Electronic Arts starts tender offer for Take-Two
Video game giant takes bid to shareholders, offers $26 a share cash.
NEW YORK (CNNMoney.com) -- Electronic Arts said Thursday it has launched an all-cash tender offer to buy rival Take-Two for $26 a share.
The offer to buy shares from existing shareholders comes after EA's unsolicited takeover bid was rejected by Take-Two's board. The offer is estimated to be worth about $2 billion.
The $26 a share represents a 4.4% premium over Take-Two's closing share price on Wednesday night and is 64% above where the stock closed on Feb. 15 - the day Redwood City, Calif.-based EA (ERTS) launched its initial takeover pitch.
Take-Two (TTWO) is launching the latest in the lucrative Grand Theft Auto video game series April 29. EA had previously said it would like to takeover its rival quickly to put its marketing muscle behind the product. Unless extended, the deal will expire April 11.