Electronic Arts presses Take-Two to accept buyout

Electronic Arts Inc. turned up the heat today on its $2-billion buyout offer for Take-Two Interactive Software Inc., taking its cash offer directly to Take-Two's shareholders after the company's board rejected the bid as insufficient.

EA's effort to do an end run around Take-Two's management came after months of frustrated negotiations to buy the New York company, which publishes video games such as "BioShock," "Civilization," and "Grand Theft Auto," a franchise that has rung up more than $3 billion in sales in the last 10 years.

"The tender offer is an opportunity for Take-Two's shareholders to have their own vote as to whether the transaction makes sense," EA Chief Executive John Riccitiello said in an interview.

The tender offer calls for EA to pay $26 for each share of Take-Two, a 64% premium over the stock's closing price on the day EA made its formal bid to Take-Two's board on Feb. 19. The offer expires April 11, the day after Take-Two's annual meeting.

Take-Two's board has told shareholders it would review the bid and make a recommendation by March 27.

Owen Mahoney, EA's senior vice president of corporate development and the Redwood City company's merger negotiator, said EA is unlikely to raise its price.

"We feel very strongly about $26 a share," Mahoney said. "Our board expects us to be very price-disciplined."

alex.pham@latimes.com