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Square Enix Bids For Eidos


Guest DarkMatchJobber

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Guest DarkMatchJobber

Just read this on http://gamespot.com

 

Tomb Raider publisher's board accepts £83 million offer, unanimously recommends deal to shareholders.

 

The identity of the company with which Eidos--formerly known as SCi Entertainment--entered takeover talks in Janurary has been revealed with the announcement today that the board of the beleaguered publisher had come to an agreement with Square Enix.

 

Talking about the deal, Square Enix president Yoichi Wada said: "Eidos' products are highly complementary to our business and will accelerate our aggressive expansion into Western markets." In the announcement of the offer, the Tomb Raider, Deus Ex, Hitman, Thief, Championship Manager, Just Cause and Kane & Lynch franchises were called out as being among "the world's leading videogame properties."

 

The Japanese publisher's offer of £84.3 million ($121 million) is being unanimously recommended to Eidos shareholders by the firm's board. That total represents an offer of 32 pence per share, which is more than triple the company's value when the approach was made, and double what the share price was when the London Stock Exchange closed yesterday. Since the announcement this morning Eidos shares have climbed further, peaking at 31.25p--a 123 percent rise from the opening bell.

 

The announcement follows the news in January, shortly before Eidos announced it had recieved and was considering a takeover approach, that sales of Tomb Raider Underworld had failed to meet expectations. Last year the company shed 20 percent of its workforce with its CEO admitting the company needed "immediate change" to deliver appropriate returns to its investors.

 

Square Enix has been looking for acquisition targets to expand its global reach for some time, with Wada saying that his firm was "talking with quite a few companies in and outside of Japan," with a view to acquisitions. The move follows the Japanese publishing house's unsuccessful $200m move for Tecmo, and comes as its own share price is in the doldrums, nearing a six-year low. The company also released its delayed revised financial projections for the current financial year, downgrading its expected net income by 62.5 percent, blaming conditions in the arcade and offline gaming segments of its business.

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Guest Al Stevens
I'm waiting for the day that Square turns Hitman into an RPG. :P

 

Nah, just kidding. I'm still hoping that Deus Ex 3 comes out.

 

If they ever did then I just go ape, I mean after the howler of a game within Kane and Lynch you wouldn't have blamed Eidos for going how they did. Same with Free Radicals after the frankly s**t game that was Haze I wasn't surprised to hear they was being brought out.

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