After conducting a review of strategic alternatives and discussing possible business arrangements with companies such as EA, Grand Theft Auto and BioShock publisher Take-Two Interactive Software has concluded that it will remain independent.

"Our strong cash position--with no debt and an undrawn $140 million credit facility--gives us the financial flexibility to continue to do what we do best: innovate and create the great games that our customers have come to expect," said CEO Ben Feder.

In addition to its ownership of the Grand Theft Auto and BioShock brands and their respective developers, Take-Two's portfolio includes such notable items as the ever-profitable Carnival Games series, the Max Payne property, and the Sid Meier's Civilization franchise along with developer Firaxis.

Electronic Arts is dropping its pursuit of Grand Theft Auto 4 publisher Take-Two Interactive, the company announced today.

Following months of hostile buyout offers by EA, the companies started talks under a confidentiality agreement last month.

According to the announcement today, "EA continues to have a high regard for Take-Two's creative teams and products," however, "after careful consideration, including a management presentation and review of other due diligence materials provided by Take-Two Interactive Software Inc., EA has decided not to make a proposal to acquire Take-Two and has terminated discussions with Take-Two."

Activision Blizzard subsidiary Activision Publishing announced today that it has purchased FreeStyleGames, a UK-based developer best known for its breakdancing game B-Boy (PS2, PSP).

FreeStyleGames is currently working on "localized downloadable content" for the Activision-owned Guitar Hero franchise, along with a new music-based game. According to Activision, the acquisition represents the latest step in "its global leadership position in the music-based genre." Financial details were not specified.

Over on its official site, FreeStyleGames affirmed that it will "retain creative control, continue to run the studio and have the opportunity to continue to achieve our own ambitious targets."

"We can begin to leverage Activision's experience, infrastructure and support to deliver on the games we have in development," the developer added.

Japanese publisher Capcom has revealed that it plans to pursue "friendly acquisitions and partnerships" with developers worldwide as it strives to increase games sales in North America and Europe, though it will not merge with a major Japanese publisher.

"There are many independent developers overseas with genius development capabilities," explained Mega Man creator and Capcom R&D head Kenji Inafune. "Collaborating with these developed will firmly establish out position as 'Capcom of the world' and further strengthen the title brand."

Part of those plans include "collaborating with companies with an already established record for developing sport-related games," as the company previously did... Read more

Japanese game studio Tecmo, publisher of Dead or Alive and Ninja Gaiden, turned heads last week when it turned down a buyout offer from Final Fantasy maker Square Enix only to enter merger talks with publisher Koei.

Now, Tecmo has emerged to publicly respond to failed suitor Square Enix. In a statement translated by Kotaku, Tecmo acknowledged Square's questions which previously had been ignored and added: "To answer Square Enix's proposal within the time frame of one week provided little room for negotiation and discussion."

Tecmo also credited Koei for a better negotiating situation. "Conversely, regarding the proposal from Koei, there is time for management to consider how to integrate and most likely arrive at ultimately raising our corporate value. This is why we have begun talks with Koei concerning corporate integration."

Koei, perhaps best known for its battlefield hack-and-slash Dynasty Warriors series, has found itself in a difficult situation after the peak of the PlayStation 2. In Japan, it's now "very tough for third parties like us to do our business," said Koei president Kenji Matsubara to Gamasutra.

In a more diversified Japanese market, Koei sees itself stretched thin, a problem Matsubara implies may be solved by a merger. "[The market's] in a transition situation ... these days, we have to spend resources on handhelds, popular consoles like the Wii, and high-performance consoles like the Xbox 360 and PS3."

Square Enix, which recently made "a friendly offer" to buy a controlling stake in Japanese publisher Tecmo, has withdrawn its proposal following a rejection from the beleaguered game company.

The Final Fantasy-producing giant isn't done hunting, however. "We are talking with quite a few companies in and outside of Japan. We are routinely in such talks," said Square Enix president Yoichi Wada as relayed by Reuters.

Tecmo, best known for its in-house Team NINJA creations Dead or Alive and Ninja Gaiden, rejected Square Enix's offer yesterday and instead entered negotiations with Koei, the Japanese publisher known for its battlefield hack-and-slash Dynasty Warriors series.

