Icahn Buys Big Stake in Video-Game Maker Take-Two
According to several media sources, Icahn said he might seeks talks with Take-Two management. Icahn and Take-Two Chairman Strauss Zelnick both serve on the board of Blockbuster (BBI).
Icahn's likely plan is to find a buyer for Take-Two. When the company made a preliminary announcement of earnings on Dec. 4, Take-Two's stock fell from $11.31 to $7.74. In early 2008, Take-Two had a buyout offer from Electronic Arts (ERTS), which took Take-Two shares above $27.
Icahn may be gambling that he can get Electronics Arts to return to the bargaining table, or that video-game company Activision-Blizzard (ATVI) might make an offer. He certainly isn't taking his position in Take-Two stock because he spends hours a day playing Grand Theft Auto.
Douglas A. McIntyre is an editor at 24/7 Wall St. Mcintyre and Zelnick served together on the On2 Technologies board from 2000 to 2002.