Jack Thompson Says He Will Lead Shareholder Revolt to Oust T2's Strauss Zelnick

December 26, 2008 -

Disbarred attorney Jack Thompson says that he plans to lead a shareholder revolt against Take-Two Interactive chairman Strauss Zelnick.

Of course, disbarred attorney Jack Thompson says a lot of things...

In this case, Thompson claims in an e-mail that he just scooped up some T2 shares at their current, distressed price:

TTWO is today trading at about $7 per share.  Zelnick blew it.  Thompson today bought a bunch of Take-Two stock at the $7 figure.

The reason Thompson has done this is to lead the effort by Take-Two shareholders to dump Zelnick.  It is long overdue, and there are already rumblings that Zelnick’s tenure at Take-Two has been a disaster, as anyone still holding stock that could have been sold at $26 and is now worth $7 and falling, can attest.

In the letter, Thompson refers to the Z-man as an "incompetent, reckless goofball," which is pretty funny, coming from someone with Thompson's track record.
 

Comments

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

I still think they need to do a Bully sequel - one of the best games out there IMO - hell, Rockstar does seem to have a Midas touch for games, no (sane) shareholder would go against them

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

A Bully sequel would be fantastic! It ended up a far better game than I expected.

-------------------------------------------------

I LIKE the fence. I get 2 groups to laugh at then.

-------------------------------------------------- I LIKE the fence. I get 2 groups to laugh at then.

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Jack Thompson is the living breathing example of a revolting Shareholder.

He will succeed in the same manner he always succeeds, i.e. he won't, and, frankly, this whole announcement is simply because he wanted his name in a Xmas headline.

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

In other words, this is Jack's Christmas present to himself?

-Gray17

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Exactly, and from Dennis since he went ahead with the story...  another chance to laugh at something stupid though.

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Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Frankly, I am, and I hate to say this (god how I hate to say this) in the same boat with Mr. Thompson, but for different reasons.  I had TTWO stock when the EA offer went up, and I ducked out after the EA offer collapsed.  There were talks of another company willing to buy TTWO so I picked up again around $15.  It hasn't been that high since, and now I'm looking at stock worth half of what I paid for it on the subtle hints from a man who gave us the hope that there was more in store for us.  Hell, the better half of the financial community (those that are famed for watching the business world) have basically marked Mr. Zelnick as a blithering idiot for running his company into the ground, or close thereto.  Alot of investors are angry about his handling of the EA issue, and we bought into his verbose scam of betting things to come.  He's had amazing titles come across his desk and make the company millions, but the shares keep falling.  I understand that the economy has a tremendous impact on the current state of the market, and an article in the Washionton Post two months back stating that video game stocks were extremely over-inflated was the first hard right hook to the jaws of a few companies.

Getting back on topic, Mr. Thompson, unless he procured a signifigant amount of stock, will have a hard time convincing shareholders to oust Mr. Zelnick.  Lest we forget, one of the major issues in the EA/TTWO merger was the benefit packages that Mr. Zelnick and his assistants, fellow managers, etc. were to get if they were to be replaced.  Explain this to a shareholder of a struggling company, and then inform them if they oust Zelnick, the shares could very well go further south on the basis of 1) an unstable company that had to clear out top management and bring in fresh blood does not bode well for consumer confidence and more shareholders may take a loss and get out leaving their shares worth even less, 2) the money that is going to be doled out of already dwindling financial reserves to part ways with Mr. Zelnick and company (golden parachutes are a dandy little thing), lastly 3) the money that is going to be offered to new leadership to take on what can be percieved to be a sinking ship in an economic malestrom.  That is alot of coin to be tossing around when your stock is worth less than 1/3rd of what it did a few months ago.  So, dare I ask who still wants to remove Mr. Zelnick and watch TTWO trade for as much as Washionton Mutual or brace for rocky times ahead, and when the skies clear a bit, we can make the salty dog walk the plank accordingly.

As far as the idea of using stocks to drive moral compunction, it will never work and Mr. Thompson should at least know that.  Business is about profit, and risk.  What he offers is something too far risky given the market as it is.  Read the three points above and, unless Mr. Thompson own 50%+1 of the stocks, he will be hard pressed to see Mr. Zelnick pushed out of the nice, top-floor office he currently works out of.

