Electronic Arts (ERTS) made its bid for rival video game maker Take-Two (TTWO) five months ago, and it’s looking more and more like the deal isn’t going to happen — not soon, at least.
The WSJ reports that options traders are buying contracts that allow them to sell Take-Two stock for $20 in August. The contracts each cost $0.85, which means the traders are expecting that the price of the stock will dip below $19.15. That’s well below EA’s $25.74-per-share bid, which is still keeping TTWO shares above pre-offer levels in the teens. Over the last week, Take-Two stock has dropped 6% to $24 from $25.60.