EA, a computer games business, has officially ended takeover talks with Rockstar owners Take-Two Interactive. The two American games publishers had been in discussions over a possible takeover of Take-Two by EA, after the latter had agreed to drop a $2 billion (£1 million) hostile takeover bid.

EA, a computer games business, has officially ended takeover talks with Rockstar owners Take-Two Interactive. The two American games publishers had been in discussions over a possible takeover of Take-Two by EA, after the latter had agreed to drop a $2 billion (£1 million) hostile takeover bid.

EA decided to walk away from the deal when the two companies were unable to come to an agreement.

The cause for the collapse in negotiations appears to be the popular game Grand Theft Auto IV.

Although the PC version is due out later this year, the fact that sales of the console versions are now tailing off could well mean that Take-Two is now worth less to EA.

Owen Mahoney, EA’s senior vice president of corporate development said of the decision, “It was a well-informed decision.”

He added: “We don’t need Take-Two to make EA successful.”

While Take-Two boss Strauss Zelnick added that they were still “actively engaged” in talks with unnamed parties to offer “strategic alternatives” to EA, it seems as if Take-Two and Rockstar will be retaining their independence for the foreseeable future.