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Like many of America’s teens and twenty-somethings, legendary activist investor Carl Icahn has been anxiously awaiting the release of Grand Theft Auto V. He may never buy an actual copy of the video game, and he likely doesn’t spend a whole lot of time on an Xbox 360, but few stand to gain more from the highly anticipated release last Tuesday from Rockstar Games than the corporate agitator and billionaire investing savant, who has a 12.6% stake in parent company Take-Two Interactive Software, Inc TTWO -1.63%.
For Icahn, who has owned a sizable chunk of the company since 2009, the long wait is paying off: Through three days, GTA V — which spent about five years in production — grossed a record $1 billion in sales,, the company announced Friday. That eclipses the mark set for a video game by Activision’s Call of Duty: Black Ops 2, which took 15 days to hit $1 billion after its release last year. In anticipation, the stock has been steadily rising this year from $11.22 per share in January to $17.43 per share as of Friday — a 55% increase. Take-Two has come a long way since rejecting a $2 billion buyout offer from Electronic Arts Inc. in 2008 and then watching its valuation plummet by 75% by the following year. With 11.7 million shares, Icahn — who is worth more than $20 billion — is the largest individual shareholder of Take-Two, a company that has long justified its existence on the shoulders of its Grand Theft Auto franchise. Can betting heavy on the strength of one video game franchise really be a winning business strategy?