Following approval of an amendment to Take-Two’s incentive stock plan at its 2008 annual stockholders meeting yesterday on April 17, Electronic Arts today announced that it is dropping the price of its offer from $26 to $25.74 per share. Additionally, the offer itself, which was set to expire today, has been extended until May 16.

According to EA, 6,432,787 shares of Take-Two had been tendered in and not withdrawn from the tender offer as of 5:00 p.m. EDT on April 17. The number represents approx. 8.3 percent of the company’s outstanding shares.

Unsurprisingly, Take-Two’s official stance on the offer hasn’t changed, with the company’s Board of Directors noting in a statement that EA’s proposal “undervalued the company at $26 per share, and it certainly undervalues Take-Two at $25.74.”

EA Extends Take-Two Tender Offer Expiration Date to May 16, 2008

Offer Price is $25.74 per Share, Reflecting Additional Shares to be Issued by Take-Two

REDWOOD CITY, Calif.—(BUSINESS WIRE)—Electronic Arts Inc. (”EA”) (NASDAQ:ERTS) today announced that it has extended its tender offer for all of the currently outstanding shares of common stock (including the associated preferred stock purchase rights) of Take-Two Interactive Software, Inc. (”Take-Two”) (NASDAQ:TTWO) to 11:59 p.m., EDT on May 16, 2008. The tender offer was previously set to expire at 11:59 p.m., EDT, on April 18, 2008. EA also amended its offer to reflect a price of $25.74 per share. The price takes into consideration additional shares to be issued to Zelnick Media following stockholder approval of the amendment to Take-Two’s incentive stock plan at its 2008 annual stockholders meeting on April 17.

Valued at approximately $2 billion in cash, EA’s aggregate consideration for Take-Two shares remains unchanged.

EA continues to believe that the offer price is full and fair, and that a transaction between Take-Two and EA is the most compelling combination financially, strategically and operationally for all parties.

As of 5:00 p.m., EDT, on April 17, 2008, 6,432,787 shares of Take-Two had been tendered in and not withdrawn from the tender offer.

Read more: EA Extends Take-Two Offer For A Fourth Time, EA Extends Offer For Take-Two, EA Extends Take-Two Offer To June 16, T2 Responds, Take-Two: Say No To EA’s Offer, EA Not Reupping Take-Two Offer