Electronic Arts Inc. extended its tender offer for Take-Two Interactive Software Inc. to May 16 and also reduced the price for each share.

The offer that EA made was supposed to expire Friday midnight but it was postponed for May 16. The bid was cut from $26 to $25.74 a share after Take-Two granted the company's management 1.5 million shares of additional stocks. So far the agreement between the companies is still valued at $2 billion.

Take-Two has said that it won't negotiate the acquisition but after April 29 when its new game and best-seller Grand Theft Auto IV is released and placed in stores. The new product could trigger up to $170 million on the first day of sales, Bloomberg noted, quoting a Janco Partners analyst Mike Hickey.

The issue several analysts are observing now is either that EA raises its bid for the company or Take-Two will continue as an independent firm.

Take-Two's board of directors has maintained from the beginning, and continues to believe, that EA's proposal vastly undervalues our company,'' stated today Strauss Zelnick Chairman of the company.

It undervalued the company at $26 per share, and it certainly undervalues Take-Two at $25.74.''

On Friday, Take-Two shares rose 0.50 percent to $25.98 in the New York Mercantile Exchange late afternoon. The increase was set higher than EA's offering which gives signs that the company could increase the bid per share.

Electronic Arts announced publically its bid in March 13 after Take-Two rejected a negotiation in February. Shares of EA closed 1.07 percent up by $52.01 a share on Friday in Nasdaq.