Take-Two Interactive Software Inc.'s [TTWO] self-imposed deadline to advise shareholders on rival game maker Electronic Arts Inc.'s [ERTS] $26 per share, $1.9 billion tender offer comes around Wednesday. We have no doubt Take-Two will come up with a creative way to recommend shareholders tell Electronic Arts to take their offer and shove it, but the question is, what happens after that?

Goldman, Sachs & Co. analyst Mark Wienkes expects there to be more clarity on the situation within the next two weeks. After Wednesday's news, the next focus will be Take-Two's annual shareholder meeting April 10. EA's tender offer is set to expire a day later. Depending on how the tender offer is received, Wienkes writes EA either will close the deal (assuming 85% of shareholders tender), amend the tender, extend it or terminate it.

Though Wienkes says he thinks it's "rational" to expect a higher bid, he emphasizes that the more protracted the process becomes, the less desirable Take-Two becomes since it would have less impact on EA's results for the holiday season. Wienke also says he does not expect much more impact to EA's stock price even if it raises the offer toward the $30 mark. He notes a higher bid may already be priced into the stock and there shouldn't be much impact if it increases the bid or walks away.

There also is debate about how the departure of Electronic Arts chief financial officer Warren Jenson affects the deal. Ben Schachter, an analyst with UBS, wrote in a research note Monday that while the timing of Jenson's departure is "unnerving," EA CEO John Riccitiello is the "driving force" behind the acquisition, and the resignation should have limited impact. Others who have been following the deal don't necessarily agree. - David Shabelman

See March 24 announcement from Electronic Arts
See March 24 post from MarketWatch
See March 24 post from Liberum Research
See March 13 story from Tech Confidential