Square Enix publicly asked Tecmo to explain itself, but was ignored. "Followed by the notice, [Square Enix] immediately requested TECMO for explanation of some issues to receive no response to it, even reasons of the rejection," read a Square Enix statement issued today.

The attempted merger was the latest in a string of acquisitions from the mega-studio. Square merged with Dragon Quest developer Enix in 2003, forming Square Enix, and then purchased Space Invaders owners Taito in 2005.

Japanese game developer Tecmo today rejected the buyout offer from Final Fantasy and Dragon Quest owner Square Enix, instead opting to pursue merger talks with Dynasty Warriors veterans Koei.

Both Koei and Tecmo "have excellent financial positions, strengths and the ability to take advantage of each other in order to improve profitability and solidified the foundation of a worldwide leader," according to a Tecmo statement translated by Kotaku.

At the time of the "friendly" buyout offer, Square Enix noted that it would not further pursue the Tecmo buyout if the proposal was rejected.

Whereas Koei is best known for the battlefield-slashing Dynasty Warriors series, Tecmo has been recently defined by its fighting series Dead or Alive and action-heavy Ninja Gaiden games. Both of those franchises were helmed by Tomonobu Itagaki, who recently left the company and sued for unpaid bonuses.

Tecmo's once Itagaki-led studio Team NINJA is still at work though, with three new titles said to be revealed at the Tokyo Game Show.

Monolithic Japanese developer Square Enix today made a "friendly" offer to acquire a controlling stake in Ninja Gaiden and Dead or Alive developer Tecmo, reports Kotaku.

Tecmo has until September 4 to accept or decline the offer, which would see Square purchase a controlling stake at a 30% premium over current stock prices. The two have apparently been discussing the possible takeover since May, with Square Enix adding that it will not continue to pursue its takeover of Tecmo if the offer is rejected.

"Tecmo is a group of excellent creators with proven track-record in the global market, which is a precious human resource of Japan," reads a statement from Square Enix. "We, however, cannot be optimistic about the future of this significant resource, given the current circumstances surrounding Tecmo."

Tecmo recently saw the resignation of president Yoshimi Yasudam, with recent lawsuits accusing the company of denying promised bonuses to famed game designer Tomonobu Itagaki and refusing to pay its staff overtime.

It marks the latest attempt at expansion from Square Enix, which was formed in the 2003 merger of acclaimed Final Fantasy creator Square and Dragon Quest developer Enix. The company then purchased Space Invaders owner Taito in 2005.

Electronic Arts' oft-extended deadline for its hostile takeover of Grand Theft Auto owner Take-Two Interactive Software will expire today, the companies have confirmed.

With the takeover threat no longer looming, EA will sign a confidentiality agreement that will provide it with the "in-depth management presentation" that Take-Two is using in the "formal process to evaluate strategic alternatives" it mentioned back in March.

The owner of multiple successful properties, including Grand Theft Auto, Max Payne, Civilization and BioShock, Take-Two was first presented with EA's unsolicited $2 billion buyout offer in February. It declined the offer, prompting EA to pursue a hostile takeover.

"We are continuing to consider all alternatives that will maximize value to our stockholders," noted Take-Two CEO Ben Feder. "We are engaged in discussions with other parties as part of a formal process to generate greater value and will act quickly to assist EA in moving expeditiously through our process."

Below are letters exchanged between EA CEO John Riccitiello and Take-Two chairman Strauss Zelnick, which further explain the decisions... Read more

Video game publisher Ubisoft today announced its acquisition of Hybride Technologies, the studio behind the stylish visual effects of the 300 and Sin City films.

Under Ubisoft, Hybride will continue its work with film while "bringing its expertise to leverage Ubisoft's intellectual properties for the movie industry." The two will also work together in developing tools for video game and visual effects production, with a goal of cinema-quality game visuals.

Video game properties held by Ubisoft include the medieval murder simulator Assassin's Creed, the military-themed Tom Clancy brand, the Far Cry open-world shooting franchise, and the story-driven Beyond Good & Evil adventure games along with the Rayman platforming series and its mini-game-driven Raving Rabbids offshoot.

