FTC clears EA's potential buyout of Take-Two

EA had let a $2 billion tender offer for its smaller rival expire Monday, but the companies have been talking and analysts widely expect a deal to eventually go through. The two have been unable to agree on a price since the unsolicited offer went public in February, with Take-Two wanting more money and EA saying its bid is at a fair price.

The FTC sent letters to both companies Wednesday clearing the potential buyout. Take-Two said in a statement it is "pleased whenever an obstacle to the participation in our process by any interested party is removed."

Cowen and Co. analyst Doug Creutz said in a client note he "continues to believe" that EA will pay more than its previous offer, which amounts to $25.74 per share.

EA, however, said Wednesday while it has "the greatest respect for Take-Two's creative teams and products, we can provide no assurance that any transaction will result."

Shares of New York-based Take-Two jumped $1.27, or 5.5 percent, to close at $24.34.

Shares of Redwood City, Calif.-based Electronic Arts added 63 cents to $47.06.