NEW YORK — "Grand Theft Auto" publisher Take-Two Interactive told its shareholders Wednesday to reject a $2 billion buyout bid from rival video game company Electronic Arts, saying the offer is not high enough.

Take-Two said it will explore alternatives, including a combination with EA or other companies, to maximize its value for shareholders _ but not before "Grand Theft Auto IV," the latest in the blockbuster series, hits store shelves on April 29. The game is by far Take-Two's most popular and one of the best-selling franchises in the industry.

EA's $26-per-share bid for Take-Two turned hostile March 13 when EA took the offer directly to shareholders. Take-Two's board had asked for 10 business days to mull over the decision, and that time ran out Wednesday.

EA called the rejection "regrettable for stockholders" and said its offer price was full and fair. In a terse statement, the company noted that the offer represents a 64 percent premium over Take-Two's closing stock price on Feb. 15, the last trading day before EA sent the offer privately to the publisher.

If the deal goes through, the combined company would join Activision Blizzard as one of the world's top game publishers. French media conglomerate Vivendi SA is buying Activision Inc. in a deal expected to close in the first half of this year.

The video game industry is by some measures beginning to outpace the worldwide music market, and more consolidation is eminent. Many gamers and developers worry that innovation is at risk as large publishers increasingly rely on blockbuster sequels and movie tie-ins.

Take-Two Chairman Strauss Zelnick said he is concerned about what happens to game quality in a highly concentrated world.

"That said, we are a public company and have to be here for our shareholders," he said in an interview.

Take-Two took several steps to prevent EA from going through with a hostile takeover. It adopted a rights agreement, also known as a "poison pill," for the next 180 days. Designed to make a takeover more expensive for the buyer, it kicks in if an outsider acquires 20 percent of Take-Two's shares or if an existing shareholder who already owns this much buys another 2 percent.

Zelnick said the rights agreement "will not, and is not intended to, prevent a takeover of the company on terms that are fair to and in the best interests of all stockholders."

Take-Two also postponed its upcoming annual shareholder meeting a week to April 17 and amended its bylaws to give shareholders more time to nominate board members. EA's tender offer is still set to expire on April 11.

Take-Two Interactive Software Inc.'s shares have briefly climbed above $26 in recent weeks, but analysts are not expecting the offer to go much higher. The company said it has received other "indications of interest" since EA's offer became public last month, but there haven't been any "substantive discussions."

Michael Pachter, an analyst with Wedbush Morgan, believes Take-Two's board has "virtually no chance of finding a better offer."

"The EA offer has been public for 31 days, and we believe the company is not in discussions with any other party," he wrote in a note to investors.