Take-Two Delays Shareholder Meeting, Considers Selling
Publisher Take-Two delays meeting with shareholder and considers selling the company to fight shareholder takeover.
Management of Take-Two Interactive (TTWO), the publisher of Grand Theft Auto, delayed March 23's planned annual shareholder meeting to March 29 in order to consider alternative ways to increase shareholder value, namely selling the company. Those running the company are using the news as a defensive measure against the recent shareholder revolt and poor financial performance.
As part of the official announcement, Take-Two stated that their actions are "to provide additional time to review the proposed actions of the shareholder group and also to evaluate alternative courses of actions that could potentially be presented to the shareholders," including the sale of the company to a larger publisher such as Electronic Arts (ERTS) or a private equity firm. However, the company's statement made no guarantee that the sale would occur. "There is no assurance that any specific alternative proposal will be forthcoming."
Todd Mitchell, an analyst at Kaufman Bros. with a "hold" rating of TTWO's stock, doesn't see many options for Take-Two's executives if they want to deliver value to shareholders and keep their jobs. "I don't think they have much choice." Shares of Take-Two skyrocketed 7.9 percent at today's opening.