As major Take-Two investor exits, company sale seems less likely

Grand Theft Auto publisher Take-Two said Tuesday it entered a deal worth $203.5 million to buy back 12 million shares from major investor Icahn Group. Carl Icahn, known as an activist investor, has been a major factor in Take-Two's business over the years. With his heavy investment in the company and three Icahn Group designees on Take-Two's board, industry watchers considered his involvement as a sign that he would push the board to sell the company. With today's buyback of the shares that intent appears to have changed. "Given Carl Icahn's activist record, his exit may signal that he doesn't believe a sale of the company is likely," said Wedbush analyst Michael Pachter in a research note. With the buyback of the Icahn shares, Icahn Group withdrew its three designees from the Take-Two board, as part of a prior agreement. On top of the $203.5 million buyback from Icahn, Take-Two also said today it repurchased $73.5 million worth of shares.