Most people say that a single game company controlling the top titles is a bad thing. I agree. What’s worse though, is when two companies are fighting it out for the top spot, and one of the said companies goes around trying to buy out every game developer under the sun. That’s when things start getting really ugly.

EA announced on Sunday that they have been seeking to merge with Take-Two Interactive, a move that would cost them a cool $2 Billion. Take-Two responded with a flat “Nuh Uh,” stating that their market share will be worth more after the release of Grand Theft Auto IV on April 29th. The story doesn’t end there, though, in fact it’s just getting spicy.
In letters sent back and forth in the past month, which can now be read on Gamepolitics.com, the two companies talk about timing and money. The letters are filled with alot of legalese and numbers that really mean nothing to the average gamer. There are a few juicy bits though, that makes EA’s decision to bring this public all the more baffling.

In one letter, dated February 19th, Take-Two’s Strauss Zelnick offers a Quiet Period, where the two companies would discuss the options behind closed doors. Here’s a snippet of the letter:

“I would like to note that if EA chooses to announce publicly the Board’s proposal or announce any offer by EA to acquire the Company during this Quiet Period, or if the contents of this letter become publicly available in sum and substance, the Company will consider all of its alternatives, including discussions with other parties, and further we will reserve the right to refuse to provide EA access to information, or diligence.”

Apparently, EA chose to announce the board’s proposals, their own offer of merging, and they released pretty much every email detailing the banter between the two companies. Why release this information?  Surely there are more cons to releasing this information than pros. I seriously doubt that Take-Two Interactive is happy about this becoming public so soon.

It appears that now EA is looking to take over Take Two via a hostile takeover, which I don’t think would end well for either company, but may be EA’s only play at this point. EA’s biggest problem is talent retention after taking over companies. A hostile takeover of Take Two could result in a mass exodus of the the prime talent that makes it such a prime takeover target.

Time will tell. EA is definitely trying to get the top spot back from Activision, and merging with Take-Two Interactive would give them a mighty big push. Aside from the obvious Grand Theft Auto series with Rockstar, they would also obtain Bioshock, 2k Sports, and also the exclusive 3rd party Baseball license that Take-Two acquired in 2006. So, not only would they obtain some of the best mature rated IP’s in gaming today, but they would solidify their dominance in pro sports video games.

I personally believe EA could learn a thing or two about Football games from 2k. In all, a merger would have its good points and lows, in the end for us gamers all that matters is that quality is a primary focus.

If the merger happens, you know we’re guaranteed GTAV, VI, VII, VIIII,  IX, X and probably XI, set on the moon or something.  Moon hookers FTW!

Source: Gamepolitics.com

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