Take-Two's 2008 annual report reveals that company incurred $11.1 million in costs related to Electronic Arts' hostile takeover bid earlier this year.
The company didn't specify the particulars of the expense allocation, but also noted that part of the expense was related to its strategic review process.
EA aimed to acquire Take-Two
for the price of $25.74 per share, or $2 billion, a value Take-Two would continue to maintain was inadequate. At the time, Board chairman Strauss Zelnick repeatedly said that the company was considering its "strategic alternatives" and entertaining interest from other bidders. No other suitor officially emerged, however.
The bid underwent extra scrutiny
from the Federal Trade Commission, who was believed to be evaluating competition issues particularly in the area of the companies' market-leading sports portfolios.
The FTC later greenlit the possible merger
, and Take-Two had negotiated behind closed doors
with EA, revealing its due diligence to the company under a non-disclosure agreement.
Ultimately, Electronic Arts relinquished its bid
for the company on September 15, after the two parties couldn't reach an agreement on the company's value. EA had always maintained that its offer was time-sensitive and dependent on its ability to acquire revenue from the company's 2008 products alongside Take-Two's future pipeline.
Take-Two recently reported doubling losses
in its fourth quarter, and drastically reduced its outlook for 2009. Electronic Arts didn't meet its sales goals for the year and would need to reduce its portfolio
for next year. The impact of the economic environment alongside recent underperformance is showing in both companies' share prices, with Take-Two down to 8.79 and EA trading at 17.10 as of press time.