Take-Two is known popularly as the creators of the Grand Theft Auto game series and that angle has been played up considerably in the hostile takeover bid by Electronic Arts of the software company. But there’s more going on here, and that is that EA wants to monopolize it’s control of the sports gaming genre. Take-Two creates and markets the popular 2K sports game series, and EA’s sports game franchises like Madden NFL Football, NBA Live and NHL Hockey are the proverbial bread-and-butter of EA’s dominant business model. Taking out it’s main competitor would be a boon for it’s sports game franchise and allow them to further dominate the market.

This article sums EA’s aims up nicely. I particularly like this quote from an analyst as it describes EA’s intent in a concise manner:

“It’s a thorn in their side and they want these guys gone,” Wedbush Morgan Securities analyst Michael Pachter said. “EA’s two choices are to drive Take-Two into bankruptcy or buy them.”

Take-Two has already rejected the offer saying it undervalues the company. I don’t blame them, given that a new version of Grand Theft Auto should be out before summer.