Tomb Raider publisher's board accepts £84.3 million offer, unanimously recommends deal to shareholders.
The identity of the company with which Eidos Interactive--formerly known as SCi Entertainment--entered takeover talks in January has been revealed. Today, the board of the beleaguered publisher revealed that it has come to an agreement with none other than Japanese role-playing game giant Square Enix.
Talking about the deal, Square Enix president Yoichi Wada said: "Eidos' products are highly complementary to our business and will accelerate our aggressive expansion into Western markets." In the announcement of the offer, the Tomb Raider, Deus Ex, Hitman, Thief, Championship Manager, and Just Cause franchises were called out as being among "the world's leading video game properties."
The Japanese publisher's offer of £84.3 million ($120 million) is being unanimously recommended to Eidos shareholders by the firm's board. That total represents an offer of 32 pence ($0.46) per share, which is more than triple the company's value when the approach was made, and double its share price when the London Stock Exchange closed yesterday. Since the announcement this morning, Eidos shares have climbed further, peaking at 31.25p ($0.45)--a 123 percent rise from the opening bell.
The announcement follows the news in January, shortly before Eidos announced that it had received and was considering a takeover approach, that sales of Tomb Raider Underworld had failed to meet expectations. Last year, the company shed 20 percent of its workforce, and its CEO admitted that the company needed "immediate change" to deliver appropriate returns to its investors.
Square Enix has been looking for acquisition targets to expand its global reach for some time, with Wada saying that his firm was "talking with quite a few companies in and outside of Japan," with a view to acquisitions. The move follows the Japanese publishing house's unsuccessful $200m move for Tecmo, and comes as its own share price is in the doldrums, nearing a six-year low. The company also released its delayed revised financial projections for the current financial year, downgrading its expected net income by 62.5 percent, blaming conditions in the arcade and offline gaming segments of its business.
MegandDia128, you are an idiot. Have you ever HEARD of Deus Ex? A far better RPG than most of the **** Square churns out. I like Square, but they make bad games along with the good ones. As for Eidos not being able to make RPG's? Don't talk about things you unless you actually KNOW something about the subject.
Oh please no! I smell 'Tomb raider Gundam', 'Hitman Star Hybrid Laser Killer' and other mind numbing Japanese influenced coin collecting, FMV filled Turn based garbage!
I dont care what happens as long as Deus Ex 3 comes out soon and live up to the serries. and MegandDia128 Hitman was a good game if you like that game type. also I have no idea what games Square Enix has made...never heard of 'em.
The games that Eidos make will stain Square Enix's good name. Hitman and games like that just don't fit Square at all. Square Is RPG, not shooter, Not Action/ Adventure. Will This affect Square and eventually lead them into making crappy games like Hitman. sigh this is said really sad
Seriously I am a Square Enix fan (sorry Eidos Fans) Eidos can kiss my butt. so does that mean the Square will be responsible for making games like Kane & Lynch or Hitman both of those games suck bad. they are so Anti-RPG. I don't really want to see Square make any other games other than RPG cause that is the only kind of game that fits them.
When I first heard about this I thought they Square and Eidos had already merged but that was as RedMMIV mentioned only a partnership with the PCs versions of FFVII & VIII. I don't see any problem of the merger at the moment as they have worked together in the past to bring games to more than just Playstation in the past.
Why are some people saying "YAY TOMB RAIDER RPG!!" Thats a freaking abomination.... would completely take out the 3rd person view action part of the series
It's cool that Square Enix is doing this but I liked it better when they just made Japanese JRPGs cause that's what they were brilliant at.
Looking forward to this move. I wish the two titans would blend together into one monolithic games colossus. Imagine Lara Croft RPG or even Hitman RPG or, better, Final Fantasy mixed with manually oriented combat systems. Hopefully this is just business, and no games or franchises o either side will face extinction.
New Thief game? I sure hope so... I have a fever and the only only prescription is a steam punk sneaker.
i don't get this. squeenix will now be the saviour of a troubled eidos? but squeenix can't even save itself? it's going be like the blind leading the blind. i see fail written all over this.
I want JustCause2 NOW god damn it! Is there any news on this game anywhere? i cant find anything about it.
Kinda makes sense im sure Square had partnerships with Eidos years ago even publishing FF7 for the PC. Might possibly mean they would have teams here to localise games possiby meaning it would be faster.:P thats more a pipedream though.
i like square. kinda sick of eidos tho. mind you deus ex and thief strike a chord with me.... but thats about it
I see lot things saying they really don't want western expansion and I agree because I personally believe that they are doing this to bail out an old friend of squaresoft cause if you remember they worked together way back when.
