a deal with EA just yet.

"We didn't slam the door, we just said look, the price is not right and the time is wrong," said Zelnick, who would not comment on what price he thought Take-Two should command. Although EA had been hoping to acquire Take-Two prior to the April 29 launch of GTA IV, that's not looking likely – at least not as part of a friendly negotiation. "We have to see what steps they take, and we have and will continue to operate in the best interest of shareholders. If something happens that creates a reason to do something different, it's our job to do something different," said Zelnick.

If EA gets antsy and grows tired of Take-Two's rejections, the company may enter into a hostile bid. When asked by Reuters, if EA would actually consider a hostile takeover of Take-Two, CFO Warren Jenson seemed open to the possibility. "Our objective is to make this friendly deal but we have to keep all options open," he said.

"One reason we are offering the premium we are is that we want to close quickly to capture synergies," he noted. "To the extent it is delayed, it becomes less valuable."