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.
 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
Sora-Chan@Andrew Eisen: A tip for when it comes to clicking people's video recommendations, use Incognito/Private Mode.that'll keep those kinds of recommendations off the radar. =P08/04/2015 - 5:37am
InfophileWow, I just got an e-mailed ad from Nintendo: "FREE AC Adapter with New Nintendo 3DS XL" - So... pretending this didn't used to be normal, are we?08/04/2015 - 3:34am
MattsworknameNight man, take care08/04/2015 - 2:59am
Andrew EisenOff to bed. Play nice.08/04/2015 - 2:53am
Andrew EisenNo worries. Yeah, it's the pits. It's like "How many times do I have to tell you I'm not interested in this producer's work before you stop recommending his videos to me?!"08/04/2015 - 2:53am
MattsworknameAndrew: Sorry man, youtubes recomendations system is really crappy08/04/2015 - 2:49am
MattsworknameIp: they cite 4 chan. Enough said08/04/2015 - 2:47am
IronPatriotWhat I don't get is why anyone wants to be part of the private online army for a stalker.08/04/2015 - 2:32am
IronPatriotYes, it's pretty sad that even after GG has been exposed as a fraud designed to harass Sarkeesian, they still want to attack her. Do facts even matter anymore?08/04/2015 - 2:30am
Andrew EisenDammit. For context's sake, I watched that one Chris Ray Gun video Matt linked to and now my recommends are chockful of anti-Sarkeesian crap from the usual suspects. ARGH!08/04/2015 - 2:27am
Andrew EisenIP - Now you just essentially asked Matt the same question twice in a row. Seriously, once is enough.08/04/2015 - 2:11am
IronPatriotMattsworkname, do you have any actual evidence for your "complete bollocks" claim? Or are you making up more "facts08/04/2015 - 2:11am
IronPatriotMattswork, prove your claim that the article is "based on complete bollocks"08/04/2015 - 2:08am
Andrew EisenIP - Stop asking me the same question over and over and over and over and over and over and over and over again. It's super annoying. Especially when I've already addressed it.08/04/2015 - 2:07am
Andrew EisenMatt - How? Set aside half an hour. It's not hard if you know your history. It's just time consuming.08/04/2015 - 2:06am
IronPatriotAndrew, so you agree about the lying fraudulent nature of gamergate's origins? So supporting gamergate when it is clearly a fraud deserves to be called what it is, right?08/04/2015 - 2:06am
Andrew EisenFrom an ethics standpoint, there's nothing wrong with that article or posting news on subjects that are of interest.08/04/2015 - 2:05am
MattsworknameAndrew: the toughest thing about Gamergate is that it lacked any form of directed leadership or oganizaotion, How do you really explain something so amourphous that it leterally took months and moths to gain any real shape?08/04/2015 - 2:05am
Andrew EisenIP - A metric crap ton of history and context. GamerGate isn't hard to explain, it just takes a while.08/04/2015 - 2:01am
MattsworknameAnd ip wonders why gamergate went after sites like ARS and kotaku08/04/2015 - 2:00am
 

Be Heard - Contact Your Politician