Last year, Ubisoft opened a studio dedicated to the production of... Read more

For the fourth time, mega-publisher Electronic Arts has extended its hostile takeover bid of rival publisher Take-Two Interactive Software. Take-Two shareholders now have until July 18 to consider EA's unchanged offer of $25.74 per share.

EA cited the ongoing FTC review process of the proposed merger as the impetus behind the latest extension. Take-Two owns numerous popular properties, including Grand Theft Auto, Max Payne, Sid Meier's Civilization, and BioShock.

The most recent previous deadline was set for June 16. EA first made an unsolicited $2 billion offer to buy Take-Two in late February, and took that offer directly to shareholders after it was rejected by Take-Two's board of directors.

As of June 16, EA claimed that shareholders had committed to selling it 6.13 million, roughly 7.9%, of Take-Two's outstanding shares. Curiously, that figure marks a slight decline since EA's claims that 6.21 million shares had been tenders as of May 16.

In response, Take-Two CEO Strauss Zelnick again noted its belief that EA's offer "still significantly undervalues Take-Two, a fact that is reflected in the overwhelming number of stockholders who still have not tendered their shares."

Several analysts have suggested that publisher Ubisoft may be a possible suitor for Take-Two as the company fields buyout and merger proposals.

According to a Forbes report, Take-Two chairman Strauss Zelnick said in a quarterly earnings call last week that the company "had and continues to have formal discussions with interested parties," but did not specify further who the parties might be.

The report points to Ubisoft as a possible candidate, noting that the Prince of Persia publisher's rapid growth and expansion to mediums beyond gaming make it a good fit for Take-Two's properties, which include Rockstar's Grand Theft Auto series and 2K Games' BioShock.

"Ubisoft has shown they do a good job of managing original intellectual property," said Cowen and Co. analyst Doug Creutz. "Culturally, Take-Two developers ... Read more

Mega-publisher Electronic Arts has once again extended the deadline for its hostile takeover bid of rival publisher Take-Two Interactive Software, giving Take-Two shareholders until June 16 to consider EA's $25.74 per share offer.

Take-Two is the owner of numerous popular properties, such as Grand Theft Auto, Max Payne and BioShock, along with multiple development studios, including the various branches of Rockstar, 2K Boston, 2K Marin, 2K Czech, and 2K Australia.

EA first made the unsolicited $2 billion offer to buy Take-Two in late February. After it was rejected by Take-Two's board of directors, EA made the same offer to the company's shareholders in an attempt at a hostile takeover.

As of May 16, EA claimed that 6.21 million of Take-Two's 76.87 million shares, roughly 8%, had been tendered and not withdrawn from the offer. Today's ... Read more

Take-Two's SEC filings revealed that a shareholder filed a class action complaint against the company for its response to a takeover bid by publisher Electronic Arts, Kotaku reports.

The suit, filed by Micheal Maulano on April 11, alleges that Take Two's responses to EA's buyout bid contained "misleading and incomplete" information, and that Take-Two's tactics constitute a breach of fiduciary duty.

In the suit, Maulano demands "declaratory relief, preliminary and permanent injunctive relief, damages, and reasonable attorneys' fees and litigation expenses." The report notes that it is unclear how many other shareholders are part... Read more

Following publisher Take-Two Interactive Software's recommendation that its stockholders deny a hostile takeover attempt by rival publisher Electronic Arts, EA has submitted a slightly amended offer to the company's shareholders.

Take-Two Interactive is the owner of numerous popular properties, such as Grand Theft Auto, Max Payne, and BioShock, and development studios, including the various branches of Rockstar, 2K Boston, 2K Marin, 2K Czech, and 2K Australia.

While the basic premise remains the same--a payout of $26.00 per share--Electronic Arts extended the deadline by a week to reflect Take-Two's week-long delay of its annual stockholder meeting, which is now scheduled for April 17. The offer now expires on April 18, 2008.

According to EA, the offer of $26.00 per share represents a 64% premium over Take-Two's closing stock price on February 15, which was the last trading day before EA sent its revised proposal to Take-Two. As of this writing, Take-Two's stock is valued at $25.55 per share.

