Following publisher Take-Two Interactive Software's recommendation that its stockholders deny a hostile takeover attempt by rival publisher Electronic Arts, EA has submitted a slightly amended offer to the company's shareholders.

Take-Two Interactive is the owner of numerous popular properties, such as Grand Theft Auto, Max Payne, and BioShock, and development studios, including the various branches of Rockstar, 2K Boston, 2K Marin, 2K Czech, and 2K Australia.

While the basic premise remains the same--a payout of $26.00 per share--Electronic Arts extended the deadline by a week to reflect Take-Two's week-long delay of its annual stockholder meeting, which is now scheduled for April 17. The offer now expires on April 18, 2008.

According to EA, the offer of $26.00 per share represents a 64% premium over Take-Two's closing stock price on February 15, which was the last trading day before EA sent its revised proposal to Take-Two. As of this writing, Take-Two's stock is valued at $25.55 per share.

The other major shift in EA's offer concerns Take-Two's so-called "poison pill" plan, which adopted on March 24 to prevent a hostile takeover at what... Read more

Speaking at the 2008 Smid Cap Conference, Take-Two chairman Strauss Zelnick mentioned massively multiplayer online editions of BioShock and Civilization as examples of the company's "potential untapped opportunities."

Following the release and strong sales performance of 2K Boston and 2K Australia's story-driven underwater shooter BioShock (PC, X360) last summer, Zelnick noted Take-Two's intent to transform BioShock into an ongoing franchise.

A sequel to BioShock, announced earlier this month and developed by 2K Marin with the involvement of creator Ken Levine, is slated to arrive on unspecified platforms between August and October of 2009.

As initially reported by MTV Multiplayer, other opportunities for Take-Two, which today told its stockholders to reject a hostile takeover bid from Electronic Arts, include a film adaptation of BioShock as well as mobile phone iterations of both BioShock and Carnival Games.

Responding to Electronic Arts' attempt at a hostile takeover, Take-Two Interactive's board of directors has advised its stockholders to reject EA's buyout offer of $26 per share.

In a statement released today, Take-Two--which owns such beloved properties as Grand Theft Auto, Max Payne, and BioShock--labeled the offer as "inadequate in multiple respects and contrary to the best interests of Take-Two’s stockholders."

Though this marks the second time that Take-Two has officially spurned EA's unsolicited attempts to acquire the publisher, the company revealed that it is interested in business agreements with EA and other parties.

While now open to discussing possible business combinations, Take-Two affirmed its intent to remain independent and stated that it will not enter into negotiations until after the release of Grand Theft Auto IV (PS3, X360) on April 29.

Labeling Grand Theft Auto as "one of the most valuable and durable franchises in the interactive entertainment software industry," Take Two noted its belief that "the full commercial potential of [Grand Theft Auto IV] will not be evident until after its release."

Publisher Take-Two dodged questions about a possible sequel to the Max Payne franchise of action titles during a financial conference call held this afternoon.

"It's a little early to comment on any particular title but we have a lot of interesting things going on," a Take-Two representative said when asked about the potential of future Max Payne titles. "What's the saying? We will sell no wine before its time."

The last entry in the Remedy-developed franchise, Max Payne 2: The Fall of Max Payne, arrived on PC, PlayStation 2 and Xbox in 2003. An adaptation of the series is currently being filmed for cinematic release, with Mark Wahlberg starring as Max Payne himself and Mila Kunis as Mona. The movie is set to be released this October.

During the call, Take-Two, which owns the Max Payne property, made repeated references to reviving past notable Rockstar properties, though it failed to specify any particular franchise.

Publisher Take-Two Interactive today officially confirmed that a sequel to 2K Boston and 2K Australia's underwater shooter BioShock will arrive during the company's fiscal fourth quarter in 2009.

Take-Two's fourth fiscal quarter runs from August through the end of October.

BioShock 2 is under development by the Novato, California-based studio 2K Marin. The new development house is rumored to consist of several former 2K Boston and 2K Australia employees.

The publisher also announced that BioShock creator Ken Levine will be involved in the development of the sequel, though his role on the project was not specified. Levine's home studio of 2K Boston is rumored to be working on a new X-COM title.

