Take-Two Soars on Shake-Up Push
With a hostile takeover on its hands, Take-Two's (TTWO) troubles may have just started.
A shareholder group is planning to oust the video-game publisher's CEO Paul Eibeler, "review the employment status" of its CFO Karl Winters and take control of the board.
Analysts are calling the move "long overdue."
The shareholder group, consisting of Oppenheimer Funds, S.A.C. Capital Management, Tudor Investment, D.E. Shaw Valence Portfolios and ZelnickMedia, collectively own a little more than 45% of the company.The news sent shares of Take-Two soaring by nearly $2.42, or 14%, to $20.03 in Wednesday midday trading. In a regulatory filing, the group said it plans to nominate Strauss Zelnick, Benjamin Feder, Jon Moses, Michael Dornemann, Michael James Sheresky and a yet-unidentified sixth person to Take-Two's board of directors. The group also plans to reduce the size of the board from nine to six members. Zelnick, the financial and management consultant for the group, will seek to be the nonexecutive chairman of the board. Take-Two's annual shareholder meeting is planned for Mar. 23. The N.Y.-based company, best known for its Grand Theft Auto game series has recently faced some turbulent times. Last month former CEO Ryan Brant pleaded guilty to charges related to backdating stock options. He also agreed to pay $6.3 million to settle civil charges brought by the Securities and Exchange Commission.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV