Electronic Arts Inc. ("EA") (NASDAQ:ERTS) today announced that while EA continues to have a high regard for Take–Two´s creative teams and products, after careful consideration, including a management presentation and review of other due diligence materials provided by Take–Two Interactive Software Inc. ("Take–Two") (NASDAQ:TTWO), EA has decided not to make a proposal to acquire Take–Two and has terminated discussions with Take–Two.
John Riccitiello, Chief Executive Officer of EA, said: "EA is tracking toward a record breaking year. We´re launching 15 new games including award–winners like SPORE, Dead Space and Mirror´s Edge, great new titles from the Sims, new family titles with Hasbro, and the highest quality slate of EA SPORTS titles on this generation of consoles. We´re also expanding beyond our core business with a series of direct–to–consumer launches including Warhammer Online."
About Electronic Arts
Electronic Arts Inc. (EA), headquartered in Redwood City, California, is the world´s leading interactive entertainment software company.
Founded in 1982, the Company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet. Electronic Arts markets its products under four brand names: EA SPORTS(TM), EA(TM), EA SPORTS Freestyle(TM) and POGO(TM). In fiscal 2008, EA posted GAAP net revenue of $3.67 billion and had 27 titles that sold more than one million copies. EA´s homepage and online game site is www.ea.com. More information about EA´s products and full text of press releases can be found on the Internet at http://info.ea.com.
Forward–Looking Statements
Some statements set forth in this release contain forward–looking statements that are subject to change. Statements relating to future expectations and statements in the future tense are forward–looking statements. These forward–looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward–looking statements. Some of the factors which could cause the Company´s results to differ materially from its expectations include the following: timely development and release of Electronic Arts´ products; competition in the interactive entertainment industry; the Company´s ability to successfully implement its reorganization plans; the consumer demand for, and the availability of an adequate supply of console hardware units (including the Xbox 360® video game and entertainment system, the PLAYSTATION®3 computer entertainment system and the Wii TM); consumer demand for software for legacy consoles, particularly the PlayStation 2; the Company´s ability to predict consumer preferences among competing hardware platforms; the impact on the Company of past and potential future acquisitions; consumer spending trends; the seasonal and cyclical nature of the interactive game segment; the Company´s ability to manage expenses during fiscal year 2009 and beyond; the Company´s ability to attract and retain key personnel; changes in the Company´s effective tax rates; the performance of strategic investments; adoption of new accounting regulations and standards; potential regulation of the Company´s products in key territories; developments in the law regarding protection of the Company´s products; fluctuations in foreign exchange rates; the Company´s ability to secure licenses to valuable entertainment properties on favorable terms; the general health of the U.S. and global economy; and other factors described in the Company´s Annual Report on Form 10–K for the year ended March 31, 2008 and Quarterly Report on Form 10–Q for the quarter ended June 30, 2008. These forward–looking statements speak only as of the initial date of this release. Electronic Arts assumes no obligation and does not intend to update these forward–looking statements.
