Monday, March 19, 2007

Under Pressure, Take-Two Says It Will Consider a Sale

Already taking heat from a group of high-powered activist shareholders, Take-Two Interactive Software said Monday that it will postpone its annual investors meeting by nearly a week and will review a possible sale of the company. In a statement, the embattled maker of the “Grand Theft Auto” videogame series said that it was moving the meeting to March 29 from this Friday to better study the proposals of the dissident shareholders and assess strategic alternatives.
In its statement, Take-Two asked shareholders to wait until it had presented any of its own proposals before making up their minds about the activists’ proposed slate of directors. That group of shareholders, which includes OppenheimerFunds and the hedge funds SAC Capital, Tudor Capital and the D.E. Shaw Group, recently said in a regulatory filing that they want to take control of the company. Among the candidates they have nominated is Strauss Zelnick, a former BMG executive.
The embattled maker of the “Grand Theft Auto” franchise said that the record date of Feb. 26 remains the same.
Take Two has been beset by a passel of troubles lately. Ryan A. Brant, Take Two’s former chief executive, pleaded guilty this year to criminal charges related to backdating of stock options. Take Two also said it found that five independent directors had received improperly dated stock options. They have agreed to repay the company hundreds of thousands of dollars.
Go to Take Two Press Release »

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