 

To be persuasive we must be believable; to be believable we must be credible; credible we must be truthful. Edward R. Murrow

To be persuasive we must be believable; to be believable we must be credible; credible we must be truthful. Edward R. Murrow

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Keen observation as to the correlation between ownership percentage and ability to influence shareholder and/or corporate decisions. You'll notice that Jack-O's press release goes no further than the altogether cryptic "bought a bunch" with respect to the actual amount of shares he's purchased. If I know Jack, he's bought exactly one share. Not what I'd call a toe-hold acquisition.

And you sound like you'd know better than me that toe-hold acquisitions have to be reported to the SEC. If he did have significant ownership percentage, that fact should be discoverable on EDGAR.

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

I'd love to take a look at TTWO's books and see how many shares were sent Mr. Thompson's way, but I don't have the $900 needed for edgar-online and I am in no way shape or form going to sign up for a seven day trial then forget to unsubscribe prior to every free penny I own being wrenched from me.

If done through proxy, like a shell company are alternate buyer, it would be a touch harder, but, yes, any large transfer that confers majority holding or insider transfer would show up like a red light.  Furthermore, to assure a remote control of the company, one would have to assume that they would have some leverage, which would be around 10%-ish.  One would have some weight at that point, but since TTWO currently has 77.7 million shares available to the public (as of last quarter) Mr.Thompson would need to have procured 7.77 million shares, at 7.39 (the lowest price from the last two weeks), it would still amount to something in the area of $57.42 million and some change.  Functionally speaking, unless he has some tremendously powerful oratory skills that we have yet to be witness to, and direct access to the entire body of investors (which is highly improbable since most stockholder votes are done via secret ballot) , he's not going to get much accomplished.

The only thing that could even cross my mind as to his logic is that "bunch", as I understand it, is used to confer a measurement of bananas or other tropical fruit, not shares in a company.  Is it possible that Mr. Thomspon has mistaken tasty, tasty bananas or delicious coconuts for Market equitable shares in a publicly traded company.  It would not be the oddest thing I have seen come out of that camp.

 

To be persuasive we must be believable; to be believable we must be credible; credible we must be truthful. Edward R. Murrow

To be persuasive we must be believable; to be believable we must be credible; credible we must be truthful. Edward R. Murrow

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Plus, think of all the requests for vote by proxy which a corporation mails out to it shareholders and which said shareholders (usually those with a very minority interest) quickly toss in the rubbish while never self-exercising their right to vote. That's bound to have some watering-down (pun intended, get it?) effect.

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Wait... didn't Jack buy only one share a while ago so he could go and take part in the stockholder meetings?  Also, how much stock did he actually buy this time around?  Last I heard, he had to write the Bar a check for about $40,000 or so...

...does he actually have any money left?

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Jack : So imaginary batman, what are we going to do tonight? NARF!

Jack's imagination : The same thing we do every night you dumbshit, try to topple take two!

 

I'll say this much, the violence in our media is damaging to society, but TV is SO much further along than most video games. Of course, many companies are getting exponentially more violent with their games in RESPONSE to jack thompson's rants...

Hopefully when this nut snaps, he's quickly stopped. He's more at risk of going on a shooting rampage than most gamers. Any *SANE* person that made it through law school would be able to logically gauge people's reactions to what they were saying, and modify their behavior to get the reaction they wanted.

Okay, ending my mini rant I want to give you all something to think about.

If Jack Thompson is insane he'd be screaming, ranting, and raving about the video game industry's violence because he wanted it to get less violent/graphic.

If JT is sane and he wanted it to get less violent, he'd as a lawyer be logically pulling the foundation of the pro-violence crowd's argument in a way that garnered public sympathy.

OR if he wanted to push video game violence over a precipace of 'too far', or otherwise wanted to accelerate it or desensitize the public to its presence, he'd do exactly what he is doing.

In other words, if he's sane he has us right where he wants us, getting exponentially more violent and sexual, indie developers capsizing, and take two pretty much immune to future lawsuits because of his outright stupidity.

A lack of self regulation will cause forced exterior regulation.

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

"Jack : So imaginary batman, what are we going to do tonight? NARF!

