Electronic Arts Goes After Take-Two

Updated from Feb. 24

Video-games publisher Electronic Arts (ERTS Quote) made a surprise $2 billion hostile bid for its controversial, smaller rival Take-Two (TTWO Quote), sending the target's shares surging.

Should it go through, the purchase of Take-Two may bring the Redwood City, Calif.-based EA a new stable of hit franchises, millions in revenue from sales of the upcoming Grand Theft Auto IV -- set for release on April 29 -- and access to one of the most talented development houses in the industry, Rockstar Games.

But Take-Two's controversial games, its mercurial talent and the company's financial troubles could become much more than expected for EA to handle. ...