[UPDATED with comment from Take-Two]

Video game publisher Electronic Arts announced today that it is attempting to buy Take-Two Interactive, publisher of “Grand Theft Auto,” “BioShock” and the 2K Sports line in a stock purchase valued at $2 billion.

The announcement stems from a post-Valentine’s Day February 15 rejection by Take-Two Interactive executive chairman Strauss Zelnick of EA’s initial offer and a subsequent rejection of a second one offered on February 19.

As a result EA is taking the issue public. CEO John Riccitiello said in today in a press release detailing the deal: “Our all-cash proposal is a unique opportunity for Take-Two shareholders to realize immediate value at a substantial premium, while creating long-term value for EA shareholders. Take-Two’s game designers would also benefit from EA’s financial resources, stable, game-focused management team, and strong global publishing capabilities.”

EA’s attempt to purchase Take-Two Interactive comes less than three months after Activision and Vivendi announced their plans to merge into a company called Activision Blizzard in a deal valued at $18.9 billion.

We’ve put in requests for comment to Take-Two and Rockstar. EA will be holding an 8AM eastern time tomorrow to further discuss the company’s hopes for its planned purchase.

[UPDATE: Feb 24, 5:11PM ET]

In response to EA’s online charm offensive seemingly aimed at Take-Two Interactive’s stockholders, the Board of Directors at Take-Two has issued a press release detailing their rejection. Calling the $26 per share offer “inadequate inadequate in multiple respects and not in the best interests of Take-Two’s stockholders,” they say that EA’s proposal “substantially undervalues” their company.

Regarding “GTA IV” Take-Two’s Zelnick stated: “We offered to initiate discussions with EA on April 30th, 2008 (the day after ‘Grand Theft Auto IV’ is scheduled to release). We believe this offer demonstrated our commitment to pursuing all avenues to maximize stockholder value, while we believe that EA’s refusal to entertain this path is evidence of their desire to acquire Take-Two at a significant discount, whereas we believe this value rightly belongs to our stockholders.”