Take-Two Considering Sale Of Company

RC Cola · Mar 19, 2007

http://www.gamasutra.com/php-bin/news_index.php?story=13186

Major publisher and developer Take-Two (Grand Theft Auto series) has announced that it is considering a sale of the company, following a fierce shareholder battle which threatens to depose major executives and the board.

A group of prominent Take-Two investors owning 46% of the company's shares, including OppenheimerFunds, D.E. Shaw Valence Portfolios, S.A.C. Capital Management and Tudor Investment, are looking to remove current CEO Paul Eibeler and bring about changes within the company's board of directors.

Due to this, Take-Two has announced that it has postponed its annual meeting from March 23rd until March 29th "...to provide additional time to review the proposed actions of the shareholder group and also to evaluate alternative courses of actions that could potentially be presented to the shareholders."

The main example of an alternative course of action is "a possible sale of the Company", though the official notice also notes: "There is no assurance that any specific alternative proposal will be forthcoming."

Take-Two’s recently restated financial results for fiscal 2006 saw revenue fall and the company record a net loss of $184.9 million. In addition, Wedbush Morgan's Michael Pachter recently issued a statement to his firm's clients, calling Take Two's shares “overvalued” and the company's path ahead “troubling.”

Nonetheless, the announcement has sharply affected Take-Two's shares in pre-market trading, with the company's Nasdaq-traded shares up almost $1.50 to $22.26 thanks to news of the possible sale.
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Along with GTA, TT is also known for Bully, Manhunt, the 2K Sports games, and they publish and/or have the license for games likes Oblivion, BioShock, The Darkness, and a few other titles.

Activision, EA (obviously), Ubisoft, Elevation Partners (which own Pandemic and BioWare), and a few other companies are interested. MS apparently ruled themselves out, and I wouldn't doubt it if the same was true for Sony and Nintendo. Who knows though...

Poloshirtbandit · Mar 19, 2007

Does this mean MVP MLB might be coming back?

RC Cola · Mar 19, 2007

If EA buys them (or at least, they buy the 2K Sports division and/or the MLB license), sure.

DaDakota · Mar 19, 2007

I have known about this for a long time the GTA recall left them in a major bind financially.

DD

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