Billionaire Carl Icahn buys a bunch more Take-Two stock

In a move drawing lots of interest on Wall Street, financier Carl Icahn has increased his ownership stake in troubled Take-Two Interactive from 2.5 percent to 11.3 percent.

Icahn has a history of pushing for either change in or the outright sale of companies he invests in. This has increased speculation that Take-Two will be up for sale in the near future, and as a result the company’s shares shot up 10 percent after word of Icahn’s purchase got out.

Despite hit franchises such as Grand Theft Auto and Midnight Club, Take-Two expects to report its second consecutive annual net loss in fiscal year 2010. Industry insiders are openly questioning the company’s management structure. The recent admission of Take Two CEO Ben Feder that he feels the company mishandled the release of downloadable GTA expansions will do little to restore faith.

Potential suitors for Take-Two could include Electronic Arts, the company that unsuccessfully tried to take over the Bioshock publisher in 2008. Electronic Arts declined any comment for the Reuters article. Other options could include selling off parts of the company such as its sports division.

Read [Reuters] Also Read [Gamertell]