Take-Two CEO: We're Generating a Good Deal of Cash

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Nov. 26 (Bloomberg) -- Take-Two Interactive Chairman and CEO Strauss Zelnick discusses the company's business with Erik Schatzker on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Interesting question.

Dealing with carl icahn.

He has been in your kitchen for four years.

He had the representatives on take two's board.

What is your secret to your -- to dealing with him effectively.

That's carl was not on our board.

Right.

We pride ourselves on running a tight ship.

We had three great board members.

Lots of other ceos, at the sight of carl icahn, they go running for their lawyers and investment bankers.

This seems to have worked out well for all parties.

We have says we are here for our shareholders.

If you run a well-organized company, our company had no particular defenses.

We are here for shareholders.

When someone becomes your largest shareholder, they ought to have poor representation.

Dashboard representation -- board representation.

Did carl have ideas that they employed at take two?

Trying to deal with an activist effectively.

Carl icahn, dan loeb, lots of ceos have problems with this.

Is insane that you would not talk to all your shareholders, whether they sit on your board or not.

There -- i do not feel as if we have a monopoly on good ideas.

Generally, people who control big pools of capital, it did not just drop into their laps.

Carl shares ideas.

Some ceos do not take them.

Look at tim cook.

Carl is urging him to do a bigger buyback at apple.

Apple does not think it is a great idea.

We have always had a healthy board discussion and interaction.

Our board votes for the past four years have all been unanimous.

Let's talk about the $200 million.

It is more, if you include shares of take two -- we got back 4.2 million shares in market.

270 roughly.

Why is buying back stock now the best way to send $270 million.

Seven years ago, this company was relatively trouble when we took it over.

That is an understatement.

It has been a wonderful story due to that work the team has done.

We are having -- having refinanced our 4.375% convertible bonds and we are beginning to have a great deal of cash generated through operations and financing.

We have an opportunity to do a multiplicity of things.

You can reinvest in the business, acquired businesses, and you can return capital to shareholders.

Do you worry about the precedent that it might set?

The idea, whether it is carl icahn, dan loeb, the lachman -- bill ackman --that someone can buy a bunch of socks, get a seat on the board, and then buyout.

People look at this in a big picture sense.

It does not create value for the company.

The days of -- in those instances, the agitating shareholders bought out at a premium.

Those days -- that is a decade old.

In this situation, we bought at the open market at a price of 17.38, we disclose to the icon -- the ichan bl -- the icahn block.

What are you going to do with the board now that carl icahn's representatives are gone?

We will potentially add some members.

What about a company, everybody wants to know where you are taking take two.

Are you going to be a consolidator or a consolidatee.

We have the capital and the intellectual property as well as the creative team to become a consulta -- consolidator.

One of the unanswered questions was how will that go, the answer is really well.

How are our games going?

Extraordinarily well.

Mba is one of the highest rated games -- nba is one of the highest-rated games for the new generation of consoles.

The last time we did not launch gta, we had $1 billion in revenue.

This year, we are projecting $2.3 million in revenue.

We went to grow organically.

The question is whether we can add onto that in organically.

But the opportunity is there.

To do more than one thing.

You can consolidate within the gaming industry.

Maybe it is worthwhile to take a look at activision or electronic arts.

Or broadening your vision to look at other media.

We are looking at anything for the shareholders.

When we look at m&a, we look at it through the lens of immediate accretion.

Long-term accretion comes from strategic vision.

We have proven that we have a handle on digital future.

We have a handle on how to manage content in the future.

We ought to examine any number of opportunities within the context of what our dna is.

Which is making great digital entertainment properties and marketing and distributing them worldwide.

That could and certainly -- we contemplate other forms of media apart from interactive media.

We have not made any decisions.

You made reference to the fact that your titles are doing well.

Grand theft auto 5 was for sure.

What comes next?

We do have the extraordinary collection of intellectual property.

We have a history of launching sequels to our franchises while every year launching at least one new game.

That is what i am getting at.

Both of our labels are focused on that.

We have 10 titles in development for next agenda.

-- next gen.

Chairman and ceo of take two, buying back -- playing out carl

This text has been automatically generated. It may not be 100% accurate.

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