Take-Two investors want new management

Group of shareholders unveil plan to give board of directors and CEO Paul Eibler the boot; stock jumps in response.

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A group of Take-Two Interactive investors has announced its intention to oust the publisher's CEO and replace its board of directors with its own slate of candidates at the company's next annual shareholders meeting.

According to a Reuters report, the group owns 46 percent of the company's stock. In a filing with the Securities and Exchange Commission, the group said it wants to reduce the company's board of directors to six members from nine, replacing the six incumbents with appointees of their own choosing. The group would then install former BMG Entertainment president and CEO Strauss Zelnick as the chairman of the board, where he would replace Take-Two CEO Paul Eibler and "review the employment status" of the company's CFO, Karl Winters.

Take-Two has suffered a number of high-profile setbacks in the last couple of years, from a hidden sex minigame being discovered in Grand Theft Auto: San Andreas to a stock option scandal that attracted multiple lawsuits, an SEC investigation, and criminal charges against its former CEO and founder. Shares of the company surged on news of the investors' plans, with the stock trading up $1.84 (10 percent) to $19.45.

Discussion

26 comments
cjcr_alexandru
cjcr_alexandru

As long as this doesn't mean that GTA IV will be delayed...

theKSMM
theKSMM

The stock option and "Hot Coffee" scandals, both damaging to the company, stem from completely different sources. It's not worth considering one solution to remedy both problems.

MASTERCHIEFUSMA
MASTERCHIEFUSMA

if they keep making good games who cares what they do with management

diangelogrey
diangelogrey

They are damned no matter what they do. You anti gta whiners complain no matter what. Its a shame you all spoil it for the people who actually enjoy these games. You dont hear us knocking the companies that bring you all barbie fun time and stuff..

wwonka666
wwonka666

What do people expect from the publisher who brought us a game where stealing cars and being a thug are glorified?

toad1956
toad1956

What they need is to better design games instead of issuing slop like Stronghold 2. I agree with VegetMaelstrom that better ethics and company policy is also need.

VegetaMaelstrom
VegetaMaelstrom

Wanted: Board Members for a troubled company. Good morals and ethics is a plus but not required.

RaiKageRyu
RaiKageRyu

They really do need that new managment

yinyang3
yinyang3

I can only hope for good games to continue to come out of Take-Two. A major shake-up could destroy all the cred that they've been receiveing.

Subacious
Subacious

Is it really great news though? At the moment, they don't **** up game franchises, atleast not their important ones. You don't see TakeTwo ruining the GTA franchise for example or rushing high profile games like Civ IV out the door before their done. Just my two cents

comthitnuong
comthitnuong

They need to regain the ground they lost. I don't think removing the CEO is going to do it.

Donkeljohn
Donkeljohn

This is a great example of shareholder rule over business governance. I hope their Battle of the Board is successful. Take-Two really has a lot of untapped earning potential. . .not just in the stock market, but also in the consumer marketplace.

BraindeadRacr
BraindeadRacr

Is it that they get paid extra if they do this? Cause, it seems that it's never gonna stop...

polsci1503
polsci1503

wonder if Thompson's resume just got emailed to them...

OfficialBed
OfficialBed

uh.....meh...if they will still make decent games, then sure, go for it

joker2763
joker2763

hopefully they will keep making good games even with a change of staff

redskinStu
redskinStu

Maybe R* will think twice next time about stupid $20 million bonuses to certain staff members and, instead, put the money into R & D.

peeweeshift
peeweeshift

as long as they keep making good games i don't care

reckeweg
reckeweg

Its about time they started cleaning house.

Enterprise-E
Enterprise-E

[This message was deleted at the request of the original poster]

Enterprise-E
Enterprise-E

[This message was deleted at the request of the original poster]

humptygrumpty
humptygrumpty

this better not screw any of their future releases!