The New York Post is reporting that Elevation Partners, the high-profile investment firm headed up by former EA boss John Riccitiello, is considering acquiring publisher Take Two Interactive in a deal worth up to $1 billion.

In a report published yesterday, the Post claims that Elevation has teamed up with Pequot Capital, a hedge fund which owns a significant chunk of stock in the embattled publisher - which is currently facing further lawsuits over last year's "Hot Coffee" affair, where a hidden "pornographic" game was found in Grand Theft Auto: San Andreas.