It appears that Take-Two will be setting a few extra place mats at their dinner table. In a press release issued today, Take-Two announced that they will allow EA to “enter into” the company’s “formal process to evaluate strategic alternatives.”

The release also notes that EA’s offer to acquire Take-Two’s outstanding shares will expire at midnight EST tonight.

Take-Two’s Chairman, Strauss Zelnick, stated:

We welcome EA into our formal process and look forward to demonstrating to their Board the significant strides made by Take-Two since they last undertook a detailed review of our business in early 2007. Our Board remains unwavering in its belief that EA’s unsolicited conditional tender offer of $25.74 per share was inadequate and undervalued Take-Two’s world-class entertainment franchises and our strong operational and financial performance.”

This seems like a desperate measure to keep an assertive bully at bay. The statement above reeks of defeat, pleading that EA punch them in the gut instead of the face. Does this spell the end for Take-Two or will EA suggest a “strategic alternative” that doesn’t involve them devouring the company at a price they see fit?

The victory here for Take-Two is a small one that buys them a little time, but the fact they are using that time to perform a song and dance for EA should concern those who aren’t on board with a deal like this going down.

Full press release after the jump.

TAKE-TWO INTERACTIVE SOFTWARE, INC. CONFIRMS THAT ELECTRONIC ARTS WILL JOIN TAKE-TWO’S FORMAL PROCESS REVIEWING STRATEGIC ALTERNATIVES AND THAT EA’S TENDER OFFER WILL EXPIRE

New York, NY— August 18, 2008 — Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today confirmed that it expects to sign a confidentiality agreement with Electronic Arts allowing EA to enter into Take-Two’s formal process to evaluate strategic alternatives. Take-Two also affirmed that it is continuing its discussions as part of this process to maximize value for stockholders.

Take-Two also noted that EA will allow its unsolicited conditional tender offer to acquire all of Take-Two’s outstanding shares to expire at 11:59 p.m., New York City time, today.

Strauss Zelnick, Chairman of Take-Two, commented, “We welcome EA into our formal process and look forward to demonstrating to their Board the significant strides made by Take-Two since they last undertook a detailed review of our business in early 2007. Our Board remains unwavering in its belief that EA’s unsolicited conditional tender offer of $25.74 per share was inadequate and undervalued Take-Two’s world-class entertainment franchises and our strong operational and financial performance.”

Ben Feder, Chief Executive Officer, added, “We are continuing to consider all alternatives that will maximize value to our stockholders. As part of that commitment, we are engaged in discussions with other parties as part of a formal process to generate greater value and will act quickly to assist EA in moving expeditiously through our process. In the meantime, we remain focused on executing on our business goals and creating value for stockholders and consumers of our products.”

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