Take-Two: new FTC requests too broad and costly

Another roadblock has appeared in the FTC’s ongoing probe into EA’s hostile takeover bid for Take-Two Interactive. Take-Two has declined to comply with a subpoena and civil investigative demand from the FTC, saying that the new requests are too broad and costly. More in the full article.

While Electronic Arts has so far been complying with information requests from the Federal Trade Commission (FTC), Take-Two Interactive has reacted rather strongly to new information requests from the FTC.

The FTC has recently issued Take-Two a subpoena and civil investigative demand (CID) requesting more info in connection with EA’s hostile bid for the company. Take-Two has yet to comply with these new requests.

In an explanation sent to a Washington D.C. U.S. District Court, Take-Two called the subpoena and CID “unnecessarily broad”. Take-Two also said that although it will comply with the FTC’s prior requests, it would fight against these new ones which would “entail unacceptable additional expense to the Company.”

A hearing has been assigned by the D.C. Court for June 24. There, a judge will have to decide if Take-Two is indeed required to comply with the FTC’s requests. Take-Two has stated that if they can’t come to a settlement with the FTC, they intend to oppose the FTC’s petition.

Via Reuters