ERTS, TTWO In Confidentiality Pact On Talks

Electronic Arts (ERTS) disclosed in a filing with the SEC late yesterday that it has signed a confidentiality agreement with Take-Two (TTWO) in regard to talks between the two companies. ERTS said that terms of the agreement prohibit both sides from disclosing the status or terms of negotiations between the two sides unless one side notifies the other that discussions are terminated.

Ergo, Electronic Arts says it “does not intend to make any further announcements regarding the status of any discussions or negotiations with Take-Two unless and until discussions between EA and Take-Two have been terminated or such parties have entered into a transaction.”

Of course, the takeaway here is that the two sides are talking seriously about a deal in which ERTS would buy TTWO. Ergo, TTWO today is up 72 cents, or 2.9%, to $25.18. ERTS is up 60 cents, or 1.3%, to $47.42.

Take-Tw