Now that the dust has settled and talks of hostile takeovers and undervalued stock have been seemingly laid to rest, EA and Take-Two Interactive have quietly entered into a confidentiality agreement. The SEC filing indicates that the agreement was entered into through letters sent between Strauss Zelnick, executive chairman of the board of directors of Take-Two, and John Riccitello, chief executive officer of EA on August 17 and August 18. The terms of the filing prohibit both Take-Two and EA from publicly disclosing the status or terms of any discussions or negotiations between the two companies unless either EA or Take-Two has notified the other that they are terminating discussions.

The filing also includes some “forward looking statements” that might transpire as a result of the discussions between the two companies, including the following possibilities: EA will not make any proposal to Take-Two; the two companies will not enter into discussions or negotiations of any type; a transaction will not be entered into, regardless of negotiations or discussions; even if EA and Take-Two agree to enter into a transaction, said transaction may be delayed or may not be consummated.

As a result of this filing, no announcements will be made by either company concerning the status of their discussions and negotiations unless such discussions are terminated or an agreement is reached. We will have to wait quietly and see what transpires.

- Patty Estill