FTC OK with EA/Take-Two union

On Monday, Electronic Arts allowed its longstanding offer to acquire Take-Two Interactive to expire. As that was happening, the Federal Trade Commission handed down its ruling as to whether or not the acquisition would have violated antitrust laws. In four letters to legal representatives of Take-Two and EA, the FTC indicated it had no reason to stand in the way of such a merger.

"Upon further review of this matter, it now appears that no additional action by the Commission is warranted at this time," the FTC said in its letters.

Even though EA rescinded its previous offer, that approval might not go to waste. Take-Two on Monday said it expected to enter formal negotiations with EA management "to evaluate strategic alternatives."

However, those negotiations turn out, the end result may be months away. EA said on Monday it no longer believed it could integrate Take-Two into its corporate structure before the crucial holiday season.

The EA-Take-Two acquisition saga has been dragging on since February. Before EA made its $26 per share offer public, Take-Two stock had been trading for $17.36. The Grand Theft Auto publisher's stock closed the next day at $26.89, but months of EA extending its offer and Take-Two execs steadfastly refusing to accept it have worn a bit on investor enthusiasm for the stock. As of press time, Take-Two Interactive stock was trading at $24.38.