Three directors nominated by the billionaire have resigned as part of the deal, under which Take-Two will pay $203.5 million in cash or cash equivalents for the 12.02 million shares Icahn owns. The "Grand Theft Auto" publisher saw its shares slide 5.4 percent as news of the deal came out.
Icahn has reaped an annualised return of 15 percent since 2010, when he first placed his own nominees onto the company's board. He has a history of buying big stakes in companies and pushing for corporate strategy or management change. In September, Take-Two scored an industry record after "Grand Theft Auto V" raked in $1 billion in sales in just three days after it was released for Sony Corp's PlayStation 3 and Microsoft Corp's Xbox 360.