Take-Two spends R2-billion on share buyback

Take-Two Interactive Software is buying back 12.02-million of its shares from the Icahn Group’s stock for US$203.5 million, to be funded from Take-Two’s cash and cash equivalents.

On the back of the successful GTA V launch, which famously generated $1-billion revenue within 3 days, Take-Two shares hit a 5-year high of $19.25.

Several years ago the Icahn Group and Take-Two agreed that if the Icahn Group sold its position, the Icahn Group’s designees would resign from the Board.

Brett Icahn, Jim Nelson, and SungHwan Cho have now resigned from the Board, which will now comprise five members.

Following completion of the purchase, Take-Two’s basic shares outstanding will be approximately 81 million.

“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 Strauss Zelnick, Chairman and CEO of Take-Two. “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.