Editing Take-Two Interactive (section)

=== 2007–2008: Shareholder takeover and attempted buy-out ===
A fire had damaged part of the Take-Two headquarters building in New York in 2006. In early January 2007, Take-Two relocated the headquarters for 2K to [[Novato, California]] to 65,000 square feet of space at Hamilton Landing, an office park that had repurposed the former hangar structures from the [[Hamilton Army Airfield]].<ref>{{cite web |url=http://www.barkerpacificgroup.com/pages/news_full-article.php?id=81 |title=Hamilton Landing is flying high |website=Barker Pacific Group |access-date=September 5, 2018 |archive-url=https://web.archive.org/web/20180904121246/http://www.barkerpacificgroup.com/pages/news_full-article.php?id=81 |archive-date=September 4, 2018 |url-status=live}}</ref> Later that year in September, Take-Two established a partnership with [[Nickelodeon]] and launched a new label, [[2K Play]], designed for publishing of family-friendly titles alongside 2K's 2K Games and 2K Sports sub-labels, absorbing the remaining publishing duties of the Global Star label.<ref>{{cite web |url=https://www.hollywoodreporter.com/news/take-two-nick-team-games-149891 |title=Take-Two, Nick team on games |first=David |last=Ward |date=September 11, 2007 |access-date=September 4, 2018 |agency=[[Associated Press]] |website=[[The Hollywood Reporter]] |archive-url=https://web.archive.org/web/20180904121236/https://www.hollywoodreporter.com/news/take-two-nick-team-games-149891 |archive-date=September 4, 2018 |url-status=live}}</ref> In December 2007, Take-Two established [[2K Marin]] (named after [[Marin County, California|Marin County]], where Novato is located) and expanded its presence at Hamilton Landing.<ref>{{cite web |url=https://www.gamedeveloper.com/game-platforms/take-two-opens-new-marin-2k-studio |title=Take-Two Opens New Marin 2K Studio |first=Leigh |last=Alexander |date=December 17, 2007 |website=[[Gamasutra]] |access-date=February 24, 2018 |archive-url=https://web.archive.org/web/20180225064810/https://www.gamasutra.com/view/news/107616/TakeTwo_Opens_New_Marin_2K_Studio.php |archive-date=February 25, 2018 |url-status=live}}</ref><ref>{{cite web |url=https://www.gamesindustry.biz/articles/take-two-opens-new-californian-studio |title=Take Two opens new Californian studio |first=Matt |last=Martin |date=December 17, 2007 |website=[[GamesIndustry.biz]] |access-date=February 24, 2018 |archive-url=https://web.archive.org/web/20180224173408/https://www.gamesindustry.biz/articles/take-two-opens-new-californian-studio |archive-date=February 24, 2018 |url-status=live}}</ref>

[[File:Strauss Zelnick, 2015 (16339090774).jpg|thumb|left|150px|Zelnick in 2015]]
Due to the various SEC investigations and the ''Hot Coffee'' controversy, investors in Take-Two discussed the possibility of taking over the company at its next board meeting in March 2007 and oust the current management. There were also issues with Take-Two failing to make its revenue targets, having lost {{USD|163.3 million}} in 2006.<ref name="Stockholders">{{cite web |url=https://www.nytimes.com/2007/03/30/technology/30game.html |title=Stockholders Oust Chief at Take-Two |first=Jeremy |last=Peters |date=March 30, 2007 |access-date=September 3, 2018 |website=[[The New York Times]] |archive-url=https://web.archive.org/web/20180903215538/https://www.nytimes.com/2007/03/30/technology/30game.html |archive-date=September 3, 2018 |url-status=live}}</ref> Investors OppenheimerFunds Inc., S.A.C. Capital Management, Tudor Investment Corp., D.E. Shaw Valence Portfolios and [[ZelnickMedia]] held 46% of the company's stock at this point, and were looking to put ZelnickMedia's [[Strauss Zelnick]] as the chairman of the board while ousting long-standing management and board members. Zelnick had previously been president and CEO of BMG's North American division at the time of the sale of BMG Interactive to Take-Two, a move he had been against, believing that BMG could have capitalized on the video game sector more. Following BMG, Zelnick had been COO of [[20th Century Fox]] and CEO of [[Crystal Dynamics]]. He founded ZelnickMedia in 2001 as a private equity firm to focus on media and interactive entertainment investments.