Jack's imagination : The same thing we do every night you dumbshit, try to topple take two!"

FULL OF WIN.

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"Game on, brothers and sisters." -Leet Gamer Jargon

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"A Chrono Trigger is anything that unleashes its will or desire to change history!" -Gaspar

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Hrmm... Jack says he sold all of his stock.

So, he has no standing, nor any rights, at any T2 shareholders meeting.

 

More BS.

Yes, I am a liberal. I also believe in a strong military, less government, and the right to bear arms. 

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Ah... I was wondering what Jack's latest failure would look like. Stock huh?

It's nice to see that you keep raising the bar when it comes to failure Jack. For a short while, I thought you left that particular art form behind. Keep up the good work buddy! *Snicker*

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

For some reason I can't help but think of Church Lady from SNL

"Well...isn't that special?"

Or the big guy in 2 Stupid dogs

"Well isn't that cute?....BUT IT'S WROOOOOOOOOOOONG!!!!"

*sigh*

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

I know its beyond John Bruce's ability to comprehend. (along with other things like why you shouldn't file porn to a court of law or threaten to blow up a governmental office) but you do not sell to EA for any amount of money.  Mr. Zelnick should be hearalded for keeping the jackals known as EA at bay.

Furthermore I don't think that the shareholders are going to listen to someone who once threatened their company.  See: The Sims 2 fanmade blur removal patch controversy.

-Ultimately what will do in mankind is a person's fear of their own freedom-

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Yeah, and now EA might get eaten by Disney, which will prolly result in the end of both of them in my ideal world, and guaranteed the end of at least one of them in the real world.

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Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

i say we sick the sec on thompson this was a stock scam! (my apologies to the sec, i am truly sorry if you have to spend one minute in a room with thompson)

 

please note this whole post is a joke(albeit bad one but a joke none the less)

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

It isn't much of a scam when people already don't respect you at all because of your poor choices and loony tactics. (Loony as in the old meaning that he is crazy not the more current one that is more so goofy.  He isn't that funny, and lacks logic...  Okay, he is goofy in some ways...)  So I would say this will have no effect at all, even if it is an attempt at a scam.

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How to set Xbox 360 Parental Controls

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Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

The Metropolitian Moron of Miami should make up his mind. He had stock in the company(making him a hypocrite for suing them so many times no matter why he bought them), then was among the first to sell when EA started its failed hostile takeover bid.

I seem to recall World Wrestling Entertainment's stock plummeting from like $33 a share to $9, yet nobody led a shareholder revolt against Vince McMahon(though that was because McMahon is majority owner, and it's family owned).

Maybe Jack should buy stock in Depends adult diapers instead, since he refuses to practice what he preaches about growing up and get a life.

Geaux Saints, Geaux Tigers, Geaux Hornets, Jack Thompson can geaux chase a chupacabra.

Geaux Saints, Geaux Tigers, Geaux Pelicans. Solidarity for the Saints = No retreat, no surrender. 2013 = Saints' revenge on the NFL. Even through the darkest days, this fire burns always.

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Although I would like to see this "letter" that JT sent, I'm sure he'll be posting it soon.

As far as him buying shares, I'm betting he bought like 10 shares, since he doesn't have an income to speak of.

*idea*  This is like one of those faxes that you get at work claiming that such and such stock is going to go up and you should buy them now.  Then when the price rises due to demand, he sells a bunch of shares and makes a profit.

Sortableturnip's Law: As an online discussion of video game violence grows longer, the probability of a comparison involving Jack Thompson approaches 1

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Immediate News Release – Dec. 26, 2008

Anti-Violent Video Game Activist Jack Thompson to Lead Effort to Oust Take-Two Chairman Strauss Zelnick

Four years ago, Miamian and anti-violent video game critic Jack Thompson purchased the stock of Take-Two Interactive Software, Inc., in order to oust its Chairman, Paul Eibler.  Eibler, under Take-Two’s “leadership,” was caught distributing adult material to minors.  Eibler was voted by Dow Jones’ MarketWatch the “Worst American CEO” in 2005.  Events took care of Mr. Eibler.

