Take-Two Makes Irrational Purchase

Updated from 4:43 p.m. EST

Take-Two Interactive (TTWO Quote - Cramer on TTWO - Stock Picks) is taking another game developer.

The video-game software publisher announced Monday that it has acquired Irrational Games, the developer behind titles such as Freedom Force and System Shock 2. Take-Two spokesman Jim Ankner declined to say how much Take-Two paid for the developer and whether the deal was in cash or stock or some combination. The deal was closed during Take-Two's just-completed fourth quarter, Ankner said.

Representatives for Irrational Games did not return a call seeking comment.

Early next year, the companies plan to release BioShock, a role-playing shooter game. The title is the first announced game that Irrational Games will release under Take-Two's auspices.

Irrational has 59 employees working out of two studios, one in Boston and one in Australia. Take-Two plans to keep both studios and does not plan to have any layoffs as a result of the acquisition, Ankner said.

Take-Two, which has been struggling financially in recent quarters, is best known for its Grand Theft Auto franchise. In recent years, the company has been trying to diversify beyond Grand Theft Auto into areas such as sports and simulation games, with limited success.

As part of that diversification effort, the company has made a series of studio acquisitions. In November, for instance, Take-Two acquired Firaxis Games, the acclaimed developer of Sid Meier's Civilization.

Shares of Take-Two closed regular trading on Monday up 16 cents, or about 1%, to $18.88.