NEW YORK (AP) — Take-Two Interactive Software Inc. said Tuesday that it bought back all of the Icahn Group's Take-Two stock, prompting the resignations of the Icahn-backed members of its board.
The video game publisher best known for its line of "Grand Theft Auto" games said the stock was repurchased at Monday's closing price of $16.93 per share. That amounted to a total of about $203.5 million for the 12.02 million shares.
The deal will be funded with cash and cash equivalents on hand, Take-Two said.
The company said it stuck a deal several years ago with the company controlled by activist investor Carl Icahn for Icahn's designees to resign from the board if the company ever sold its stock. As a result, Brett Icahn, Jim Nelson, and SungHwan Cho have left the board and it's now comprised of five members.
Once the deal closes, Take-Two will have about 81 million basic shares outstanding.
The deal was made outside of the company's existing stock buyback program under which it can repurchase 7.5 million shares. Under that authorization, Take-Two has so far bought back 4.2 million shares on the open market at an average price of $17.38 per share.
The deal was expected to close later Tuesday.
Take-Two shares fell 68 cents, or 4 percent, to $16.25 in morning trading. Its shares had risen almost 54 percent so far this year.