Blog Post

Is Take-Two In For The Yahoo Treatment? Icahn Takes An 11 Percent Stake

Activist investor Carl Icahn has a new company on his radar: Take-Two Interactive (NSDQ: TTWO). Fresh off the company’s poor fiscal Q4 earnings report, comes news that Icahn owns a roughly 11.3 percent stake, per an SEC filing. The filing states that Icahn believes Take-Two’s shares are “undervalued,” and that he could potentially “acquire additional shares” in the future.

But most telling is that Icahn may “seek to have conversations” with company reps from time to time — meaning Take-Two’s execs could start feeling the heat from his opinions about the way the business is being managed. Icahn has gone head-to-head with the boards of a number of companies; most recently it was *Lionsgate*, but his battle with *Yahoo* has perhaps been the most sensational.

Icahn bought over 9.1 million shares, or $70.6 million worth. He bought up two-thirds of his stake in December alone, per the LAT, right in the thick of Take-Two’s stock free-fall, after it lowered guidance and told investors that it wouldn’t reach profitability next year as planned.

Take-Two’s execs have only been able to focus solely core issues like driving revenue and long-term strategy in the past six months or so. The company spent much of 2008 and 2009 dealing with the fallout from issues like EA’s hostile takeover attempt (complete with an FTC subpoena), and an insider trading suit.