<ref>{{cite web |url=https://www.musicbusinessworldwide.com/was-this-the-biggest-mistake-in-the-history-of-the-music-business/ |title=Was This The Biggest Mistake In The History Of The Music Business? |first=Tim |last=Ingram |date=November 11, 2018 |access-date=November 13, 2018 |website=[[Music Business Worldwide]] |archive-url=https://web.archive.org/web/20190227021744/https://www.musicbusinessworldwide.com/was-this-the-biggest-mistake-in-the-history-of-the-music-business/ |archive-date=February 27, 2019 |url-status=live}}</ref> Industry analyst Michael Pachter stated that a takeover would be best for Take-Two, as the present management "completely abdicated any responsibility for the oversight of the options-granting policy. A more responsible board would have committed hari-kari."<ref>{{cite web |url=https://www.reuters.com/article/us-taketwo-sac/take-two-investors-plan-board-takeover-idUSN0720216920070308 |title=Take-Two investors plan board takeover |first1=Lisa |last1=Baertlein |first2=Ritsuko |last2=Ando |date=March 7, 2007 |access-date=September 3, 2018 |website=[[Reuters]] |archive-url=https://web.archive.org/web/20180903215449/https://www.reuters.com/article/us-taketwo-sac/take-two-investors-plan-board-takeover-idUSN0720216920070308 |archive-date=September 3, 2018 |url-status=live}}</ref> CEO Paul Eibeler, who had replaced Brant after his resignation, had tried to find a buyer for Take-Two after the investors filed their intent with the SEC. Among the potential buyers were EA,<ref name="Riccitiello">{{cite web |url=https://www.gamasutra.com/view/news/108548/QA_EA_CEO_John_Riccitiello_On_The_TakeTwo_Offer.php |title=Q&A: EA CEO John Riccitiello On The Take-Two Offer |first=Christian |last=Nutt |date=February 25, 2008 |access-date=September 3, 2018 |website=[[Gamasutra]] |archive-url=https://web.archive.org/web/20180903215441/http://www.gamasutra.com/view/news/108548/QA_EA_CEO_John_Riccitiello_On_The_TakeTwo_Offer.php |archive-date=September 3, 2018 |url-status=dead}}</ref> but a deal could not be negotiated before the meeting. The takeover was successfully agreed to by stockholders on March 29, 2007, with Zelnick naming [[Ben Feder]], a partner at ZelnickMedia, as the new CEO.<ref name="Stockholders" /> {{As of|2015|7}}, Strauss Zelnick is the largest single shareholder by voting power.<ref>{{cite web |url=http://fortune.com/2015/07/01/strauss-zelnick-take-two/ |title=Take-Two's Strauss Zelnick publishes big games, but doesn't play them |first=Chris |last=Morris |website=[[Fortune (magazine)|Fortune]] |access-date=June 16, 2017 |archive-url=https://web.archive.org/web/20170605204708/http://fortune.com/2015/07/01/strauss-zelnick-take-two/ |archive-date=June 5, 2017 |url-status=live}}</ref>

The company announced a major restructuring in mid-2007, following the takeover. With the move of the 2K labels to Novato, the executive, management, distribution and sales areas were evaluated to align these by business discipline rather than geography.<ref>{{cite web |url=https://www.gamedeveloper.com/game-platforms/take-two-announces-restructuring-plans-new-cfo |title=Take-Two Announces Restructuring Plans, New CFO |first=Brandon |last=Boyer |date=June 11, 2007 |access-date=September 10, 2018 |website=[[Gamasutra]] |archive-url=https://web.archive.org/web/20180910204637/http://www.gamasutra.com/php-bin/news_index.php?story=14290 |archive-date=September 10, 2018 |url-status=live}}</ref> Subsequently, the company let go about 5 to 15% of its approximately 2100 employees, closed down some of its European offices and centralizing these in its Geneva location, and looked to get out of the distribution market by looking for buyers of Jack of All Games.<ref>{{cite web |url=https://www.gamedeveloper.com/game-platforms/take-two-clarifies-staff-shifts-analyst-speculates-on-sale |title=Take-Two Clarifies Staff Shifts, Analyst Speculates On Sale |first=Brandon |last=Boyer |date=June 14, 2007 |access-date=September 10, 2018 |website=[[Gamasutra]] |archive-url=https://web.archive.org/web/20180910204657/http://www.gamasutra.com/php-bin/news_index.php?story=14223 |archive-date=September 10, 2018 |url-status=live}}</ref><ref>{{cite web |url=https://www.gamedeveloper.com/game-platforms/report-take-two-to-announce-major-european-layoffs |title=Report: Take-Two To Announce Major European Layoffs |first=Jason |last=Dubson |date=June 15, 2007 |access-date=September 10, 2018 |website=[[Gamasutra]] |archive-url=https://web.archive.org/web/20180910204647/http://www.gamasutra.com/php-bin/news_index.php?story=14340 |archive-date=September 10, 2018 |url-status=live}}</ref>