The other major shift in EA's offer concerns Take-Two's so-called "poison pill" plan, which adopted on March 24 to prevent a hostile takeover at what... Read more

Responding to Electronic Arts' attempt at a hostile takeover, Take-Two Interactive's board of directors has advised its stockholders to reject EA's buyout offer of $26 per share.

In a statement released today, Take-Two--which owns such beloved properties as Grand Theft Auto, Max Payne, and BioShock--labeled the offer as "inadequate in multiple respects and contrary to the best interests of Take-Two's stockholders."

Though this marks the second time that Take-Two has officially spurned EA's unsolicited attempts to acquire the publisher, the company revealed that it is interested in business agreements with EA and other parties.

While now open to discussing possible business combinations, Take-Two affirmed its intent to remain independent and stated that it will not enter into negotiations until after the release of Grand Theft Auto IV (PS3, X360) on April 29.

Labeling Grand Theft Auto as "one of the most valuable and durable franchises in the interactive entertainment software industry," Take Two noted its belief that "the full commercial potential of [Grand Theft Auto IV] will not be evident until after its release."

Ubisoft has announced an agreement with Tom Clancy to acquire all intellectual property rights to the Tom Clancy name for use in video games and ancillary products like related books, movies, and merchandising.

The acquisition frees Ubisoft from the requirement of royalty payments for use of the Tom Clancy brand, which the company expects will help it save at least five million euros (roughly $7.87M) a year. Ubisoft did not disclose the price of the all-cash acquisition.

"The future of our industry lies in our capacity to create and develop brands that captivate consumers and that present myriad of opportunities for the full spectrum of entertainment, be it video games, books, movies or other media," said Ubisoft CEO Yves Guillemot.

"Capitalizing on the strong franchises that we’ve built over the past 10 years, we will take the Tom Clancy game brand to the next level of the global entertainment industry," he added.

Tom Clancy originally began working with video games when he co-founded Red Storm Entertainment in 1996, which developed and published the original Rainbow Six and Ghost Recon titles. The studio was later purchased by Ubisoft, and the Tom Clancy sphere of video games has since expanded to over 35 titles and expansions.

Rockstar and 2K Games parent company Take-Two Interactive is enacting a severance plan for employees fired in the event of a corporate buyout, reports Reuters.

The severance plan will give executives up to 1.5 times their salary with bonus for up to 18 months if they are fired within a year of a change in corporate ownership and control. Non-executive employees will receive up to six months in salary.

Late last month, Electronic Arts proposed an acquisition of Take-Two at a price of $26 per share, or approximately $2 billion total. Take-Two summarily rejected the offer, suggesting that the bid was "highly opportunistic," and made in an attempt to take advantage of the upcoming April 29 release of Grand Theft Auto IV.

"The bid probably created fairly large internal disruption and without a severance plan, employees are worried about losing their jobs," said Janco Partners analyst Mike Hickey. "They want to keep people focused and give them some sort of support."

Atari's largest shareholder and parent company Infogrames has made an offer to buy the remainder of shares and make the company private, GamesIndustry reports.

Infogrames, which already owns a 51 percent stake in Atari, offered $1.68 per share in an effort to retain the company as a wholly-owned property. Atari said that the company's board of directors intends to give the proposal a thorough evaluation.

The news comes just days after the appointment of former Sony executive Phil Harrison as president of Infogrames. Harrison noted that shaping the future of the Atari was one of his major goals in his new position.

Late last year, Atari enacted a plan to restructure its corporate model in the wake of mounting losses and a $3.5 million settlement payout to FUNimation over royalties owed for properties associated with Dragon Ball Z.

It seems that Electronic Arts isn't the only company interested in acquiring Grand Theft Auto publisher Take-Two Interactive.

According to an SEC filing made by Take-Two, the company has received multiple "informal indications of interest in a business combination" since EA failed to acquire the company.

Last Sunday, EA went public with an unsolicited offer to acquire Take-Two for $2 billion. Take-Two rejected the proposal almost immediately, calling the large sum "insufficient." Rival publisher Activision spoke out a few days later, claiming that it had no plans to buy the company.

While no specific details on the interested parties were provided, Take-Two did note that it "has not received any written 'offers' and has not engaged in any substantive discussions with any party (including EA)."