Eibler was replaced by Strauss Zelnick, who promised to make Take-Two shareholders more money in the sale of its various games, including the pornographic and hyper-violent Grand Theft Auto games.  Thompson, having met with Zelnick personally on May 15, 2007, concluded, after spending two hours with this fellow that Zelnick was an incompetent, reckless goofball.

Zelnick was then offered $26 per share for Take-Two’s stock in a buy-out offer from Electronic Arts, the largest video game company in the world.  Zelnick refused to sell, claiming Take-Two stock (TTWO on NASDAQ) was worth more.

Thompson, knowing it wasn’t, sold all his stock at $26 per share on the open market.

TTWO is today trading at about $7 per share.  Zelnick blew it.  Thompson today bought a bunch of Take-Two stock at the $7 figure.

The reason Thompson has done this is to lead the effort by Take-Two shareholders to dump Zelnick.  It is long overdue, and there are already rumblings that Zelnick’s tenure at Take-Two has been a disaster, as anyone still holding stock that could have been sold at $26 and is now worth $7 and falling, can attest.

Contact Jack Thompson for more information


 

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

"Eibler, under Take-Two’s “leadership,” was caught distributing adult material to minors."

This sounds a little libelous in my opinion. Maybe it's even actionable by Mr. Eibeler?

"The reason Thompson has done this is to lead the effort by Take-Two shareholders to dump Zelnick."


So Thompson believes that Mr. Zelnick is bad for Take Two and wants to get rid of him, thus helping Take Two, the company he has sworn to destroy time and time again? The mind boggles.

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Step 1:  Buy T2's stock at $7/share.

Step 2:  Convince people to buy T2's stock.

Step 3:  T2's stock price rises.

Step 4:  Sell T2's stock when stock reaches $20/share.

Step 5:  Profit

Sortableturnip's Law: As an online discussion of video game violence grows longer, the probability of a comparison involving Jack Thompson approaches 1

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Sounds about like his plan. Talk about insider trading. I hope this blows up in his face and he gets to reap the rewards of it.

E. Zachary Knight
Oklahoma City Chapter of the ECA
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Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

 So what? Jack thinks he can convince the shareholders to not just oust Zelnick but to replace him with someone who would bring an end to games like GTA? talk about a pipedream... when it comes down to it, GTA was one the reasons why the company was worth $26 per share in the first place... Its little facts like that, that will cause shareholders to tell him to shut up while they select someone who will just keep the M-rated train rolling... 

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Couldn't, all of those stockholders have sold their stock at anytime and as such could have sold it themselves when it was worth $26?... Ea was bascially buying the stock at just about it's listed price at the time, so selling to EA or selling in general would have made no difference... essentially, if Zelnick is a fool for not selling out to EA then no one currently holding stock can complain as they made the same damn decision... 

Not to mention that how much of this low stock is Zelnick's fault is a bit up in the air since a lot of companies to a hard hit in the stock market due to these economic times... and also that it was while the company was under Zelnick that the company became worth $26 per share in the first place... oh but those are the kind of "facts" that Jack finds to inconvenient to mention in his "revolt"

Not sure what Jack is really trying to accomplish though... i guess he's just after bragging rights; i mean, Zelnick leaving will only make way for a new boss who will continue GTA and all that other stuff... Doesn't exactly help jack's agenda

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

*headdesk*

If he didnt threaten to destroy T2 every other day, i might be concerned by this, but he does so i'm not.....

 

I dont really think anyone in their right mind would join Thompson in this anyway... so it'll be just him and the voices in his head participating in this "consumer revolt"

Edit: anyone want to bet this thread reaches 200 posts again thanks to JT spamming court documents and the like?

"Go ahead and hate your neighbor, go ahead and cheat a friend. Do it in the name of Heaven, Jack Thompson'll justify it in the end." - nightwng2000

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

I though he couldn't comment here because GP finally got fed up (again) and hit him with a new IP ban.

And so far, he apparently hasn't been able to get around it.

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

He'll probably find a way around the IP ban soon, knowing him. xD

Re: Jack Thompson Says He Will Lead Shareholder Revolt to Oust

Arguing (as much as one can argue with a man possessing the mental dexterity and logic of a brick wall) with JT was one of my main joys in coming to this site

 
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