Take-Two Now Compliant, But Problems Persist

Stock Tickers: TTWO
Take-Two Interactive Software, Inc. (TTWO-NASDAQ) announced earlier this morning that The NASDAQ Stock Market notified Take-Two that it has regained compliance with NASDAQ’s listing requirements. As a result, Take-Two’s common stock will continue to be listed on The NASDAQ Global Select Market.

The company was not really at true risk of seeing its stock migrate tothe pink sheets.  There are still problems galore at this company.  ItsCFO just stepped down yesterday after he was placed on review by thenew investment group that seized control, effective immediately.  Itsprior officers are under investigation.  The company is now underformal SEC investigation. Stock options are an ongoing issue.  Therecent activist investor group that just wrangled control is not aclear buyout group with formal plans to take this private now that thecomboned group holds roughly 45% of the stock.

Now it is up to the company turning its internal controls and reportingaround.  The new Grand Theft Auto release scheduled for Q4 is alreadyunder fire and criticism, although it should have probably beenexpected since any game that rewards kids for shooting cops and beingcriminals has been under fire for years.  Unless there are hiddenissues, this one is at least expected to be a huge seller in number ofunits. 

So, the NASDAQ listing is now one less risk.  Time will tell if therest of the problems and risks can be mitigated.  TTWO is indicated upless than 1% pre-market after closing down 2% at $20.76 yesterday; its52-week trading range is $9.06 to $24.80.

Jon C. Ogg
April 10 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.