Two Massive Video Game Makers May Merge Video game giant Electronic Arts has offered to buy Take-Two Interactive Software, maker of "Grand Theft Auto." If successful, the company will become the largest sports game maker in the world.
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Two Massive Video Game Makers May Merge

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Two Massive Video Game Makers May Merge

Two Massive Video Game Makers May Merge

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MADELEINE BRAND, host:

This is DAY TO DAY. I'm Madeleine Brand.

In the world of video games the letters M and A are usually associated with ratings.

(Soundbite of audio)

Unidentified Announcer: Rate M for Mature.

BRAND: And A stands for Adult. Video games rated M or A are supposed to mean N and O, as in no for young gamers. This weekend the letters M and A took on a different meaning, as in mergers and acquisitions. Electronic Arts, they're the people behind the hugely successful Madden football games. It's better known as EA, and it wants to be the world's biggest gaming company. So, it has made a multibillion dollar bid to acquire Take-Two Entertainment. Take-Two is famous for the bloody "Grand Theft Auto" series.

(Soundbite of audio)

Unidentified Announcer: "Grand Theft Auto," rated M for Mature.

BRAND: And someone who didn't need to be reminded of that, the chief executive of Electronic Arts. It already dominates the sports gaming world and the Madden series, which is rated E for Everyone. On a conference call this morning, EA's chief said this deal would give his company the best M-rated content, too.

This is all part of a battle to be the world's biggest video game company. EA is trying to stop a company called Activision, which recently shelled out $18 billion to acquire another video game maker.

So as far as this merger is concerned, Take-Two has rejected EA's takeover offer, even though EA is offering 50 percent more than the current share price. And part of the reason for that is April 29 is the debut of "Grand Theft Auto 4."

(Soundbite of audio)

Unidentified Announcer: "Grand Theft Auto," rated M for Mature.

BRAND: Okay. We get it. Anyway, the latest "Grand Theft Auto" is expected to be one of the biggest video game hits of the year, which could send Take-Two's stock price soaring.

(Soundbite of music)

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