[Posted on August 20, 2008 - 12:10 PM]
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DiggFederal antitrust enforcers have given video game makers Electronic Arts Inc. [ERTS] and Take-Two Interactive Software Inc. [TTWO] the go-ahead to merge. In letters to the companies dated Aug. 18 but disclosed on its Web site today, The U.S. Federal Antitrust Commission said it has closed its investigation into the proposed $2 billion deal.
The decision removes a major potential obstacle to the deal, which EA proposed in February in an unsolicited bid. Although the FTC was not expected to block the transaction, there were concerns the companies might have to divest sports games titles, where they overlapped.
Law firms Covington & Burling and Latham & Watkins LLP served as antitrust counsel to EA o the deal; Proskauer Rose LLP and Axinn, Veltrop & Harkrider LLP advised Take-Two.
EA and and Take-Two on Monday said they are negotiating a nondisclosure agreement under which Take-Two, publisher of the popular "Grand Theft Auto" series of games, will meet with EA to share some financial and strategic information in an attempt to persuade EA to sweeten its previous $25.74 per share bid. EA, which had extended its hostile tender five times, let the bid expire as of midnight Monday. -- Alain Sherter
See the FTC's closing letters to counsel for Electronic Arts and Take-Two
For more see Dealbook and Reuters
