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.

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.

26 Comments

  • cjcr_alexandru

    Posted Mar 10, 2007 8:26 am PT

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

  • theKSMM

    Posted Mar 8, 2007 2:22 pm PT

    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

    Posted Mar 8, 2007 6:34 am PT

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

  • diangelogrey

    Posted Mar 8, 2007 4:01 am PT

    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

    Posted Mar 8, 2007 2:30 am PT

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

  • toad1956

    Posted Mar 7, 2007 11:58 pm PT

    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

    Posted Mar 7, 2007 8:09 pm PT

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

  • RaiKageRyu

    Posted Mar 7, 2007 6:26 pm PT

    They really do need that new managment

  • Cainekass29

    Posted Mar 7, 2007 5:36 pm PT

    I have a bad feeling about this....

  • Pete5506

    Posted Mar 7, 2007 5:18 pm PT

    what comthitnuong said

  • yinyang3

    Posted Mar 7, 2007 4:07 pm PT

    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

    Posted Mar 7, 2007 3:21 pm PT

    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

    Posted Mar 7, 2007 2:53 pm PT

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

  • Donkeljohn Site moderator

    Posted Mar 7, 2007 2:42 pm PT

    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

    Posted Mar 7, 2007 2:42 pm PT

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

  • polsci1503

    Posted Mar 7, 2007 2:15 pm PT

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

  • OfficialBed

    Posted Mar 7, 2007 2:14 pm PT

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

  • joker2763

    Posted Mar 7, 2007 2:10 pm PT

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

  • redskinStu

    Posted Mar 7, 2007 1:45 pm PT

    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

    Posted Mar 7, 2007 1:38 pm PT

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

  • reckeweg

    Posted Mar 7, 2007 1:37 pm PT

    Its about time they started cleaning house.

  • FilthyYamBag

    Posted Mar 7, 2007 1:20 pm PT

    great news.

  • Enterprise-E

    Posted Mar 7, 2007 1:04 pm PT

    These guys just can't get a break.

  • humptygrumpty

    Posted Mar 7, 2007 1:02 pm PT

    this better not screw any of their future releases!

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