Carl Icahn Puts the Squeeze on Take-Two
Billionaire investor and corporate raider Carl Icahn has in use his clout at Deal-Two to force a change in the company's directorate, replacing three members, including CEO Ben Feder, with his possess people.
Icahn, one of the richest men in the world, is a soul-described "stockholder active" notorious for his aggressive approaching toward companies he holds an stake in, much as when he launched an action against the Yahoo board of directors in 2008 after it was unable to seal the deal in an attempted buyout by Microsoft. Icahn eventually forced changes that included the expansion of the Yahoo plug-in to make room for the increase of three new members of his choosing, including Icahn himself.
And instantly, as the saying goes, it's like deja-vu all ended again, demur this time Icahn is throwing his muscle around at Take-Cardinal. Icahn increased his jeopardize in the society in Dec 2009 to become its second-largest shareholder and now he's using that position to do a little housecleaning: In exchange for voting for the company's full slate of board nominees at the 2010 stockholder meeting, three current members of the add-in give birth agreed not to abide for re-election in order to make elbow room for candidates of Icahn's choosing, including his son Brett.
The card members World Health Organization agreed to step aside are taking incomparable for the squad, said Chairman Strauss Zelnick, World Health Organization pointed out that Icahn was not quest the removal of whatsoever specialized people. Among them is Study-Two Chief operating officer Ben Feder, although he volition continue to hold the position of President at the company. "It's important to note that Mr. Icahn did not request that these directors in particular step down," Zelnick said. "They were willing to continue in their role but agreed non to stand out for re-election in keeping with their commitment to the company and hope to put the incomparable interests of stockholders first, as they have done throughout their tenure on the get on."
"Advancing our stockholders' interests is the board's guiding rationale, and it's in that spirit that we've undertaken a vary in board theatrical," he continued. "We give birth much to accomplish at Take-Two in the yr ahead, and we wanted the new directors World Health Organization each have experience in the show business and will help us achieve our objectives."
So why do we care if some super-rich guy flexes his corporate muscle and forces a few nameless executive types to barter seats? Because, as industry analyst Michael Pachter pointed out, Take-Two makes wondrous games but its committal to "commanding expectations and high quality standards" leads to delays and other problems that hamper its shipping schedules and, ineluctably, its value. "If Take-Two can deliver its franchises connected a more compressed schedule, its net profit power would essentially double, and the buy in would command a much higher price," Pachter said.
Icahn's not the kinda guy who will sit past quietly when atomic number 2 sees an opportunity to maximise profits and shareowner value, and if he happens to agree with Pachter's assessment we could be seeing some whips cracking and hammers falling at Take-Cardinal in very poor order. That might put Take-Two on a tighter and more reliable shipping schedule, merely looking it pessimistically, it could besides mean the lazy erosion of the company's overture to lineament game creation. We've seen it in front and we could be eyesight it again: Maximizing shareholder value and qualification great games preceptor't necessarily get going hand-in-hand.
https://www.escapistmagazine.com/carl-icahn-puts-the-squeeze-on-take-two/
Source: https://www.escapistmagazine.com/carl-icahn-puts-the-squeeze-on-take-two/