The Take-Two Mutiny

[Glockstar]

Take-Two for sale?
Grand Theft Auto publisher announces it is considering putting itself up for sale in light of shareholder revolt.
By Emma Boyes, GameSpot UK
Posted Mar 19, 2007 6:55 am PT

Last week, the gaming industry was shocked by a Take-Two shareholders' group, which owns 46 percent of the company's stock, announcing that it wished to replace current CEO Paul Eibler with former BMG president Strauss Zelnick. It also stated its intentions to replace the current board of directors with candidates of its own choosing and reduce the number of members of the board from nine to six.

The rebellion came, reports Bloomberg, after five quarters of losses. The company has also faced a spate of bad news and scandals over the last two years, including the Hot Coffee mod furore, a stock-options scandal, and criminal charges being levelled at the former CEO and founder.

Take-Two has responded to the event by announcing that it will be postponing its annual meeting, originally scheduled for March 23, until March 29. This is in order for the company 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 a possible sale of the Company."

Shares in Take-Two jumped up 6.8 percent to $22.26 at the start of trading on the Nasdaq today. The shares have risen a total of 18 percent since the original announcement from the shareholders' group.

http://www.gamespot.com/news/6167588.html?om_act=convert&om_clk=newstop&tag=newstop;title;9

And I just read that Jack Thompson and and Rockstar/Take-Two are at it again. :rolleyes:

http://www.gamespot.com/news/6167585.html?om_act=convert&om_clk=newstop&tag=newstop;title;11

[Rogue Bounty Hunter]

Is there any company that wouldn't want to buy Take Two, including non-gaming companies?

[Glockstar]

Take-Two Ousts CEO
Out with the old, and in with the new.
by Micah Seff

March 30, 2007 - There were some massive upsets during the Take-Two's Annual Meeting of stockholders held this morning. In light of the legal inquiries and financial troubles that the company has been struggling through this past year, stockholders opted to oust several members of the board of directors, as well as Paul Eibeler, the company's former CEO.

Replacing Eibeler as CEO of take-Two is Ben Feder, a former executive at News Corp. Other new members of the board include Strauss Zelnick, Jon J. Moses, Michael Dornemann, and John Levy. Strauss Zelnick is stepping into the role of director of this newly-formed Board of Directors. Zelnick is a former high-level executive of several media conglomerates including Colombia Music, BMG Entertainment, and Crystal Dynamics. The Board expressed its intent to work closely with Paul Eibler to ensure a smooth transition.

"Take-Two has exceptional brands and creative resources, and we are thrilled to be able to work with the many talented people within the company," said Zelnick. "The new Board plans to put in place strategies designed to revitalize Take-Two, focus on supporting and enhancing its creative output, improve its margins and ensure that the 2007 release pipeline meets expectations. We are here to maximize the value of Take-Two for shareholders, for game consumers, and for the Company's employees."

Beyond this announcement, several other proposals were ratified during the meeting. A proposal that would amend Take-Two's Incentive Stock Plan by adding 2,000,000 shares of common stock reserved for issuance under the plan was approved.

Just how this will affect Take-Two moving into the future is unknown at this point. Hopefully, it means that the company will no longer have to resort to putting itself up for sale.

http://xbox360.ign.com/articles/777/777434p1.html

[Glockstar]

Take-Two confirms formal SEC investigation
New management inherits continuing stock option scandal as old CEO leaves with more than $2.4 million in severance pay.
By Brendan Sinclair, GameSpot - Posted Apr 5, 2007 12:25 pm PT

Take-Two Interactive shareholders cleaned house last week by voting out the publisher's entire board of directors and replacing it with a new crew headed up by former BMG Entertainment CEO Strauss Zelnick. While the people who helmed the company through the tumultuous years of the Hot Coffee and stock option scandals may be gone, their legacy continues to impact the company.

Last July, Take-Two Interactive revealed that it was cooperating with an "informal non-public investigation" by the Securities and Exchange Commission (SEC) in regards to stock option grants the company made dating back to the beginning of 1997. Yesterday the company revealed in an SEC filing that it had received a Formal Order of Private Investigation from the commission. As a result, the SEC can now subpoena witnesses related to the case.

Earlier this year, the publisher confirmed that there was "significant" mishandling of its stock options for years and pointed the finger at former CEO and founder Ryan Brant. Brant was later fined $6.3 million by the SEC and paid another $1 million to New York state and local authorities as part of a deal that included pleading guilty to first-degree felony charges of falsifying business records.

The SEC filing also includes details about the severance plan of former Take-Two CEO Paul Eibeler, whose employment with the company was officially terminated yesterday. While Eibeler will receive nearly $2.48 million in severance pay, he will also serve in an advisory role for the next six months. For his input, Eibeler will be given a total of $300,000, health care benefits, and a monthly car allowance of $799.

http://www.gamespot.com/news/6168651.html?om_act=convert&om_clk=newstop&tag=newstop;title;9