Take-Two Interactive Software, Inc
. is forging ahead without further guidance or input from billionaire investor Carl Icahn
, who agreed to sell back his 12.02 million shares in the company at yesterday's closing price of $16.93 per share. That works out to around $203.5 million, which Take-Two will fund from its cash reserve and cash equivalents on hand, the company announced.
"This share repurchase reflects our confidence in the company’s outlook for record results in fiscal 2014 and continued non-GAAP profitability every year for the foreseeable future," said Strauss Zelnick, Chairman and CEO of Take-Two. "With our ample cash and strong expected cash flow, we are able to pursue a variety of investment opportunities, including repurchasing our company’s stock."
Take Two Interactive has published a number of successful gaming franchises, including Rockstar Games' Grand Theft Auto series.
Board members Brett Icahn, Jim Nelseon, and SungHwan Cho are also parting ways based on an agreement Take Two and Carl Icahn made several years ago that if the Icahn Group ever sold its position, the Group's board designees would resign.
Depending on how much Icahn originally paid for his shares, it's estimated he stands to profit around $67 million by selling back his stake. Meanwhile, Take-Two's share price took a bit of a hit following news of Icahn's departure. Investors reacted somewhat negatively to the news, sending shares of Take-Two down 4.5 percent.