Sections

Take-Two buys out Icahn for $203.5m

"With our ample cash and strong expected cash flow, we are able to pursue a variety of investment opportunities"

Take-Two Interactive Software has repurchased all of the Icahn Group's stock, a deal worth $203.5 million and involving 12.02 million shares.

"This share repurchase reflects our confidence in the Company's outlook for record results in fiscal 2014 and continued Non-GAAP profitability every year for the foreseeable future," said Take-Two CEO Strauss Zelnick.

"With our ample cash and strong expected cash flow, we are able to pursue a variety of investment opportunities, including repurchasing our Company's stock. On behalf of our board and management team, I would like to thank Brett, James and Sung for their support, dedication and service to our organisation. They leave Take-Two better positioned than ever for continued success."

The move was funded by cash and cash equivalents on hand and Take-Two explained the move is "part of an ongoing strategy to buy back its shares."

Take-Two and Icahn gave no reason for the sale of the shares, but as previously agreed, Icahn's Brett Icahn, Jim Nelson, and SungHwan Cho and have resigned from the Take-Two board.

The Icahn Group is overseen by activist investor Carl Icahn and this year Forbes named him one of its 40 Highest-Earning hedge fund managers. In the past he's tried to acquire Dell, Marvel Comics and owns a ten percent stake in Netflix.

[UPDATE]: Investors did not greet the news warmly, as Take-Two shares traded at twice their average volume and ended the trading day down 5.49 percent to $16.

Related stories

15 years on: The story behind one of Xbox's most notorious TV ads

Harvey Eagle recalls the creation of the banned UK TV ad, Champagne

By Christopher Dring

Konami issues cease and desist against Unreal Castlevania fan remake

But publisher has allowed all current files to remain available, developer hopes to acquire an official licence

By James Batchelor

Latest comments (2)

Its great that 2K have the ability to steer their own course now without Icahn on board
0Sign inorRegisterto rate and reply
Christopher Bowen Editor in Chief, Gaming Bus3 years ago
Translation: "And don't let the door hit your ass on the way out, asshole."
1Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.