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.
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