Take-Two Denies Studio Layoffs

[Andy Chalk]

Take-Two Denies Studio Layoffs

Take-Two Interactive [http://www.take2games.com/] has denied reports that it intends to lay off up to 20 percent of its workforce in an effort to restructure and improve its financial standing, saying that cuts are being made but only at the corporate level.

It was EA [http://www.mcvuk.com/news/37419/Take-Two-to-drop-20-of-global-workforce] in a 2008 acquisition attempt.

Take-Two denied those reports in a statement, however, saying it does not intend to make reductions at the studio level and that reports to the contrary were "erroneous."

"As part of Take-Two's stated goal to maximize the efficiency of our business, we initiated a targeted restructuring of our corporate departments only in order to better align our resources with our current goals. Some of these changes were associated with the pending sale of our Jack of All Games distribution business," the company said. "To be clear, there were no reductions made at the studio level."

Regardless of where the cuts are taking place, it's worth noting that they're coming soon after activist investor Carl Icahn increased his stake in the company to slightly over 12 percent. In mid-January Icahn had three current members of the Take-Two Board of Directors replaced [http://www.escapistmagazine.com/news/view/97640-Carl-Icahn-Puts-the-Squeeze-on-Take-Two] with his own people and last week he picked up another million shares, fueling speculation that he wants to force a sale of the company.

Source: MCV [http://www.mcvuk.com/news/37425/Take-Two-denies-studio-layoffs]


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[Jared]

Well, I suppose its good no one is going to be laid off, its nice to hear that.

 

[Flying Dagger]

I have a hard time feeling sorry for people who have such awesome jobs

 

[WhiteTigerShiro]

Regardless of where the cuts are taking place, it's worth noting that they're coming soon after activist investor Carl Icahn increased his stake in the company to slightly over 12 percent. In mid-January Icahn had three current members of the Take-Two Board of Directors replaced [http://www.escapistmagazine.com/news/view/97640-Carl-Icahn-Puts-the-Squeeze-on-Take-Two] with his own people and last week he picked up another million shares, fueling speculation that he wants to force a sale of the company.

I guess I don't really understand the politics of how businesses work when it comes to stock market interactions. How does him buying shares and firing some execs "force a sale" of the company?

Anywho, it's hard to feel sorry for Take Two having problems. I'm still rather jaded from them ruining Borderlands on PC by cramming SecuROM down our throats and holding-back the patch that claims to fix multiplayer connectivity issues. And I'm not too happy with their smoke and mirrors hoax with Bioshock 2's DRMing. I say the more problems those scamming assholes can have the better, put those good games in the hands of someone more competent and less shady hopefully.

 

[Low Key]

Regardless of where the cuts are taking place, it's worth noting that they're coming soon after activist investor Carl Icahn increased his stake in the company to slightly over 12 percent. In mid-January Icahn had three current members of the Take-Two Board of Directors replaced [http://www.escapistmagazine.com/news/view/97640-Carl-Icahn-Puts-the-Squeeze-on-Take-Two] with his own people and last week he picked up another million shares, fueling speculation that he wants to force a sale of the company.

I guess I don't really understand the politics of how businesses work when it comes to stock market interactions. How does him buying shares and firing some execs "force a sale" of the company?

If he were majority share holder, he could vote to sell or merge practically on his own. Depending on how much the aquiring company wants to pay for each share, there will either be a protests or there won't.

He probably won't become majority share holder anytime soon, but if he convinces enough people to agree to a sale or merger, he can pull it off that way. Since he'll most likely ask share holders with lots of shares, it could be easy since they are poised to gain the most money and will still probably hold on to enough of their shares to continue having input.

 

[Simalacrum]

People say the recession is over, yet the gaming industry is still suffering... At least they're not laying off any staff just yet.

still... hmmmm... =\

 

[Andy Chalk]

I guess I don't really understand the politics of how businesses work when it comes to stock market interactions. How does him buying shares and firing some execs "force a sale" of the company?

Simplistically (because I'm no expert in the field), if he controls a large number of voting shares and has the board of directors stacked with his people, then he has de facto control over what the company does. Straus Zelnick spearheaded the effort against EA's attempt to buy out the company a couple years ago and the board rolled along with him, but if it were to happen again and Icahn decided he liked the offer and wanted it to happen, he'll have (or might have) the leverage to make the board overrule Zelnick and vote for the sale.

That may be kind of a shitty explanation, but I think it's reasonably accurate, as far as it goes.