Eidos Shares Tumble – Games Moved – IP Strength Still in Place
Courting continues apace.
Eidos saw its share price plummet by 30% yesterday with the firm releasing its half year results which showed an operating loss of £29.2 million. This news was compounded by the announcement that both the new Tomb Raider and Hitman updates will slip to outside FY2005.
Eidos is still awaiting a suitable partner or buyer as it looks for a decent stable for its market-leading wholly-owned IP catalogue. False information claiming to confirm a buy-out from NewsCorp last month did nothing to help the view of Eidos in the marketplace, with the originating publication today claiming the leading UK publisher to be ‘on the brink’, describing the firm as a ‘sinking ship’, as ridiculous a claim as the damaging and false story, given Eidos’ history of dogged survival, international infrastructure and ability to shift units. One might be forgiven for thinking the publication in question holds something of a grudge…
Eidos, in its report, did confirm that a "...proposal received on 2 March 2005 of a possible cash offer at a price of 53 pence per share, subject to one principal condition" was received. "However there can be no assurance that this condition will be satisfied and no certainty that an offer will be made nor as to the terms on which any offer might be made. This disclosure has not been made with the consent of the other party,” it continued.
"Given the financial position and standalone prospects for the Company, it is the Board's current intention to recommend this offer to shareholders if it is made," said Eidos chairman John van Kuffeler.
Although credit agreement was reached with long-time partner Royal Bank of Scotland, shares dipped to 35.5p, an all-time low. "If an offer for the Company has not been announced in accordance with Rule 2.5 of the Takeover Code or alternative funding has not been put in place by 25th March 2005, or if any such offer lapses, RBS has the right to require the Company to undertake an orderly disposal of assets, and/or intellectual property, of an amount equal to the facility plus associated fees," Eidos said.
However, there is still wide expectation that Eidos will reach an agreement with a suitor from within the games industry within the coming 30 days. It thought likely that RBS will extend its agreement with Eidos to as long as 90 days if required.
No one at Eidos’ London HQ was available to comment at time of press.
Eidos is still awaiting a suitable partner or buyer as it looks for a decent stable for its market-leading wholly-owned IP catalogue. False information claiming to confirm a buy-out from NewsCorp last month did nothing to help the view of Eidos in the marketplace, with the originating publication today claiming the leading UK publisher to be ‘on the brink’, describing the firm as a ‘sinking ship’, as ridiculous a claim as the damaging and false story, given Eidos’ history of dogged survival, international infrastructure and ability to shift units. One might be forgiven for thinking the publication in question holds something of a grudge…
Eidos, in its report, did confirm that a "...proposal received on 2 March 2005 of a possible cash offer at a price of 53 pence per share, subject to one principal condition" was received. "However there can be no assurance that this condition will be satisfied and no certainty that an offer will be made nor as to the terms on which any offer might be made. This disclosure has not been made with the consent of the other party,” it continued.
"Given the financial position and standalone prospects for the Company, it is the Board's current intention to recommend this offer to shareholders if it is made," said Eidos chairman John van Kuffeler.
Although credit agreement was reached with long-time partner Royal Bank of Scotland, shares dipped to 35.5p, an all-time low. "If an offer for the Company has not been announced in accordance with Rule 2.5 of the Takeover Code or alternative funding has not been put in place by 25th March 2005, or if any such offer lapses, RBS has the right to require the Company to undertake an orderly disposal of assets, and/or intellectual property, of an amount equal to the facility plus associated fees," Eidos said.
However, there is still wide expectation that Eidos will reach an agreement with a suitor from within the games industry within the coming 30 days. It thought likely that RBS will extend its agreement with Eidos to as long as 90 days if required.
No one at Eidos’ London HQ was available to comment at time of press.
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Comments
SPInGSPOnG 11 Mar 2005 17:10
1/5
Losing Eidos would be a sad day. Another step towards a world of EA mediocrity.
Ditto 11 Mar 2005 17:15
2/5
I read about this in the paper this morning.
So, Eidos must get a buyer for it to continue in any form.
Who is the mystery bidder? EA has an opportunity here to get itself one less rival.
So, Eidos must get a buyer for it to continue in any form.
Who is the mystery bidder? EA has an opportunity here to get itself one less rival.
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naeblis78 11 Mar 2005 21:06
3/5
Rod Todd wrote:
Losing Eidos would be a sad day. Another step towards a world of EA mediocrity.
Let me be the first voice of reason in this so called "loss". Eidos is the most leaderless, uncreative game developer in the market today. I've had it up to here with people who are always giving these companies another chance, ( not just eidos... atari....even companies like midway.) If anyone follows the stocks of these companies, then they would know exactly how business savy these numbskulls are. But i guess everyone just wants another Angel of Darkness game.
FrozenBabylon 12 Mar 2005 12:39
4/5
But I would like to see another Legacy of Kain game. And another Project:Snowblind type of game, To say that `Everyone just wants another Angel of Darkness game` is not acurate in the least.
Eidos is a good company, Hands down. They've made their share of bad business decisions, Like every company, But I am one of the many that still believe that they have good games that just need to come out is all. So cut them some slack.
Every company has had some sort of failing stock at one point, Square had to merge with EA for a time to get their stocks back up to the strong point they are now.
Eidos is a good company, Hands down. They've made their share of bad business decisions, Like every company, But I am one of the many that still believe that they have good games that just need to come out is all. So cut them some slack.
Every company has had some sort of failing stock at one point, Square had to merge with EA for a time to get their stocks back up to the strong point they are now.
kid_77 22 Mar 2005 12:49
5/5
No it's not from the Daily Star, but the BBC