Take-Two buys out Icahn for $203.5m
"With our ample cash and strong expected cash flow, we are able to pursue a variety of investment opportunities"
Take-Two Interactive Software has repurchased all of the Icahn Group's stock, a deal worth $203.5 million and involving 12.02 million shares.
"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 Take-Two 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. On behalf of our board and management team, I would like to thank Brett, James and Sung for their support, dedication and service to our organisation. They leave Take-Two better positioned than ever for continued success."
The move was funded by cash and cash equivalents on hand and Take-Two explained the move is "part of an ongoing strategy to buy back its shares."
Take-Two and Icahn gave no reason for the sale of the shares, but as previously agreed, Icahn's Brett Icahn, Jim Nelson, and SungHwan Cho and have resigned from the Take-Two board.
The Icahn Group is overseen by activist investor Carl Icahn and this year Forbes named him one of its 40 Highest-Earning hedge fund managers. In the past he's tried to acquire Dell, Marvel Comics and owns a ten percent stake in Netflix.
[UPDATE]: Investors did not greet the news warmly, as Take-Two shares traded at twice their average volume and ended the trading day down 5.49 percent to $16.