Take-Two being taken over
Investors in controversial videogames publisher and favorite lawsuit target Take-Two Interactive have revealed plans to take control of the board. Due to news of the planned management coup, the company’s shares jumped 18%.
According to the BBC News, documents filed with the US Securities and Exchange Commission revealed that the said investors will try to aim to oust chief executive Paul Eibeler and install Strauss Zelnick, ex-chief executive of BMG Entertainment (which, incidentally, sold its own gaming arm to Take-Two in 1998) as non-executive chairman.
The investors, who currently own 46% of Take-Two, also aim to review the position of chief financial officer, Karl Winters. Take-Two has been under fire for a string of financial irregularities. Last month, former Take-Two chief executive Ryan Brant was convicted of backdating stock options to increase their worth.
JP Morgan analyst Dean Gianoukos said that the change in management would be “a positive for the company, assuming key development personnel are retained.” Elizabeth Osur of Citigroup concurred, saying that the move was “long overdue”. Arvind Bhatia of Sterne, Agee & Leach warned, however, that Take-Two’s problems could not be solved “overnight”.
Via BBC News
Investors in controversial videogames publisher and favorite lawsuit target Take-Two Interactive have revealed plans to take control of the board. Due to news of the planned management coup, the company’s shares jumped 18%.
According to the BBC News, documents filed with the US Securities and Exchange Commission revealed that the said investors will try to aim to oust chief executive Paul Eibeler and install Strauss Zelnick, ex-chief executive of BMG Entertainment (which, incidentally, sold its own gaming arm to Take-Two in 1998) as non-executive chairman.
The investors, who currently own 46% of Take-Two, also aim to review the position of chief financial officer, Karl Winters. Take-Two has been under fire for a string of financial irregularities. Last month, former Take-Two chief executive Ryan Brant was convicted of backdating stock options to increase their worth.
JP Morgan analyst Dean Gianoukos said that the change in management would be “a positive for the company, assuming key development personnel are retained.” Elizabeth Osur of Citigroup concurred, saying that the move was “long overdue”. Arvind Bhatia of Sterne, Agee & Leach warned, however, that Take-Two’s problems could not be solved “overnight”.
Via BBC News
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