Take-Two stock drops following EA pullout

After EA announced that it had finally given up its bid for Take-Two Interactive yesterday, Reuters reports that Take-Two's stock has dropped nearly 30% in early trading this morning. EA's $25.74 hostile bid had been rejected numerous times by Take-Two's board and investors. The stock (as of this writing) is currently down over $5 to around $16.50 per share.

Take-Two chief Strauss Zelnick isn't sweating, apparently, as he maintains that the company has "strategic alternatives." Speculation has that slowing sales of GTA IV may have futzed with Take-Two's negotiating position with EA. Meanwhile, UBS analyst Ben Schachter believes Ubisoft could be waiting for its chance at nabbing the company.

This article was originally published on Joystiq.