Take-Two plans for growth, not sale

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(Adds background on company, Zelnick comment on game, stock price)

NEW YORK, Nov 26 (Reuters) - Take-Two Interactive Software Inc (TTWO.O) Chairman Strauss Zelnick, head of a new management team, said on Monday he prefers to run the publisher of "Grand Theft Auto" rather than sell it, and sees growth in jobs rather than cuts.

"I'm much more interested in growing the business than in selling it, to be clear," Zelnick told the Reuters Media Summit in New York. "I would say for the next five to seven years this is a terrific time to be in the video game business."

There has been much talk among industry analysts this year that Take-Two could be sold to a larger video game company such as Electronic Arts Inc (ERTS.O).

Zelnick, who led a group of investors in ousting Take-Two's former management in March, said the company was "a very efficient enterprise now" as a result of recent divestitures, such as its gaming accessory business.

"I imagine we will try to find greater efficiencies but they probably won't be through headcount. I imagine head count will grow. This is a growth business. We are in growth mode," Zelnick said.

Zelnick, who has a reputation as a turnaround artist for ailing companies, said he tried to time his entry into video games ahead of an expected growth spurt as more consumers buy new home gaming systems like Microsoft Corp's (MSFT.O) Xbox 360 and Sony Corp's (6758.T) PlayStation 3.

He said the next installment of Take-Two's blockbuster "Grand Theft Auto" franchise was benefiting from a delay in its release date from October to next spring.

"I believe this release, 'Grand Theft Auto IV,' is going to be vastly better than those expectations, vastly better, and that's hard to do when expectations are so high," Zelnick said.

Shares in Take-Two fell 1 percent to close at $14.58 on Nasdaq. Over the past year, the stock has fallen 17 percent, compared with a fall of 8 percent for Electronic Arts and a rise of 11 percent for Activision Inc (ATVI.O).

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(Reporting by Gina Keating and Scott Hillis; Editing by Braden Reddall)

((scott.hillis@reuters.com, +1 415 677 2505)) Keywords: MEDIA SUMMIT/TAKETWO

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