Board Highlights
Topic List Post New Topic


Rap Sheet


Perry Rod




06/29/10 at 8:55 AM CDT



READ: 945







Take Two Interactive, Inc. CEO Ben Feder: ?I don?t run my business to please the analyst community?

In an article published yesterday, Take Two Interactive [NASDAQ:TTWO] CEO Ben Feder stated, “I don’t run my business to please the analyst community.”

It’s no wonder, of course, that interactive entertainment analysts are equally unimpressed with Take Two Interactive stock.  Indeed, Take Two management routinely appears to act with disdain toward analysts on live conference calls who ask for more transparency from the company.  If you need an idea of what modern day American royalty sounds like, listen to a Take Two Interactive quarterly conference call.

The vanity of Take Two Interactive’s management did not begin there.  Take Two’s Chairman Strauss Zelnick rejected a $26 buyout offer from Electronic Arts in 2008 and then saw the stock crater to single digits.  As a reaction, he imperviously stated, “I don’t engage in regrets.” [Zelnick: No Regrets, No Responsibility]

Perhaps he should as the stock still trades in single digits today.  And perhaps CEO Feder needs to explain how exactly they are running this business, a publicly traded company which he calls “my” business.  The investment community, for example, wonders when they should expect sequels to important franchises.  ‘Whenever we’re ready to announce a sequel’ is not an appropriate answer, it is an insult to investors and potential investors who fear that the company lacks financial discipline and does not make common sense decisions.  Will their latest hit game see a sequel in two years, which may dramatically improve future prospects?  Shareholders have no idea and receive no guidance.

Zelnick Media was chosen by a shareholder revolt at Take Two despite the fact that Mr. Zelnick, Mr. Feder and crew did not appear to have previous leadership experience at publicly traded companies.  A few years later they still seem to require more on-the-job training.  For instance, Mr. Feder should become aware that part of his job is, in fact, to please the analyst community.  Take Two Interactive is a for profit business owned and priced by shareholders, not an art house with unlimited financing of an arrogant management’s lifestyle.

Perhaps Mr. Zelnick's friend Mr. Icahn will pass on this message to their management team.

Copyright 2014 All Rights Reserved; Patent Pending