It is the fourth time since Nov. 5 that Icahn has scooped up stock in Take-Two, known for its "Grand Theft Auto" game.

Shares of the company were little changed at $11.47 in after-hours trading, after closing on Nasdaq at $11.51 on Tuesday.

The New York City-based game publisher announced last month that "Grand Theft Auto V," the next installment of its popular action-adventure game franchise, was on track to be launched in spring 2013.

"As we get closer to GTA V, he's upping his stake," Sterne Agee analyst Arvind Bhatia said of Icahn's move. "This is just more endorsement of how he sees fundamentals of Take-Two developing."

Take-Two has long been considered a potential acquisition target -- Electronic Arts Inc made moves to buy it in 2008.

Also on Tuesday, Icahn reported he holds a 9.99 percent stake in Greenbrier Cos, fueling talk he may renew a failed 2008 bid for the railcar maker and pushing its shares up 20 percent.

Icahn recently took a 10 percent stake in Netflix Inc because he believes the company is undervalued and an attractive acquisition target.