This is the second time in a week that Icahn has scooped up stock in Take-Two.
Shares of the company rose 2.8 percent to $11.17 in morning trade on Thursday.
"It seems like his buying is a vote of confidence in the pipeline of the company," said Sterne Agee analyst Arvind Bhatia. The next edition of its popular "Grand Theft Auto" video game is due out next year.
Take-Two has long been considered a potential acquisition target Electronic Arts Inc made moves to buy it in 2008.
Meanwhile, Icahn recently took a 10 percent stake in Netflix Inc because he believes the streaming video and DVD rental company is undervalued and an attractive acquisition target.
© Thomson Reuters 2012