EA's next move is...
Take Two is likely to attract many suitors. But Electronic Arts is still the mostly likely to grab it.
NEW YORK (Fortune) -- It's back to the playbook or the pocketbook for Electronic Arts if it's to win Take-Two Interactive.
Take-Two Monday rejected a $2 billion hostile offer from Electronic Arts (ERTS). Take-Two (TTWO) shares jumped 52% Monday on the news.
EA stale roster of sports titles like Madden '08 and NCAA games has tugged down sales growth and analysts like Deutsche Bank's Jeetil Patel have lit warning lights on the twin-engine sputtering at EA. Patel has big concerns over EA's dipping market share, a situation only made worse by the price cuts necessary to keep the games moving.
Meanwhile Take-Two will soon release its blockbuster Grand Theft Auto IV. The debut of the hotly anticipated virtual-Newark based car theft video game will hotwire sales for the New York game maker, say observers. In its rejection letter, Take-Two essentially accused EA of trying to steal the business ahead of the big Grand Theft release. "EA's unsolicited offer is highly opportunistic and is attempting to take advantage of our upcoming release of Grand Theft Auto IV," the company said Sunday.
Take-Two's "on the block" status now is expected to stir interest among big media shops looking for new growth areas. Analysts point to names like Viacom (VIA), Time Warner (TWX, Fortune 500) and News Corp. (NWS, Fortune 500) as potentially interested parties.
But one Wall Street analyst says Electronic Arts has the most to lose and therefore the highest motivation to grab Take-Two. "They didn't come with their best last offer," says the analyst of EA's $26-a-share bid. "They will have to sweeten it a bit." 
-
Take the stress out of holiday shopping with our picks for the tech geeks on your list. More -
IBM, led by CEO Samuel Palmisano, takes the top spot of best businesses for nurturing talent. More -
Most books on Apple's CEO come in one of three genres: Hero, Creep or Creepy Genius. More -
Stars from Rachael Ray to Neil Patrick Harris reveal the apps they love to use. More -
Executives from Andy Grove to Bob Iger explain what makes Jobs one of the best business minds of our time. More -
Which young executives at public companies raked it in - and how much did they earn? More
