Video games firm mounts $2bn takeover bid

US video games publisher Electronic Arts has launched a $2bn (€1.3bn) takeover bid for rival Take-Two Interactive Software, owner of the Grand Theft Auto game.

The world’s largest independent games group has gone public with an all-cash bid of $26 (€17) a share, after the New York-based company’s board privately rejected two offers.

The proposal is a 50% premium to Take-Two’s closing share price on Friday but Take-Two has rejected the approach, saying it lacked value for shareholders.

EA chief executive John Riccitiello said Take-Two’s quick acceptance of the offer would mean EA could put its marketing muscle behind the release of Grand Theft Auto IV, set for April 29.

Take-Two called the EA offer a “highly opportunistic” attempt to take advantage of the game’s upcoming release.

“Electronic Arts’ proposal provides insufficient value to our shareholders and comes at absolutely the wrong time,” Take-Two chairman Strauss Zelnick said.

Mr Zelnick said EA rejected Take-Two’s offer to resume discussions of the takeover bid the day after “Grand Theft Auto IV” was released.

The interest emerged as Take-Two attempts to recover after a rocky period.

Shareholders threw out most of the company’s top leadership last spring over poor results as well as accounting troubles and controversy surrounding violent and sexual content in the company’s games.

Last year, the British Board of Film Classification refused to certify violent game Manhunt 2 – the first UK ban for a video game in a decade.

EA, which publishes the FIFA Soccer series among its sports franchises, has been working recently to beef up its product line-up with a wider variety of titles.

The EA’s proposed buyout of Take-Two comes amid consolidation in the sector, which is expected to increase competition in the games market.

French media and telecom giant Vivendi plans to combine EA’s chief rival, Activision, with its own games unit to form Activision Blizzard. The merged company will own the popular online game World of Warcraft and the Guitar Hero franchise.