There are a little over 12 hours to go before EA's $25.74 per share deadline for Take-Two ends at 11:59PM EDT. Analyst Michael Pachter told Forbes (via GamePolitics) that EA started off too high with its $26 a share offering and should have started around $22 back then. Meanwhile, analyst Colin Sebastian tells the San Francisco Chronicle he believes the deal is going to get "hammered out," possibly at a higher price.

As of this writing, Take-Two's stock is trading around $27 per share, but EA could be buying up all those shares with its billion dollar loan for all we know. Word on the street is that something could happen Monday, but the only certainty right now is tonight's deadline.

Take-Two is appealing to stockholders not to consider EA's early-morning all cash tender offer, which pitched a purchase of the company's stock at $26 a share (a 4.4% premium over yesterday's closing price). The Take-Two board states it will review and consider EA's offer and, within 10 business days, advice stockholders of the board's position on the matter along with its reasoning.

The 10 day "please wait" request from the Take-Two board is still way within the April 11 deadline given by EA on its $26 per share offer to stockholders. EA wants Take-Two and it wants it bad.

With Take-Two Executive Chairman Strauss Zelnick having thoroughly rejected EA's initial buyout offer, the Madden and Burnout publisher has redirected its corporate Katamari at Take-Two shareholders. EA has announced the commencement of a tender offer for all of the currently outstanding shares of common stock of Take-Two Interactive Software at $26 per share. Valued at approximately $2 billion, the offer reportedly represents a 64% premium over Take-Two's closing stock price on February 15, the company's last trading day before EA began its increasingly aggressive financial courtship. Compared to Wednesday's stock price, it constitutes a 4.4% premium.

Barring extension, the tender offer is good until midnight EST on Friday, April 11, 2008. EA CEO John Riccitiello described the offer as "a great opportunity for Take-Two shareholders" and as a a way to "maximize the value" of their investment. "For EA shareholders, the combination would add additional intellectual properties to our already strong portfolio and welcome Take-Two's talented creative teams to the great development organization we've built at EA," he concluded.

Will shareholders deem this offer welcomed financial assistance or unwanted financial insistence? We'll have to wait and see.

Apparently, one merger per decade is enough for Sega. Despite falling on some tough financial times recently, Sega has declared that it is decidedly not interested in getting bailed out by some generous big-time buyout (not that anyone else was necessarily interested, mind you).

In an interview with Reuters, Sega Sammy CEO Simon Jeffrey said his company isn't eager to ride the industry's recent wave of consolidation. "That's not an area we want to play in right now," he said. "We have no interest in being acquired, we are very happy with our position right now."

Buoyed by extremely strong sales of Mario & Sonic at the Olympic Games, Jeffrey seems perfectly content with his company's current sixth-place position in the game publisher rankings. "There is plenty of room for smaller companies to be successful and profitable in this business," he said. "You don't have to be number one or number two. You can be number six very happily," Jeffrey said. Chant along with us everybody: We're number six! We're number six!

Take-Two Executive Chairman Strauss Zelnick continues to hold the line against EA's buyout offer, repeating once again the company still isn't interested. In a Q&A with The Hollywood Report, Zelnick believes that consolidation is likely to continue in the industry, but he would like Take-Two to remain an "independent company."

We'll have to wait and see if it's just lip service, but Zelnick actually says a few things that stray from the well-paved path we've seen from EA and (ever-increasingly) Activision. He finds pride in the progress made over the last 10 months since taking over the company and then commits the video game executive version of shock-and-awe by saying, "Does consolidation create better games for consumers? Does it create better careers for the creatives? Those questions are just as important. If all stakeholders aren't taken care of, then none of the stakeholders will benefit." If Take-Two survives what some analysts say is the inevitability of an EA buyout, and Zelnick sticks with that line of thinking, we may have to send him a Valentine's Day card next year. We'll have to find out if he prefers flowers or chocolates?

[Via GameDaily]

Last week, Electronic Arts CEO John Riccitiello revealed an offer put forward to Take-Two Interactive executive chairman Strauss Zelnick to buyout T2 for nearly $2 billion. Zelnick expediently and publicly shot down the offer, though this battle of the peculiar last names was far from over -- since then we've heard that other companies took interest in T2 after EA was shot down, though certain industry analysts believe EA will eventually win out. Yesterday brought news of a new player on the field that could tip the battle in EA's favor -- Enter: Jack Thompson!

Yes, everyone's favorite Floridian moralist (and T2 shareholder) recently threw his support behind Electronic Arts in an impassioned letter, saying he would help "evict the Zelnick Trojan Horse from within Take-Two's corporate walls". We think that EA and J.T. would be strange bedfellows, given Thompson's denunciation of Sims 2 a few years back -- though his uncustomary defense of Mass Effect might have rebuilt that once-burnt bridge. How about it, EA? Is your raid on Take-Two LFM?

Like that hot catholic school girl with a penchant for acting tough, everyone seems to want a piece of Take-Two these days. The Associated Press is reporting on a recent SEC filing in which the company reveals its been approached with a few "informal indications of interest in a business combination" since EA's unsolicited buyout offer earlier this week. It makes sense ... after all, when if the most popular guy in school (read: EA) gets turned down by a relatively popular girl (read: Take-Two), then everyone else suddenly thinks they have a chance with her.

