Icahn Grabs Bigger Stake in Take-Two

December 21, 2009 -

Billionaire financier Carl Icahn has increased his stake in Take-Two Interactive to 11.3 percent, up from 2.5 percent, according to a filing with the SEC.

Icahn, known for his shrewd business moves, has always had an interest in videogame companies, and this latest purchase has analysts specualting on the future of Take-Two and why Icahn purchased his stake at this particular time. His purchase of 5.9 million shares and more than 783,000 options makes him the company's second largest shareholder.

Earlier this year, Take-Two spurned a $25.74-a-share acquisition offer from Electronic Arts. Now, with Icahn more involved, analysts think something is imminent with Icahn looking to cash in on undervalued shares. With the announcement of Icahn's purchase, Take-Two shares jumped more than 9 percent on Friday to close at $9.01.

According to a Reuters story, analyst Michael Pachter, who montiors the industry for Wedbush Morgan, said that Icahn may force a sale of Take-Two:

"I don't think as an activist he wants to run a company, I think it's much more logical that he would sell the company," Pachter said.

Pachter also said that Icahn has a history with Take-Two chairman Strauss Zelnick, whom Icahn nominated to the board of Blockbuster in 2005.

Another scenario, according to analyst Mike Hickey of Janco Partners, is to sell off parts of the company, such as 2K Sports:

"There's the opportunity to unlock some significant value, they could look at the pieces of the business," Hickey said.

It will be interesting to see what Icahn has planned for the company and how it impacts some of the company's most reconizable franchises, such as Grand Theft Auto and BioShock.


Comments

Re: Icahn Grabs Bigger Stake in Take-Two

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

Never underestimate the power of idiots in large amounts.

Never underestimate the power of idiots in large amounts.
 
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SleakerAlthough.. I don't think it hurts anyone if kids think the report is true :P09/01/2014 - 3:26am
Sleakerand just for future reference. National Reports is a fake news site, they decided to remove their disclaimers a while back apparently...09/01/2014 - 3:25am
Thomas RiordanDon't feel bad. I posted the same thing last night and deleted it once I realized it wasn't real.08/31/2014 - 11:13pm
E. Zachary KnightAh. The report actually read serious to me. Oh well. At least it didn't happen.08/31/2014 - 7:46pm
ConsterAlthough apparently someone who was in a swatting ring in Texas took a plea for up to 5 years in July.08/31/2014 - 7:14pm
ConsterProbably because it's a satire site.08/31/2014 - 7:13pm
E. Zachary KnightI agree that the kid should be punished, but the charge and sentence seem a bit overboard to me. http://nationalreport.net/15-year-old-swatted-domestic-terrorism/08/31/2014 - 6:56pm
Andrew EisenI get a "page doesn't exist."08/31/2014 - 11:50am
MaskedPixelantehttps://twitter.com/Nevelets/status/506076879309508608 What we're currently supposed to be offended by, or whatever.08/31/2014 - 10:10am
MechaTama31AE: Probably snarky commentary on this: http://www.gamepolitics.com/2014/08/29/principle-player-leland-yee-arms-trading-case-dies08/30/2014 - 8:43pm
Andrew EisenConster - Don't know. Got a link to whatever you're referring to?08/30/2014 - 7:04pm
ConsterWait, what's this about Leland Yee eliminating witnesses?08/30/2014 - 5:50pm
IanCBroke my EA boycott to pick up Plants vs Zombies Garden Warfare. Loving it. Still hate EA though. But i like Popcap. Gah.08/30/2014 - 6:01am
MaskedPixelantehttp://m.tickld.com/x/something-you-never-realized-about-guardians-of-the-galaxy Right in the feels.08/29/2014 - 6:56pm
AvalongodAgain I think we're conflating the issue of whether Sarkeesian's claims are beyond critique (no they're not) and whether its ever appropriate to use sexist language, let alone physical threats on a woman to intimidate her (no it isn't)08/29/2014 - 5:04pm
prh99Trolling her or trying to assail her integrity just draws more attention (Streisand effect?). Which is really not what the trolls want, so the only way to win (if there is a win to be had) is not to play/troll.08/29/2014 - 5:02pm
prh99Who cares, just don't watch the damn videos if you don't like her. Personally, I don't care as far as she is concerned as long there are interesting games to be played.08/29/2014 - 4:34pm
Andrew EisenZip - And yet, you can't cite a single, solitary example. (And no one said you hated anyone. Along those lines, no one claimed Sarkeesian was perfect either.)08/29/2014 - 3:51pm
Andrew EisenSaint's Row: Gat Out of Hell was just announced for PC, PS3, PS4, Xbox 360 and Xbox One making it the 150th game For Everything But Wii U! Congratulations Deep Silver!08/29/2014 - 3:49pm
ZippyDSMleeI do not hate them jsut think its mostly hyperlobe.08/29/2014 - 3:40pm
 

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