EA Receives Second Anti-Competition Inquiry From FTC

Officials from Electronic Arts have announced that the company has received a second request for information from the U.S. Federal Trade Commission (FTC) over its ongoing attempts to acquire rival publisher Take-Two Interactive. In a statement, Electronic Arts indicated that the company does not believe that its proposed “transaction” with Take-Two Interactive would be anti-competitive. The FTC, though, has not yet reached any conclusions regarding the matter, and has indicated that it needs further information and additional time to conduct its review. Electronic Arts’ own deadline for their now hostile takeover of Take-Two is shortly to run out, after the company extended the milestone from April 11th to 11.59pm EDT on Friday April 18th. The deadline was moved following Take-Two’s alteration of the date of the company’s annual meeting of stockholders and the establishment of a Stockholders Rights Agreement – an act Electronic Arts described as a “poison pill”. With the level of stockholder support for Electronic Arts’ offer still unclear, the situation may be resolved to some degree following Take-Two’s annual meeting today in New York. Electronic Arts, though, has already indicated that it could further extend its deadline if deemed necessary.