EA again extends Take-Two offer deadline

The $25.74-per-share offer, which had been set to expire at midnight Monday, remains unchanged, EA said. The world's largest video game publisher called the more than 48 percent premium to Take-Two's stock price before the bid became public in February "substantial."

New York-based Take-Two has repeatedly rejected the unsolicited bid as too low but has said it has begun discussions with "interested parties" about possible alternatives, which could include a sale. Take-Two said Tuesday the EA offer still "significantly undervalues" the company.

Analysts generally expect a deal to eventually go through, with EA raising the price by a couple of dollars. Take-Two has touted the successful launch of its blockbuster "Grand Theft Auto IV" as proof the company is worth more, but EA calls the offer full and fair. As of May 31, 8.5 million copies of GTA IV have been sold to consumers worldwide.

"We congratulate Rockstar on the successful launch of GTA IV but believe our offer reflects a full and fair price based on the long-term value of Take-Two's entire operation," Owen Mahoney, senior vice president of EA's corporate development, said in a statement.

In the latest quarter, the GTA franchise accounted for more than three-quarters of Take-Two's total publishing revenue. The company's sports business, meanwhile, remains unprofitable.

Like the last time it extended the offer, Redwood City, Calif.-based EA said the latest extension allows the Federal Trade Commission's antitrust review of the proposed acquisition to continue.

As of Monday, about 6.1 million shares of Take-Two had been tendered, which represents less than 8 percent of the company's outstanding shares. It is also slightly below the 6.2 million shares that had been tendered as of May 17, the last trading day before the last time EA extended the deadline.

Take-Two Chairman Strauss Zelnick said in a statement the low number of shares tendered shows that the $2 billion offer significantly undervalues Take-Two.

EA's original offer was for $26 per share, but this was lowered in April to reflect additional shares of restricted stock granted to Take-Two's management.