"[Ken Levine] is critical to BioShock," said a Take-Two representative.

No platforms were announced. The game will likely make an appearance on both Xbox 360 and PC, and comments made earlier in the year by 2K Games president Christopher Hartmann indicate the game could also be released on PlayStation 3.

Take-Two Interactive today clarified a number of release dates for its upcoming titles.

The publisher revealed that Gearbox Software's Borderlands (PC, PS3, X360) and 2K Czech's Mafia II (PC, PS3, X360) are positioned for release sometime in Take-Two's 2009 fiscal year, which runs from November 1, 2008 through October 31, 2009.

The new date marks a delay for the co-op friendly Borderlands, which was originally slated to arrive within Take Two's 2008 fiscal year. Prior to today, no release date had been announced for Mafia II.

Additionally, Rockstar San Diego's Midnight Club: Los Angeles (PS3, X360) was confirmed for release in the company's FY2008 fourth quarter, pinning the title's release window between August 1 and October 31, 2008.

The game was originally aimed for a spring 2008 release, but was delayed to prevent competition with Rockstar North's Grand Theft Auto IV (PS3, X360).

Rockstar and 2K Games parent company Take-Two Interactive is enacting a severance plan for employees fired in the event of a corporate buyout, reports Reuters.

The severance plan will give executives up to 1.5 times their salary with bonus for up to 18 months if they are fired within a year of a change in corporate ownership and control. Non-executive employees will receive up to six months in salary.

Late last month, Electronic Arts proposed an acquisition of Take-Two at a price of $26 per share, or approximately $2 billion total. Take-Two summarily rejected the offer, suggesting that the bid was "highly opportunistic," and made in an attempt to take advantage of the upcoming April 29 release of Grand Theft Auto IV.

"The bid probably created fairly large internal disruption and without a severance plan, employees are worried about losing their jobs," said Janco Partners analyst Mike Hickey. "They want to keep people focused and give them some sort of support."

Update: Take-Two's board of directors has rejected Electronic Arts' proposal.

"After careful evaluation, the Board has determined that EA's proposal substantially undervalues Take-Two's robust and enviable stable of game franchises, exceptional creative talent and strong consumer loyalty," said the company. "We believe EA's unsolicited offer is highly opportunistic and is attempting to take advantage of our upcoming release of Grand Theft Auto IV, one of the most valuable and durable franchises in the industry."

"Electronic Arts’ proposal provides insufficient value to our shareholders and comes at absolutely the wrong time given the crucial initiatives underway," added executive Take-Two chairman Strauss Zelnick.

In what Zelnick calls the "only prudent and responsible" course of action, the board has decided to consider EA's proposal again on April 30, the day after Grand Theft Auto IV's release.

Original story: Publishing giant Electronic Arts last Tuesday proposed an acquisition of fellow publisher Take-Two at a price of $26 per share, or approximately $2 billion total.

Electronic Arts claims the proposal is more than fair, quoting the $26 share price as a 64 percent increase over Take-Two's recent stock value.

"There can be no certainty that in the future EA or any other buyer would pay the same high premium we are offering today," said EA CEO John Riccitiello.

The Take-Two umbrella includes the publishing labels 2K Sports, 2K Games, and Rockstar Games. Together the labels encompass such hit properties as Rockstar Games' Grand Theft Auto, BioShock 2K Boston's Bioshock, and Firaxis' Sid Meier's Civilization.

The potential acquisition would put sports studios 2K Sports and EA Sports under the same roof, possibly eliminating the already-waning balance of sports franchise competitiveness.

The proposal also reveals that Take-Two recently declined an offer of... Read more

Publisher Take-Two Interactive Software may be the target of a $1.5 billion buyout offer from entertainment conglomerate Viacom, according to "industry rumors" reported by MCV.

If true, the move would mark the latest in the recent rash of video game buyouts and mergers, the most notable of which was Activision Blizzard, the unexpected $18.9 billion combination of major publisher Activision with Blizzard Entertainment owner Vivendi Games.

The Take-Two umbrella encompasses multiple successful franchises and their respective developers, including the crime-life simulator Grand Theft Auto, underwater story-driven shooter BioShock, turn-based city builder Sid Meier's Civilization, along with the Midnight Club and Carnival Games properties.

