Eidos Buy-out Rumour Continues

Since we reported the rumour last week that THQ was planning to buy out Eidos Interactive, wide-eyed stockbrokers and business analysts have been trying to next guess the most likely outcome of this proposal. In the absence of any official announcements from either THQ or Eidos, speculation has continued to gather pace.

THQ would be a feasible candidate for the bid, having just recorded a record-breaking financial year. Netting $641 million (nearly a 40% increase from 2003) and wielding reliably popular franchises like WWE, Finding Nemo and Spongebob Squarepants, the US publisher would be in a position to make such a move if it desired.

The Observer (16.5.04) however, has put other major publishers in the frame too, suggesting that both Electronic Arts and Activision could quite reasonably consider such an acquisition. Quite apart from the straightforward benefits of economies of scale, the giant publishers would also gain control of IO Interactive (creators of Hitman) which is likely to be involved in some of the best sellers of the future.

If all these companies are sniffing around, it’s hardly surprising to learn that Ubisoft is also contemplating a bid. Indeed, no publisher with the capacity to rustle up £325 million could afford to ignore the possibilities. Whichever one (if any) does complete the successful takeover of Eidos will be in a truly dominant position, looming large over all its competitors.