Take-Two Soars on Shake-Up Push

A change of management, though, won't entirely solve Take-Two's problems, according to Elizabeth Osur, an analyst with Citigroup, which makes a market in Take-Two shares.

"While this activist step is long overdue, considering the high ownership concentration and several years of poor results, we believe the company's contracts create structural issues that will not be easily solved by the new management," Osur wrote in a research report.

Last month, Take-Two restated its financial results and blamed the higher-than-expected loss on the video-game industry's transition toward next-generation platforms such as Sony's(SNE) PlayStation 3, Nintendo's (NTDOY) Wii, and Microsoft's(MSFT) Xbox 360 consoles.

Take-Two said it expects to return to profitability in the fourth quarter and break-even for the full fiscal year 2007. But now the management drama could place that goal in jeopardy.

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