Carl Icahn Sells His Entire Take Two (TTWO) Stake Back to the Company

Take Two Interactive (TTWO) announced this morning that they would be repurchasing 12 million shares of their stock from the Icahn Group for $203.5 million. The move ends Icahn’s relationship with the company after an 81% return on his investment in TTWO. Three directors whom were placed on the board by the Icahn Group announced that they would be stepping down as per the buyback agreement. The 12 million shares bought back represent nearly 14% of the outstanding shares of Take Two stock as of yesterday’s close. Shares are down 4% currently today, however I view this news as being quite bullish and believe it shows that management also feels TTWO shares are being significantly undervalued at present levels. The repurchase was done outside of their existing buyback plan announced in February of this year that authorizes the company to repurchase an additional 7.5 million shares of stock. I currently view TTWO as a strong buy.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.