Square-Enix, Warner Bros. In Bidding Battle For Eidos?
The past year hasn't been a good one for Eidos, as they suffered through low software shares and management upheaval, which has resulted in losses quadrupling and its share price losing 90% of its value. In other words, they're in trouble, which is why there are several companies out there that are making tender bids for the struggling publisher.
According to MCVUK, national press reports have pegged EA and Ubisoft as the front-runners, but other industry insiders are picking Warner Bros. as the buyer to watch. Now, it seems Square-Enix has tossed its hat into the ring, which means the battle for Eidos has now officially gone worldwide. Warner seems to be in the driver's seat for this one, though, as they already own 20% of Eidos, and they would only have to spend another $30 million to gain controlling interest. $80 million would give them total control. Square-Enix president Yoichi Wada has reportedly visited Denmark's IO Studio (Eidos developer), and is now ready to go to the UK to make Square's presence known to Eidos. As we all know, Square-Enix is on a Western kick lately, and considering Eidos' publishing library, this type of acquisition would make sense. One source has apparently said that while he still believes Warner will win, it's "interesting" that Square-Enix has expressed interest. At this point, it almost seems that S-E wants anything that has a Western focus.
Anyway, we'll let you know who crosses the finish line first, but however it ends, it's probably not what Eidos was hoping for in terms of company growth and success. Oh well.
12/4/2008 Ben Dutka