Publisher Take-Two fails to find a buyer as annual shareholder meeting approaches.
Take-Two Interactive (TTWO), whose recent battle with shareholders forced a delay to its annual meeting in order to find peace with its investors or sell the company, has released a statement stating that it will be unlikely to find an exit strategy has been found and will continue to discuss ways to please its shareholders.
Large stakeholders are glad to have the opportunity to take control of the company, at the meeting on March 29. Proxy Governance Inc. stated that the rebellious investors "should have sufficient votes to elect its slate without any shareholder support." Glass Lewis & Co. also commented on the options backdating scandal and its effect on the board directors' reputations. "Glass Lewis views option backdating as a particularly egregious action that warrants holding the appropriate management and board members responsible." Wedbush Morgan game analyst Michael Pachter finds the sale of the company to be unlikely. "This is crazy... I can't see a sale happening, unless there is truly a 'greater fool' out there."
Shares of Take-Two fell 5.3 percent following the announcement.
The brief release reads: "The Board of Directors now believes that it is unlikely to present alternative courses of action prior to the annual meeting on March 29th. The Company is continuing to have discussions with representatives of the shareholder group."