A Tree Falling in the Forest

A few weeks ago Eidos ( I can't bring myself to call it SCi) issued a press release indicating it was in takeover discussions with unnamed suitors. Rumor reports pointed to Warner and NBC/Universal. I thought it was a good idea . Then, last week Eidos issued a release indicating the acquisition offer was turned down and the company would need another 55 million pounds to stay alive. Viewing this from the outside, you could either say, Warner and Robert Tchenguiz came in at a bargain price, or, nicely played Eidos. A bit of history. . . Tchenguiz is reported to be the man behind SCi's takeover of Eidos in the first place. In March 2005, Elevation Partners' all cash offer lost out to SCi's cash and stock bid, for the acquisition of Eidos. He purchased a 15 percent stake in the company at the time. The valuation was within spitting distance of the valuation in the deal announced last Friday. Warner, didn't arrive until 18 months later, when it purchased a 10.3...

According to the Daily Mail, Eidos is in discussions with NBC Universal and Warner for an investment or acquisition. UK reporting requirements differ from those in the US and announcements of potential acquisitions of public companies must be made very early. I left Eidos in February of 1999 and have not owned a share in the company since 1999 - I wish I could say I have not owned a share since 2000, but I will save the discussion for another post. Eidos earned the tag "beleaguered" in front of its name. From about 2000 to 2005 when the game market was growing a rapid clip, Eidos market cap fell from over 1 billion dollars to under $100 million. There was a blip in the last couple of years when it looked like SCi was going to turn them around, but after running up as high as 700 million dollars, a string of quarterly losses drove market cap down to where it is today, at a slightly elevated 106 million dollars. The game publishers seem to have turned their backs on th...