SAN FRANCISCO -(Dow Jones)- A report Thursday showed that sales of Take-Two Interactive Software Inc.'s (TTWO) "Grand Theft Auto IV" video game have slowed considerably, which may complicate ongoing talks to buy the company.
Take-Two's GTA IV debuted on April 29, and sales reached a record $500 million in its first week. The New York-based company uses the game's success as proof that Electronic Arts Inc.'s (ERTS) $2 billion bid to buy Take-Two substantially under-values the company.
But new U.S. video game sales data from NPD Data may make it tougher for Take- Two to make that argument much longer.
GTA IV, the company's flagship game, was the 46th best-selling game in August, according to new NPD rankings. That's down from 45th place in July. The slowing sales have also brought fresh concerns that at about 8.5 million sold to date, Take-Two's powerhouse GTA IV may have a tough time meeting sales expectations.
"As a must-have game, we expect GTA IV sales to continue at an energetic pace, " a Take-Two spokeswoman said. An Electronic Arts spokesman had no comment for this story.
Electronic Arts had bid $25.74 a share for Take-Two in April, but let the bid expire amid waning interest from shareholders. Both sides continue to talk about a deal, however.
Overall, sales of video games and consoles grew 9% in August to $1.1 billion, and are up 32% for the year, NPD said. The growth suggests U.S. video game sales continue to feel pressure from macro-economic conditions.