Like that goth girl with the spiked choker and way too much black mascara, though, Take-Two is acting like it doesn't want the attention. The filing goes on to say that the company "has not engaged in any substantive discussions with any party (including EA) with respect to a business combination." At least they're being direct about their lack of interest. Everyone knows the best way to ruin a business rep is by being a merger tease.

Apparently, it didn't take them very long to consider Electronic Arts' somewhat hostile buyout proposal -- Take-Two's Board of Directors just responded to the offer with a press release of their own, stating that EA CEO John Riccitiello's proposal was "inadequate in multiple respects and not in the best interests of Take-Two's stockholders."

While EA's proposal listed Grand Theft Auto IV as a primary reason for the merger, as Riccitiello claimed EA could lend their help during the game's quickly approaching release, Strauss Zelnick, Take-Two's executive chairman, listed GTAIV as the primary reason why they wouldn't want to merge at this point in time, fully expecting to increase their overall value when the game hits store shelves come April 29.

Zelnick's laundry list of reasons why the buyout wouldn't benefit his company can be found on the press release. For now, let us rejoice in the postponement of the seemingly inevitable future where one superconglomerated gaming publisher/developer controls all game releases on the planet.

Update: MTV Multiplayer's Stephen Totilo just had a chat with industry guru Michael Pachter, who claims that this probably isn't the end of the ordeal, and that EA will eventually get their way -- though it might not happen for a while.

Not one to miss out on a gaming industry trend as hot as corporate synergy, Electronic Arts recently proposed an acquisition of Take-Two Interactive Software for $26 a share (nearly a 63 percent premium to their current stock value) -- for a grand total of approximately $2 billion.

Before you start feverishly fantasizing about a Bioshock/Crysis mash-up, you should know that Take-Two's executive chairman, Strauss Zelnick, shot down the proposal upon receiving it last Tuesday. Attempting to go over the bossman's head, EA CEO John Riccitiello made his proposal public, hoping that Take-Two shareholders will find the offer more attractive than Zelnick initially did.

EA intends to keep the proposal on the table to give Take-Two's board of directors "further time to consider it," obviously hoping to force Zelnick's hand. Whether or not this strategy will work, we imagine we'll find out in the next few days. We'll keep you updated as the situation develops.

Update: Take-Two's Board of Directors have considered the offer, and politely refused. Check out the full story for Zelnick's reasoning behind shooting down the proposal.

Did you hear the one about Microsoft buying Unreal Engine developer Epic Games for one billion dollars? The rumor stems from the latest issue of GamePro magazine, and while not flat-out denying the rumor, Epic VP Mark Rein did has some choice words.

In an email to Develop, Rein said, "I have not seen the actual GamePro article but if they're going to make predictions about us selling Epic we would prefer if they started at $2 billion, because we don't want anyone thinking that we're cheap," followed by a smile-inducing emoticon. A more tangible bit of Epic Games speculation is that Gears of War 2 will be unveiled at GDC this week.

[Via X3F]

SCi shareholders must be celebrating like the Munchkins of OZ after Dorothy dropped a house on the Wicked Witch of the East over the resignations of the company's executive board -- shares rose 44% on the news. The company's stock plummeted last week over the news that SCi had taken itself off the market for a buyout, causing investors to call for the heads of the executive board.

The board officially saw the resignation of CEO Jane Cavanagh, Managing Director of Publishing Bill Ennis and Managing Director of Studios Rob Murphy; all resignations were effective immediately and former Corporate Development Director of EA Phil Rogers is now the chief executive. SCi Chairman Tim Ryan says the company needs to restore faith and trust in investors by "under-promising and over-delivering." Meanwhile, SCi will strap on the stilettos and start walking the streets again in search of a potential suitor -- maybe it'll fight for territory with Codemasters on the corner.

SCi Entertainment, parent company of Eidos, is under assault as investors demand the resignation of top executives. The Times reports things crumbled like a booby-trapped tomb after the company's stock plummeted last week following the announcement that management was pulling out of buyout talks; making matters worse was the discovery that SCi borrowed £30 million ($59 million) just to stay afloat until the end of the year.

Despite SCi having a recent hit with Kane & Lynch: Dead Men, the announcement that several major titles -- including the latest Tomb Raider -- are not releasing until holiday '08 is causing concerns about the company's financial situation. We'd make fun of how SCi managed to screw things up this badly during a time of record industry growth, but Atari is still light-years ahead of them in that department.

[Via GI.biz]

Folio Magazine, a magazine about the magazine industry, has as their cover story for May "Ziff's Last Stand." An in-depth look at how the once great magazine empire is falling apart like a leper. Sure, it's still functional, but it isn't looking too pretty anymore. It's no secret that the games division has been up for sale with no buyers. The article lays out in no uncertain terms that the relevance of game magazines is on the decline and uses Ziff Davis' issues as the poster-child of the future to come.

The prime example Folio uses is a scuffle between Edelman (a major PR firm) and an editor of PC Magazine. The battle concerned Senior VP at Edelman, Steve Rubell, publicly stating that he throws out his free subscription to the magazine. For any gaming media, when the PR guys stop reading your stuff, you can kiss access, interviews, information and general livelihood goodbye. And, in what really is the cherry on this story, the whole thing played out online.

According to the article, buyers of the ZD game division are actually interested in 1UP, the company's online portal and its 13 million monthly visitors. 1UP currently competes against Gamespot and IGN's 20 million monthly visitors. The path sounds pretty solid at this point. The magazines will continue to lose readers and relevance and, if the staff survives, will probably be transferred to online.

[Via GameSetWatch]