Take 2 could face takeover following shareholder action

March 9th, 2007, 20:10 Posted By: wraggster

Publisher Take 2 Interactive may undergo vast changes in the wake of its annual general meeting - including, potentially, a sale of the company or of some of its business units.

That's according to CNN columnist Chris Morris, who reported today on his CNN/Money column that many industry insiders are predicting that a shareholder revolt, aimed at taking over the board of directors, will succeed.

The investors behind the revolt currently hold 46 per cent of Take 2's shares - and with both financial and public relations catastrophes still besetting the publisher, it's certainly possible that they could oust the board and with it, current CEO Paul Eibeler.

According to Morris' sources, if that happens Take Two could be immediately put up for sale - with plenty of interested parties both inside and outside the videogames industry likely to want to get their hands on franchises such as Grand Theft Auto. Rupert Murdoch's News Corporation is cited as a potential suitor, for one; the firm has long been interested in moving into the game sector, and in the past has contemplated deals including a takeover of Electronic Arts, which was ultimately abandoned as too costly.

The other option, Morris says, is that parts of Take Two would be sold off - possibly divesting the firm of all of its divisions with the exception of the vastly successful Rockstar Games label and studios, which develop and publish titles such as Grand Theft Auto, Bully / Canis Canem Edit and others.

via gibiz

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