Electronic Arts has proposed a purchase of Take-Two Interactive Software, best known for its Grand Theft Auto franchise. This will enable EA to add more mature-rated games to its roster and take out its biggest rival in the sports game arena in the process. EA offered to buy Take-Two for $26 a share in a deal worth about $2 billion, but Take-Two rejected the offer, saying it undervalues the company. The offer, disclosed Sunday, represented a 50 percent premium over Take-Two’s Friday close of 17.36. Take-Two shares soared 55 percent Monday, closing at 26.89, an indication that investors think EA will sweeten the deal.

Source: CNN Money