Legacy of Kain would be awsom Tomb Raider Underworld was amazing and the best so far.. cant wait for the DLC Also cant wait fot Hitman It would be good if they release the old Tomb Raiders to the PSN and the PSP stores. alot of fans would love that. i would love to play Tomb Raider 3 on my PSP or my PS3
I don't see this as a bad move for either company SE will apppeal more to the West and Eidos will continue making there games.
This wont effect both side's gaming, No tomb raider rpgs, no black mage laras. It is simply, Japanese companies expanding their business to the west
Hopefully Eidos won't screw up like Tecmo did. Square Enix was really offering them a sweet deal. They'll keep a lot of their autonomy and their own name under Square Enix, like Taito has done. Tecmo lost out on one of the best buyout deals out there. If you're going to be bought out, might as well be bought out by a company that's going to let you remain semi-independent as one that's going to gut you the way EA historically did.
maybe now they finally make a FINAL FANTASY 7 REMAKE! =) lalala with lara croft as secret character =x
oh boy the next hit man will have baddies like turtles with 9999 hp and mana attacks...and agent 47 will be a twelve year old meg ryan look alike...this is not good news on any level
Hmmmmm.... Square are good, but a bt too "Eastern". Maybe this will help them expand their fame in the West?
Kudos to "swamptick", the series of Legacy of Kain and Soul Reaver were some of the best games I've played. If done right, these games could God of War, Ninja Gaiden, and Prince of Persia a "run for their money".
I think everyone is confused about whats going down here. Eidos will still be Eidos. It's just that now they have the financial backing of square enix. Now, Square Enix can tell them what to do, but thats probably for the best. Eidos has all but destroyed their franchise portfolio, with half finished games and controversy.
wow didn't know Edios was doing that bad hope we'll still see hitman...if so(i hope) then it will be the first game with a SE logo on it i'll be buying
Wow !! this is big news !! it was obvious something was wrong with Eidos, but i didn't think they were that much broke to sell everything .. My Reaction : well , to say the truth I'm having mixed emotions inside right now > HAPPY that there is a glimpse of hope for a better Change now that TR & hitman (my two Eidos favs ) are handed to a gigantic developer . >SAD to leave all the good memories with the eidos logo on these games ! > AFRAID that they might change the core taste and style of TR & hitman to turn them into more of a japanese style ,which would kill the games for me,rather than just taking these games into the next level .. Let's hope for the best ...
Memo to Square Enix with the Eidos properties: Stop making the same damn game over and over. Bring back Raziel and Kain.
Unexpected move for most, but not too surprising. It's a pretty good move, and hopefully it won't interfere too much with the IP's Square-Enix picked up through the deal.
For those talking about the incompatibility with Square Enix and Eidos... actually Eidos published Final Fantasy VII and VIII on the PC (and maybe others I don't know of). I love Square Enix, the more games with their name on, the better.
Nope... would suck. I love Eidos and the fact that they are multi-platform... S-E is focusing each of their games on one system alone (except FFXIII... and we saw what happens when they try multi plat with The Last Remnant... how much months worth of delay??)?
meister 209... At over double the share price of the time, Square Enix's offer was not a cheap dollar. Eidos have been flogging the outdated Tomb Raider series until the horse died underneath them, the same ignorant attitude espoused by many industries born in the boom-time... they deserve to be bought out and ripped up. However, Yoichi Wada is an idiot if he thinks that not releasing a westernised version of FFiiiv until summer 2010 is an example of the "aggressive expansion" his company espouses. I really hope FFIIIV flops next year and drags SE and Eidos down with it... oh and add in Rockstar ;P
and people wonder why the economy is so messed up with the us selling out the gaming industry overseas were suckers for a cheap doller only to crap on ourselves and thus downgrade the consumers with poor games that have a low rating or score.
@Lyca: If that happens it simply creates a void for new talent to make a breakthrough game and start the next Lionshead studio or its nearest equivalent. Remember, buzzards tend to feed on carrion... that says a lot about the UK gaming industry right now, but not that it is dead forever. Wherever educated, creative people crop up, you'll get games... look at crytek!! How about STALKER?
To be blunt, while I think that Square-Enix already has plenty on their plate, I can think of MUCH worse options for Eidos and their IPs. Eidos, despite some flashes of brilliance, has been a mediocre Tomb Raider factory for a while now, and a real lack of polish. If there is one thing that SE knows how to do, it's add polish to a game. I could see an SE version of Deus Ex or Thief being pretty good... and they HAVE to be better than games like Underworld or Kane & Lynch...
Are the buzzards coming in to pick us clean? Only a week ago German Game Publisher Crytek bought U.K. Developer Free Radical now Square Enix and Edios... I know the U.K. economy suxs now but what will this mean for U.K. games industry? Perhaps mergers and selloffs will be our future and we wont have our own companies breeding home grown talent?