The company also publishes titles based on the Go, Diego, Go! and Dora the Explorer brands, which are owned by Viacom subsidiary Nickelodeon. The varied... Read more

Take-Two Interactive Software, parent company of 2K Games and Rockstar Games, today announced that it has acquired Czech Republic based developer Illusion Softworks. The studio will join the 2K Games publishing label as 2K Czech.

Illusion Softworks is behind such games as Hidden & Dangerous, Mafia, and Vietcong, some of which were distributed by Take-Two's various publishing labels. The company is currently working on Mafia 2 for PC, PlayStation 3, and Xbox 360.

"We have an excellent working relationship with 2K Games and the utmost respect for them," said 2K Czech Petr Vochozka. "We are pleased to become a 2K studio and are confident that this new partnership will strengthen our current and future projects."

Exactly six weeks after Rockstar Games' Manhunt 2 (PS2, Wii, PSP) was refused British Board of Film Classification rating and thus blocked from sale in the UK, parent company Take-Two Interactive has appealed the board's decision. The company filed the appeal with the Video Game Appeals Committee yesterday, the deadline to take such action.

The VAC will appoint an appeal date and a panel to judge the appeal. If the appeal is upheld, the game will be given a rating and permitted to be sold on store shelves. "Rejecting a work is a very serious action and one which we do not take lightly," said BBFC director David Cooke when the board's decision was announced. "To issue a certificate to Manhunt 2, on either platform, would involve a range of unjustifiable harm risks, to both adults and minors."

News of the appeal was first reported by UK publication MCV.

Update: Take-Two released the following statement to Shacknews: "Take-Two Interactive Software, Inc. confirmed today that Rockstar Games has appealed the British Board of Film Classification (BBFC) decision that prohibited the release of any version of Manhunt 2 in Britain."

Looks like the digital distribution world is getting even a little more interesting. Not very long ago we saw Triton shut down and 3DR/2K announce they were shipping retail boxes to all Prey customers. Chris even got sassy and wrote an article about recent digital distribution fun. Well it didnt take long for 2K to hop aboard another digital train. Choo choo! 2K Games and Valve Software will now be working together:

October 24, 2006 -- 2K, a publishing label of Take-Two Interactive Software, Inc. (NASDAQ: TTWO), and Valve today announced an agreement to bring a collection of 2K PC games to Steam®. "With titles from legendary designer Sid Meier and 2K's world renowned developer, Firaxis Games, 2K is one of today's foremost publishers," said Gabe Newell, co-founder and president of Valve. "Through this initial agreement with 2K, Steam's game library expands to include four great strategy games. We look forward to delivering more from 2K in the future."

PC versions of Sid Meier's Civilization IV, Sid Meier's Civilization III, Shattered Union and Sid Meier's Pirates! will be available later this week via Steam. Details regarding future 2K titles available via Steam will be announced at a later date. [more]

Publisher Take-Two is taking some heat again, though this time it is entirely unrelated to the Hot Coffee issue that has been a thorn in the side of subsidiary Rockstar Games for so long. Today Take-Two issued a brief statement indicating that it is under "informal investigation" by the Securities and Exchange Commission, though it did not disclose the reason for the investigation.

Take-Two Interactive Software, Inc. ...has received notice from the Securities and Exchange Commission that it is conducting an informal non-public investigation into certain stock option grants made by the Company from January 1997 to the present. Prior to receiving the notice, the Company had initiated an internal review of the Company's option grants, led by a committee consisting of independent board members who have retained independent legal counsel and accountants to assist in the review. The Company intends to respond to the SEC's information request and to fully cooperate in the informal investigation.

Most likely, the investigation is regarding potential manipulation of prices and issue dates of stock options given to executives, which would have artificially inflated the value of those options. Tech news organization CNET Networks, owner of gaming press site GameSpot, is facing similar investigation. This is not the first time Take-Two has had a run in with the SEC. Last year, the publisher was fined $7.5M by the SEC following a four year investigation into alleged fraudulent accounting practices. At time of writing Take-Two stock is down 7.52% from its previous close, to $9.34.

