Take-Two Interactive Buys Back Carl Icahn's Shares for $203.5 Million
Flush with cash from the success of "Grand Theft Auto V," the video game company says goodbye to the activist investor.
Billionaire investor Carl Icahn has sold back 12.02 million shares of Take-Two Interactive Software for $203.5 million.
The video game company announced the repurchase in a news release Tuesday. As part of the deal, the Icahn Group has given up three board seats. The shares were sold at Monday's closing price of $16.93 a share. The maker of Grand Theft Auto now has a board of five members and 81 million outstanding shares.
Take-Two says it is committed to more repurchases.
"This share repurchase reflects our confidence in the company's outlook for record results in fiscal 2014 and continued non-GAAP profitability every year for the foreseeable future," said CEO Strauss Zelnick. "With our ample cash and strong expected cash flow, we are able to pursue a variety of investment opportunities, including repurchasing our company's stock."
A big investor in media companies, Icahn last month divested half of his position in Netflix and has now been removed completely from Take-Two's business after acquiring about 11 percent of the company though purchases made when the company's stock was trading between $8 to $11 a share.
On Twitter, the billionaire is crowing at the state of his portfolio.
"Icahn Study shows value of activism," he tweeted. "28% annualized return for investor during our board membership periods."
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