In a widely expected outcome, during the Take-Two Interactive shareholders meeting a group of investors led by Oppenheimer Funds elected to remove CEO Paul Eibeler and establish a new board of directors. After a spate of PR snafus, internal and external investigations and the infamous Grand Theft Auto 3 "Hot Coffee" scandal, the company's investors had clearly had enough, electing Strauss Zelnick as chairman and instituted Ben Feder, an associate of Zelnick's, as interim CEO. "This is not going to be an easy task," said Zelnick. "But I think, and Ben thinks, that there's an awful lot of good stuff going on at Take-Two."
Reaction in the investment community was positive, though analysts noted the company's turnaround will take a concerted effort. "While the incoming board possesses a wealth of media experience, it faces a number of serious obstacles to a turnaround," Bear Stearns analyst Edward Urban wrote in a client note. Urban said the company might endure "a long and difficult transition." Shares rose four percent, to $21.94 in premarket Nasdaq trading.
Hopefully this move will set Take-Two down the path to regaining some stability so they can focus on what they do best, which is making kick-ass games!
For more, read the full report from The New York Times.
