Weakened Eidos in Play? …EA, Ubisoft Said to be Circling

SCi, the parent company of Tomb Raider publisher Eidos, is apparently a takeover target.

UK newspaper the Daily Mail reports that Electronic Arts and Ubisoft are both considering an acquisition of the troubled firm.

Given that SCi is on hard times, EA and Ubi are no doubt enticed by the prospect of picking up Eidos’s popular Tomb Raider and Hitman franchises on the cheap. From the Daily Mail story:

[The merger talk] follows a nightmare year for the firm in which its losses have quadrupled and the share price has slumped 92 per cent… From a peak of £1billion at the height of the dotcom boom it is worth just £50million today… As recently as a year ago the games developer was worth more than £600million.

But a series of self-inflicted wounds coupled with the precipitous slide in the stock market have conspired to drag the shares down from a 12 month peak of 243p to just 18½p yesterday…

The source said the suitors have been waiting to see if SCi would deliver the latest Lara Croft game, which has been delayed, but finally came out this week in time for Christmas.

Via: Edge Online

 

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