Carl Icahn


According to a form 4  filed with the SEC, Carl Icahn has boosted his stake in Take-Two Interactive Software, Inc. (NASDAQ:TTWO), yet again. Prior to Friday, Carl Icahn owned a 11,710,985 shares in the Gand Theft Auto maker, or 12.90% of shares outstanding. With the latest purchase of 309,759 shares, Carl Icahn owns 12,020,744 shares or a 13.4% stake.

Famous for his activism, Carl Icahn has not made any statement indicating that he would wage a proxy war, or try to implement changes in the company. However, the fact that Icahn has been continuously boosting his stake in TTWO over the past few weeks, could be a sign that a fight is coming.

The New York, based company, reported earnings on October 31st. TTWO reported better-than-expected F2Q results on stronger-than-expected sales of Borderlands 2 with revenue of $288mn and EPS $0.11 versus street estimates of $240mn and ($0.18), respectively.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) provided FY13 EPS guidance at $2.00+ for several quarters before start of the year, but did not guide FY14 in release. Due to the delay of Grand Theft Auto 5 to FY14, many analysts have lowered their estimates for the next several quarters. The delay of Grand Theft Auto 5, the company’s modest net cash position and lack of diversification away from the console, has concerned some investors.

In addition to Grand Theft Auto – one of the most valued titles in the games industry – the company has a portfolio of other core franchises such as Red Dead, BioShock, 2K NBA and Max Payne.

The companies main competitors include, Electronic Arts Inc. (NASDAQ:EA), and Activision Blizzard, Inc. (NASDAQ:ATVI)

For the six months ended 30 September 2012, Take-Two Interactive Software, Inc. (NASDAQ:TTWO), Inc. revenues increased 13% to $499.2M. Net loss before extraordinary items increased from $55.9M to $123.2M. Revenues reflect United States segment increase of 27% to $259.1M, Canada segment increase of 22% to $44.9M. Higher net loss reflects Selling and marketing increase of 40% to $144.9M (expense), Interest and other, net increase of 93% to $15.5M (expense).

Disclosure: No position in any securities mentioned.