Though Take-Two and Rockstar have had one of the best selling games of recent memory in Grand Theft Auto: San Andreas (PS2, Xbox, PC), the past year has been undeniably rocky for the closely related companies. GameDaily claims to have obtained a list of key employees which have reportedly left the company in the last 12 months, though it is unclear whether those alleged departures will hurt the company or will work towards necessary cost-cutting.

Last year, Electronic Arts brokered a deal with the NFL that saw EA gain exclusive rights to the publishing of NFL-branded video games. Take-Two, EA's biggest competitor in the sports market responded with a deal granting Take-Two the exclusive third party rights to Major League Baseball games. Rumors had it that EA followed up with an attempt to get exclusivity with the National Hockey League. It seems that rather than going to the NHL itself, however, EA went to the NHL Player's Association. The NHLPA agreed without consulting with the NHL, and the NHL wasn't too pleased about that. "I think choice is important," said NHL marketing VP Brian Jennings. "We were not comfortable going with an exclusive model. We think having two highly motivated partners in this space, three with Sony, means more compelling games for our fans." The NHL demanded Take-Two be allowed to get in on the deal as well.

But the EA deal immediately drew the ire of the league brass, who felt all parties were better off with multiple licensees, especially because the NHL 2K series of games from Take-Two Interactive Software Inc. has generally been better received by the gaming community.

The fact that the union had commanded a premium for exclusivity, with none of that extra revenue going to the league, also did not go over very well. In the video game category, leagues and players associations traditionally split royalties of 14 to 16 percent down the middle. But by being first to the table with EA, the NHLPA positioned itself to collect the majority of revenue from the category.

Oddly, if the current situation were to continue, EA's hockey game could use all real player names, but no league logos or team names; Take-Two's game could use team names and logos, but no player names. However, faced with this kind of outcome, it's unlikely either company would be particularly thrilled. With the NHL and the NHLPA split on which company they support, expect to see third-party rights go to both EA and Take-Two, with first-party rights (ie, games made by console manufacturer Sony) uncontested.

Take-Two Interactive Software has just announced that it has acquired Firaxis Games, the development company behind games like Sid Meier's Pirates!, Alpha Centauri, Sim Golf and the recently released Civilization IV. Pirates! and Civilization IV had been published by Take-Two's 2K Games label, and 2K Games will continue to be home to future Firaxis titles.

"Firaxis Games, founded and led by industry executive Jeff Briggs, and inspired by the genius of Sid Meier, is among the most innovative and successful development studios in the industry," said Christoph Hartmann, Managing Director of 2K Games. "The Firaxis and 2K Games union is a strong fusion of creativity and vision that will continue to result in the development of innovative games with mass appeal. We're excited to welcome Jeff, Sid and the entire Firaxis team to the 2K family."

"This is a tremendous opportunity for Firaxis," said Jeff Briggs, Founder, President and CEO of Firaxis Games. "2K Games is an energetic label that shares our goals and vision for making great games that stand the test of time. We are pleased to be associated with the energy and commitment to quality work that 2K represents, and look forward to a great future together."

Some exciting news for the Grand Theft Auto fans, Rockstar Games has just announced Grand Theft Auto: Sin City. Interestingly enough, the new game will mix Grand Theft Auto gameplay with Frank Miller's Sin City universe. Here's a bit from the press release

Sin City creator Frank Miller remarked, "I've been a fan of Rockstar since the first Grand Theft Auto game. It was clear to me that they have the right attitude, and with Grand Theft Auto 3 they created a modern crime masterpiece. I felt honored when they approached me to collaborate on Grand Theft Auto: Sin City, and I am positive that fans of comics and games alike will agree that this is a match made in heaven."

Kelly Sumner, Take-Two Interactive Software's Chief Executive Officer added, "The Booze, Broads and Bullets' atmosphere of Sin City was an absolute perfect match for the Grand Theft Auto franchise. Fans of the series will be thrilled when they encounter Marv, Hartigan, and the lovely Nancy Callahan, all lovingly rendered in stunning 3D. And of course, Lazlow will be on the radio, having shipped over from Liberty City."

Though the official site is down at the moment, we grabbed some images from it earlier, you can find those here. Grand Theft Auto: Sin City will be released October 21st on the PS2.

(Update: April Fools :)