Is it because he's afraid of a wider market pullback? Does he think that TTWO doesn't go much higher and thinks there's more upside to another stock, like Apple? Or was he counting on a buyout deal from EA, ATVI etc that either fell through or didn't materialize? Or maybe he's just taking his profits off the table like he did with Netflix and Lionsgate, both of which went higher after he left.
last monday Icahn said he could see a big drop in US equities, and the entire market sold off. he's 'very cautious' right now. He could just be raising some cash for the drop he is anticipating.
This is a mixed bag as the float is now considerably smaller yet Icahn did sell for a reason (ahheem I know this is old news bellic give me a pass please!). With the new share count we stand to make over $4 in FY14
Console gaming market segment downtrend? TTWO could capture a larger percentage of revenue in this segment, but if the segment is in a longterm downward trend that could make it increasingly difficult to reach new PPS highs. I'm bullish on this stock but I also assume Icahn's analysts know much more than I do - their selling is unsettling.
Icahn did not have the type of inside information and control with LGF and NFLX as he did with TTWO.
This position in TTWO was peanuts for Icahn. He's got billion dollar positions elsewhere and this just raised him some cash. For him to get out says a ton about the company's future.
True. I think its as simple as Icahn wanted a sale and Zelnick still wants to milk the company. Icahn had an agreement with Zelnick to not publicly complain for the board seat so he he couldn't scream and yell like he normally does. So he just sold out and moved on to a more significant holding.
The positives to today is the lowered float and now that Icahn's leverage is gone, another activist or PE firm with deep pockets can move in and overpower Zelnick.
So Rusty what do you suspect that Icahn knows that we don't? Zelnick has promised 10 new titles, do you think that Icahn knows these are going to be bad? But really though, what does Icahn know about video games anyway? I think he was only invested because he wanted to do something for Brett and that Brett was the one who liked this company. Maybe Icahn went against Brett's wishes and pulled out like he did with NFLX
Have you ever thought all Icahn wanted is influence on the board's activity. Maybe he thought a selling threat would help, but was unprepared for Zelnick to respond almost simultaneously. Don't forget Zelnick has half the voting at Take Two, unlike Icahn, he probably got about 1 at most.
To be honest this possibly increases the chances of an acquisition. Who the heck would want to buy a company when you gotta get approval from Icahn and cronies. Personally I think they love making great video games and don't care too much about shareholders. I would not be worried holding stock, options are another thing though, much harder to time. I've been crushed on options but I still think the company could be the top game developer three years from now.
No, it decreases the chances of an acquisition. That must have been Icahn's big play with the Board members too. He would try to generate interest for an offer, then dump into that spike. What does he care what happens after that? If the offer falls through he can repeat the game at GTAVI time.
Not likely. The incredible rise of Steam memberships could help their AAA high review score back catalog of games. However, their footprint in mobile is anemic, their game budgets too big, game delays too long, ip too few and games too similar (open world). They dont need to d everything.They really just need to eliminate the delays and bring about new IP. The rumour that a Bully sequel is in the works should anger shareholders. The game sold like #$%$, is another "me too" open world experience, and will face serious headwinds as bullying has been a top social priority lately. Stupid stupid ip to spend money on.