As part of the company's ongoing plan to buy back its shares, Take-Two Interactive announced today that it has purchased all stock in the company held by investment firm the Icahn Group for approximately $203.5 million.
The purchase was made at yesterday's closing market price of $16.93 per share for Take-Two's stock, and includes 12.02 million shares.
Take-Two reports that several years ago, the company and the Icahn Group agreed that if the latter sold its position, the Icahn Group's designees would step down from the company board. As a result, three board members have resigned — Brett Icahn, SungHwan Cho and Jim Nelson — bringing the total board members down to five. These remaining five members are "committed to revisiting the size and composition of the board and its committees," Take-Two reports.
Following its purchase from the Icahn Group, Take-Two's outstanding basic shares total approximately 81 million. While today's repurchase is part of Take-Two's strategy to buy back its shares, the purchase from Icahn Group was outside its current repurchase program. Currently Take-Two has repurchased 4.2 million shares in the open market to date at an average of $17.38 per share.
"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 Chairman and CEO of Take-Two Strauss Zelnick said in a press statement. "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."
Take-Two reported rising revenues in its latest financial statements, crediting Rockstar Games' Grand Theft Auto 5 as the largest contributor to the company's earnings for Q2 2014.