Investing in Gaming Stocks: Take-Two on the Buyout Block?
By Ian Cooper
It was mid-March when we asked that you keep an eye on Take-Two Interactive ahead of the March 23, 2007 annual convening of shareholders. News was that a group of investors, including Oppenheimer Funds and SAC Capital Management (which control a combined 46% stake), were gearing up to vote for a new slate of director candidates at the upcoming annual TTWO meeting. There was even news that the group would seek to show the CEO the door and to review the current CFO.
This was no surprise. Considering everything shareholders have endured, they wanted a change.
But that was March 12, 2007. On Monday, bracing itself for shareholder revolt, the company delayed that March 23, 2007 meeting until March 29, 2007, saying it needs more time to review the proposed shareholder actions and evaluate alternative actions, which could include the sale of the company.
From what we’re heading, possible buyers could include the likes of Activision, Elevation Partners, and even Rupert Murdoch’s News Corporation. Even better for shareholders, those shorting 30 million shares (or 41% of the float) may soon rush to cover. There’s still plenty of time to buy Take-Two Interactive (TTWO) shares if you haven’t done so already.
Take care,
Ian L. Cooper, Editor, Early Alert Trader
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