Take-Two settles FTC dispute

Electronic Arts' $2 billion tender offer to Take-Two shareholders may still be just an untoward advance, but the Federal Trade Commission has gotten an ample head start in ensuring the maybe-possibly merged company doesn't violate antitrust regulations. Earlier this month, the FTC reached an agreement with EA that would allow the publisher to proceed with its acquisition after 45 days, regardless of whether the regulatory body had completed its investigation.

Take-Two, however, has had outstanding issues with the FTC. Last week, the Grand Theft Auto IV distributor said it would not comply with the FTC's most recent request for information pertaining to EA's buyout offer. Justifying its position, Take-Two said that the FTC's request would place an undue burden on the company because the solicitation was "unnecessarily broad." Were the FTC to narrow its focus, Take-Two said, the publisher would resume cooperating with the FTC's investigation.

True to its word, Take-Two said today in a Securities and Exchange Commission filing that it has reached an agreement with the FTC that would limit the scope of its information request in relation to EA's acquisition offer. As such, the scheduled hearing for June 24 to resolve the matter in the US District Court for the District of Columbia will no longer be necessary.

"The Company is pleased that a resolution has been reached that should substantially reduce the economic burden on the Company and focus the inquiry in a way that should minimize the distraction to the Company's employees," said Take-Two in its filing. "The Company intends to continue to cooperate fully with the FTC."

Yesterday, EA extended its tender offer to Take-Two shareholders for a fourth time. Take-Two shareholders will now have until July 18 to take up EA's $25.74-per-share offer. To date, approximately 7.9 percent of Take-Two stock had been turned over to EA.