Take-Two's Tonic

Take-Two's (TTWO Quote) troubles run deep.

For nearly three years now, the New York-based video-game publisher has been besieged by investigations into its accounting and stock option grant practices, its video games have drawn extensive criticism for their racy and violent content, and it has yet to turn a profit.

Take-Two also lacks a solid plan to take advantage of the latest cycle of game consoles and diversify successfully beyond its core strength of action games.

In the last two weeks, Take-Two's problems have only gotten worse as it finds itself in the middle of a battle for the boardroom.

Take-Two is facing a revolt by a group of shareholders who want to change the company's current CEO, Paul Eibeler, and board of directors.

On Monday Take-Two revealed that it will explore the possibility of a sale, which for shareholders may make for a better alternative than just a change of management.

Taking Take-Two private or folding it into a larger company could mitigate some of the issues a change of management alone cannot, say some analysts.

Either way, Take-Two investors are loving the idea of a change. The company's stock has soared more than 26% since the news of the Securities and Exchange Commission filing by the shareholder group on March. 7.

Shares of Take-Two were off 20 cents to $22.41 midday Tuesday after closing Monday up more than 8%.