Eidos Buyout Rumours Intensify - EA in the Frame
Eidos admits to 'possible business combinations'.
Since before E3 this year, rumours had been circulating around the industry suggesting Eidos was the target of various corporate buyout attempts. Indeed, Eidos had voiced concerns about a lack of capital to pursue certain projects, whilst other large publishers have expressed an interest in expanding.
Despite the logical implication of an acquisition, Eidos had previously denied all knowledge of any such move, issuing a statement back in May saying “In the light of continued media speculation concerning a possible approach to the company, the board can confirm that it has received no such approach and is not in discussions with any party concerning a possible offer.” However, following a rise in share prices after the announcement of the console version of Championship Manager 5, Eidos has changed it tune.
In an official statement issued to the London Stock Exchange, Eidos has now confirmed that “It is in preliminary discussions with a small number of parties in relation to possible business combinations”. Whilst these ambiguous ‘business combinations’ could pertain to any number of deals, it’s most likely to involve one of the publishers previously rumoured to be working on some form of acquisition.
The interested parties have been suggested as Activision, Ubisoft and Electronic Arts, with EA seeming like the most realistic prospect. The bill for Eidos would likely exceed $325 million, and EA could actually afford that, although neither party has detailed or confirmed such an arrangement at this point in time.
Regardless of whether or not any such buyout goes ahead, this will be good news for Eidos shareholders. Having already enjoyed a boost off the back of the Championship Manager 5 announcement, the insistence of various financial speculators that an acquisition is in the offing ought to push up the share value even further.
Expect an official announcement from Eidos at some point in the next week or so.
Despite the logical implication of an acquisition, Eidos had previously denied all knowledge of any such move, issuing a statement back in May saying “In the light of continued media speculation concerning a possible approach to the company, the board can confirm that it has received no such approach and is not in discussions with any party concerning a possible offer.” However, following a rise in share prices after the announcement of the console version of Championship Manager 5, Eidos has changed it tune.
In an official statement issued to the London Stock Exchange, Eidos has now confirmed that “It is in preliminary discussions with a small number of parties in relation to possible business combinations”. Whilst these ambiguous ‘business combinations’ could pertain to any number of deals, it’s most likely to involve one of the publishers previously rumoured to be working on some form of acquisition.
The interested parties have been suggested as Activision, Ubisoft and Electronic Arts, with EA seeming like the most realistic prospect. The bill for Eidos would likely exceed $325 million, and EA could actually afford that, although neither party has detailed or confirmed such an arrangement at this point in time.
Regardless of whether or not any such buyout goes ahead, this will be good news for Eidos shareholders. Having already enjoyed a boost off the back of the Championship Manager 5 announcement, the insistence of various financial speculators that an acquisition is in the offing ought to push up the share value even further.
Expect an official announcement from Eidos at some point in the next week or so.
Companies:
Eidos
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Comments
Joji 3 Aug 2004 15:29
1/5
Looks like Xmas may have come early for EA.
bbam 3 Aug 2004 16:09
2/5
Joji wrote:
>Looks like Xmas may have come early for EA.
Yea, dont see that Eidos has that much going for it really thought other than the champ manager games because tomb raider has become extreemly poor.
>Looks like Xmas may have come early for EA.
Yea, dont see that Eidos has that much going for it really thought other than the champ manager games because tomb raider has become extreemly poor.
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Mecha Ghandi 3 Aug 2004 16:43
3/5
bbam wrote:
Yea, dont see that Eidos has
>that much going for it really thought other than
>the champ manager games because tomb raider has
>become extreemly poor.
I agree with you on Tomb Raider being a bit rubbish these days, but I think Eidos has got some quality stuff there. Thief Deadly Shadows, Hitman Contracts and Deus Ex Invisible War have been some of my favourite games this year...
Yea, dont see that Eidos has
>that much going for it really thought other than
>the champ manager games because tomb raider has
>become extreemly poor.
I agree with you on Tomb Raider being a bit rubbish these days, but I think Eidos has got some quality stuff there. Thief Deadly Shadows, Hitman Contracts and Deus Ex Invisible War have been some of my favourite games this year...
config 3 Aug 2004 16:51
4/5
I say we start a "Keep Eidos British" campaign.
The BritSoft publishing sector is vanishing before our eyes!
The BritSoft publishing sector is vanishing before our eyes!
Ditto 3 Aug 2004 17:02
5/5
It's too true about British publishers.
The industry is becoming too competitive, and is further oligopolising (sp?). With EA buying RenderWare that puts it in control of the technology many of its competitors use.
Surely there must be a competition comission somewhere that's noticing that EA are swolling the industry?
EA are now in a position where they have influence over publishers and hardware manufacturers - they bargained with Nintendo for lower rates in order to support the DS.
There used to be a time ten years ago when you could go out a buy a game from ten to fifteen major publishers all of which were signing up small developers for original titles. EA's game line-up has always consisted of cash cow franchieses which it has done very little with over the past few years.
To their credit they have manged to produce some real gems over the years (Sims, Future Cop), and I hope that they are able to keep some degree of divergence and innovation in the market they are increasingly dominating.
The industry is becoming too competitive, and is further oligopolising (sp?). With EA buying RenderWare that puts it in control of the technology many of its competitors use.
Surely there must be a competition comission somewhere that's noticing that EA are swolling the industry?
EA are now in a position where they have influence over publishers and hardware manufacturers - they bargained with Nintendo for lower rates in order to support the DS.
There used to be a time ten years ago when you could go out a buy a game from ten to fifteen major publishers all of which were signing up small developers for original titles. EA's game line-up has always consisted of cash cow franchieses which it has done very little with over the past few years.
To their credit they have manged to produce some real gems over the years (Sims, Future Cop), and I hope that they are able to keep some degree of divergence and innovation in the market they are increasingly dominating.