EU to buy Eidos?

Elda

Eidos has confirmed that it is " in preliminary discussions with a small number of parties in relation to possible business combinations." According to computerandvideogames.com the industry reckons that Electronic Arts is the front runner to buy Eidos out.

wirelessdigest.typepad.com/games_digest/2004/08/ea_to_buy_eidos.html

 

EA has allready bought Mythic Entertainment which is currently developing WAR. So EA is trying to establish a  #1 position in nextgen MMO's then?

checkthis500

Originally posted by Elda


Eidos has confirmed that it is " in preliminary discussions with a small number of parties in relation to possible business combinations." According to computerandvideogames.com the industry reckons that Electronic Arts is the front runner to buy Eidos out.
wirelessdigest.typepad.com/games_digest/2004/08/ea_to_buy_eidos.html
 
EA has allready bought Mythic Entertainment which is currently developing WAR. So EA is trying to establish a  #1 position in nextgen MMO's then?

That would be hilarious.  I think Microsoft is more likely to buy them than EA though.

AmazingAvery

I kinda have a take on it as this guy here:

This Article Here: YEALD

by Rob J Perri

Rob has an Master degree in International Economics and Management and is a CFA. He covers the Interactive / Video Games industry. more

"There has been a lot of speculation recently about EIDOS being up for sale, and this new development is starting the rumor mill all over again. The video game maker of titles such as Tomb Raider, Commandos , Hitman and Deus Ex, postponed the release of ShellShock: Nam '67 until September to try and avoid releasing the game during the seasonally weak summer months. The company also announced that it will undergo a strategic review to discuss alternatives going forward. Many people have taken this to mean EIDOS is up for sale, but this may also mean EIDOS is looking to aquire.



If EIDOS was to put itself up for sale, we figure the asking price would probably be somewhere between $320-$440 million, based on a 10%-50% premium on its current share price. I know this range is pretty big but I just want to paint a picture of the potential price a company may pay for EIDOS. Some potential buyers include Electronic Arts, Activision, Infogrames, Ubi Soft, Sony and even Microsoft. Let's take a look at these companies individually and see if buying EIDOS is possible.



Electronic Arts - EA is currently the largest gaming manufacturer in the industry, with revenues over $3 billion in the latest fiscal year. EA has a strong balance sheet with cash and marketable securities in excess of $2.4 billion and no debt. Fiscally they can afford to buy EIDOS easily, but an aquisition like this won't add much in terms of revenue growth, EIDOS would only add about 10% to EA's revenues but would probably be accretive to earnings, even if it decided to use stock for an aquisition. While EA may want to get its hands on some of its gaming titles, I would be surprised to see EA buy EIDOS simply because it is doing fine on its own. Odds: 10-1



Activision - With revenues approaching $1 billion, and a solid balance sheet with over $550 million in cash and no debt at the end of its F3Q, Activision could also aquire EIDOS without putting any strain on its balance sheet. EIDOS would also boost ATVI's revenues potentially by 30%, and the titles would mesh well between the two publishers. Also with ATVI's stock price near all-time highs, an aquisition using its shares is possible. Odds: 4-1



Infogrames/Atari - My guess is that Infogrames would like to buy EIDOS, but with net debt approaching $375 million, and a debt/equity ratio of 259%, it would be hard pressed to buy the company. Add to that the fact that ATAR's stock price is near all-time lows and an aquisition using stock seems undoable. Odds: 7-1



UbiSoft - A UbiSoft/ EIDOS merger would generate revenues of approximately $900 million, bringing them up to the levels of some of the larger gaming companies. UbiSoft's net debt is approximately $143 million and its Debt/Equity ratio is around 41%, so while the aquisition would stretch its balance sheet, it wouldn't break it. It could also use stock to make the purchase or a combination if needed. Odds: 4-1



Microsoft or Sony - Microsoft amd Sony could both absorb EIDOS in a heartbeat, it probably woudn't even affect earnings, and they could pay cash or stock without any problems. This may make sense for Microsoft and Sony though, because it would get some popular titles that it could make for exclusive for its platform. Odds of either buying EIDOS 5-1



I would rule TTWO out because it has enough problems on its own. Also, THQi could potentially be a suiter, but we don't feel they have much interest.



Of course, the odds above are IF EIDOS is putting itself up for sale (we put those odds at 50/50). Another possibility is that it may be the aquirer. The company has a strong balance sheet with $104 in cash and no debt, and may be looking to aquire an equally sized gaming publisher such as Midway. Unfortunately though, the recent action in the company's stock price would lead us to believe any aquisition they make would have to be financed with a combination of debt and cash, thus capping the size any aquisition it can make. "

AmazingAvery

Oh and please check the published date on the article above.   Published: 17.06.2004 14:49

Kinda been going on awhile now, nothing new.

Elda

Originally posted by AmazingAvery


Oh and please check the published date on the article above.   Published: 17.06.2004 14:49
Kinda been going on awhile now, nothing new.

hehe, thank you. Hadn't noticed that. lol ^^

[Deleted User]

The user and all related content has been deleted.

tvalentine

Originally posted by Remali


OMG i just found out!!. SOE just bought out AOC for their station pass. They are going to make some changes but nothing drastic dont worry. They will just make sure that the game is more iconic and conan-sy you know for the broad audience. One of the new features is going to be reducing the number of the classes a bit... lets face it 14 is too confusing so now you will be able to choose between "Conan", "Red Sony(a)" and "that mage dude" . Its gonna be awesome i cant wait !!11!.

you forgot that they will be removing any and all nudity in the game, changing the underwear from being very revealing to make it look like they are wearing giant coats. Oh they will also be adding soulbinded, bio-linked armor as well. Also they will be getting rid of the borderlands and getting rid of pvp all together, instead of 20 lvls of pvp it will be 20 lvls of rp.