In mid-February 2008, EA made a {{US$|25}}-per-share all-cash transaction offer worth around {{USD|1.9 billion}}<ref>{{cite web |url=https://arstechnica.com/gaming/2008/02/eas-bid-for-take-two-is-bad-news-for-sports-gaming/ |title=EA's $2 billion bid for Take Two bad news for sports gaming |website=[[Ars Technica]] |date=February 25, 2008 |access-date=June 15, 2017 |archive-url=https://web.archive.org/web/20170922095835/https://arstechnica.com/gaming/2008/02/eas-bid-for-take-two-is-bad-news-for-sports-gaming/ |archive-date=September 22, 2017 |url-status=live}}</ref> to the board of Take-Two, subsequently revising it to {{US$|26}} per share after being rejected and making the offer known to the public.<ref>{{cite web |last=Terdiman |first=Daniel |url=https://www.cnet.com/news/ea-tries-to-buy-take-two-to-keep-its-top-spot/ |title=EA tries to buy Take-Two to keep its top spot |website=[[CNET]] |date=February 24, 2008 |access-date=March 24, 2009 |archive-url=https://web.archive.org/web/20150923230748/http://www.cnet.com/news/ea-tries-to-buy-take-two-to-keep-its-top-spot/ |archive-date=September 23, 2015 |url-status=live}}</ref> At the time, Take-Two's stock was valued around {{US$|10}} per share.<ref>{{cite web |url=https://www.gamespot.com/articles/take-two-ceo-resigns-chairman-taking-over/1100-6283246/ |title=Take-Two CEO resigns, chairman taking over |first=Tor |last=Thorsen |date=October 29, 2010 |access-date=September 5, 2018 |website=[[GameSpot]] |archive-url=https://web.archive.org/web/20180905180145/https://www.gamespot.com/articles/take-two-ceo-resigns-chairman-taking-over/1100-6283246/ |archive-date=September 5, 2018 |url-status=live}}</ref> EA CEO [[John Riccitiello]] said that EA had previously considered a deal for Take-Two in the previous year when they were approached by Eibeler,<ref name="Riccitiello" /> however, with [[Activision]]'s acquisition of [[Vivendi Games]] in December 2007, EA was looking to resecure itself as one of the top video game publishers with the acquisition of Take-Two. While Take-Two had been discussing the potential of a buyout to a large media company after the shareholder takeover, Zelnick and the board rejected the offer, with Zelnick stating "We didn't slam the door, we just said look, the price is not right and the time is wrong".<ref name="1.9">{{cite web |url=https://www.cnbc.com/2008/02/25/taketwo-rejects-electronic-arts-19-billion-offer.html |title=Take-Two Rejects Electronic Arts' $1.9 Billion Offer |website=[[Reuters]] |via=[[CNBC]] |date=February 25, 2007 |access-date=September 3, 2018 |archive-url=https://web.archive.org/web/20180903215504/https://www.cnbc.com/id/23332933 |archive-date=September 3, 2018 |url-status=live}}</ref> Take-Two offered to discuss the offer after ''[[Grand Theft Auto IV]]''{{'s}} release on April 29, 2008, which many considered to be the lucrative property that EA desired.<ref name="1.9" /> An acquisition would have ended EA's main competition in sports video games.<ref>{{cite web |url=http://www.ign.com/articles/2008/02/27/if-ea-bought-2k |title=If EA Bought 2K |website=[[IGN]] |date=January 6, 2008 |access-date=March 24, 2009 |archive-url=https://web.archive.org/web/20120922004127/http://www.ign.com/articles/2008/02/27/if-ea-bought-2k |archive-date=September 22, 2012 |url-status=live}}</ref> EA continued to extend its bid offer throughout 2008, but by September 2008, EA decided to back away and let the offer expire, as Take-Two continued to call EA's cash offer as inadequate.<ref>{{cite web |url=https://www.reuters.com/article/us-taketwo-electronicarts/electronic-arts-ends-merger-talks-with-take-two-idUSN1439228620080915 |title=Electronic Arts ends merger talks with Take Two |first=Anupreeta |last=Das |date=September 14, 2008 |access-date=September 3, 2018 |website=[[Reuters]] |archive-url=https://web.archive.org/web/20180903215441/https://www.reuters.com/article/us-taketwo-electronicarts/electronic-arts-ends-merger-talks-with-take-two-idUSN1439228620080915 |archive-date=September 3, 2018 |url-status=live}}</ref>