Publisher Take-Two now has a five-person board of directors after the 12.02 million share buyout of the Icahn Group. Along with the $203.5 million buy-back, three Icahn Group board representatives have stepped down.
The buyout is outside Take-Two’s ongoing repurchasing plan. The company seeks to acquire 7.5 million shares, of which 4.2 million have been reacquired.
The purchase was executed with cash on hand, and required no additional financing. Share price was down in pre-market trading, but the value has bounced back to just above yesterday’s close of $16.86.
Our Take
This move reduces external influence on the Take-Two board, giving CEO Strauss Zelnick a more focused power base. The company has had flagging financials that have been put on the right path by GTA V, and being able to boldly move with a focused board could finish righting the ship.