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EA: We Want Rockstar

It's the Microsoft-Yahoo battle of the video game industry. Electronic Arts took its proposed $2 billion takeover of Take Two Interactive directly to shareholders. Most analysts were baffled by Take Two's decision to reject the generous offer, which values the Grand Theft Auto maker's shares at a 50 percent premium over its Feb 22nd closing price of $17.13.

Take Two CEO Strauss Zelnick is now saying that EA should wait until after the release of Grand Theft Auto IV, which analysts predict will be the year's biggest seller with sales of more than 10 million copies.

EA CEO John Riccitiello said: "If we don't conclude this transaction, if we walk because of whatever level of inability to get this done, the scary thing is what the stock trades at after we leave, not after 29 April." That said, Riccitiello admitted that Rockstar Games' Grand Theft Auto series is the primary reason for EA's interest in Take Two, which includes Rockstar, Irrational, Firaxis and other development studios. "The big headline here is that our primary interest is in Rockstar and the intellectual properties around Rockstar."

Read the whole story at BBC News »

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