EA made its second bid for the company at $26 per share last Tuesday, an increase from a $25 per share bid that was rejected earlier in the month. After Take-Two executive chairman Strauss Zelnick rejected the second offer on Friday, EA decided to present its proposal to shareholders on Sunday.

Deal would combine EA, which remains the world's No. 1 vidgame publisher but has recently been losing ground, with midsized publisher Take-Two, which relies primarily on subsidiary Rockstar's Take-Two but also has a solid sports games business and several successful new franchises including Bioshock and Carnival Games.

EA's offer comes amid a period of consolidation in the fast-growing videogame biz: Activision is preparing to combine with Vivendi's videogame unit, owner of the ultrasuccesful World of Warcraft. Merged entity, to be be called Activision Blizzard, would be valued at $18.9 billion. Based on their current capitalizations, EA and Take-Two would have a combined worth of just over $17 billion.

Take-Two is preparing to release the hugely anticipated Grand Theft Auto IV in late April.

Read the full story on Variety.com.