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Square Enix bids for Eidos

Tomb Raider publisher's board accepts £84.3 million offer, unanimously recommends deal to shareholders.

287 Comments

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.

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Dahaka-UK

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Square-Enix sure know how to waste their money. :|

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BatrozX

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I find it hard to imagine watching a Square-Enix logo on the box cover of a Tomb Raider and/or Hitman game.

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KoruKinshi

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Wonderful...look at my complete lack of enthuiasm. All we need is another conglomo-type game company. Enix should've just let Square die after they screwed up with The Spirits Within. Now the company is becoming a monster. Thank God Tri-Ace listens to no one and just tells Squeenix to publish their games and NOT TOUCH ANYTHING... Come on, Enix! Cut the cancer that's Square already!

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terror_ninja

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...ehh hope this doesn't affect hitman games badly in the future i know how long and painful FF games are

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tidyspidey

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I love Square Enix!!! They just paid for my wedding reception.... had some shares in Eidos expecting this for a long time and I've just sold them now at 31.75p... wish I could make like that on all my shares(!) Thank-you square-enix :)

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PandaBear86

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Does this mean we can play as Lara Croft in FF14? :P

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firehawk998

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Interesting EIDOS a company well known for action/ adventure being bought by Square Enix a company well known for RPGs. Let see how this one goes. I hope they do not cancel or dumb down any hitman games.

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Yyin9564

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now THIS is news... SE buying eidos... that's a mixed bag... i'm a fan of all the eidos shooters (Kane and Lynch ruled idk care people say!)... but when SE tried it a ways back with Dirge of Cerberus it didn't turn out too well... the 2 companies could compliment eachother incredibly well... i mean Eidos has a firm grip on the western market... and SE is infamous for everything they do... the future looks bright folks

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ShadowBass989

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just focus on final fantasy 13 for right now.

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Search_for_Vali

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Aggressive Expansion! Square Enix wants to take over the world of gaming, together with Microsoft. Lol, lol. Seriously. Eidos was a great publisher back in the 90s. They published one of the greatest franchises. I hope I get to play Batman: Arkham Asylum. Because to be honest: I had enough of JRPGs and Final Fantasy.

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SirCroft

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Guzthon: Eidos is a crap, at least for Tomb Raider, the last three games were rushed, unfinished and buggy. I can see only positives in Eidos' take over. I believe Eidos shareholders will accept this deal, for two reasons: - Eidos strongly recomended them to vote in favor of the deal - Eidos is facing big financial problems right now, and it's going to be taken over no matter what, regardless of who's offering, WB, EA, Ubisoft, or Square Enix, this is Eidos' last days, so they better vote for the one who's offering more money, like Squenix (they're paying more that Eidos is worth). I don't think the upcoming TR games will be delayed, and to be honest, if a delay is actually necessary, so be it.

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jamesvader1

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What will become of Batman: Arkham Asylum? Some one tell me!

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Guzthon

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Sir Croft: If the Eidos shareholders do that, it will be complicated. Why? Because: - The upcoming Tomb Raider games will delay more than ever. - Square will control everything without sharing (first Enix, then Taito and now Eidos, who's next Midway?). I don't know if I worng. The good is (if the shareholders gives the green light): - Better graphics. - Better voice actors. - Combining Eidos games with RPG elements and/or upgrade systems. - Expanding Tomb Raider, Legacy of Kain, Hitman games in Japan.

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monkeybananayum

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Geez Square. First Enix, then Tecmo, and now Eidos.

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parrot_of_adun

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Heh... if you thought Deus Ex 3 had little chance of success before, NOW IT'S $#^%&*@ DOOMED!!! Seriously, without Ion Storm it was just a failure. But if SE takes over, it won't have chance in hell.

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awaltzforvenus

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@DsPsofLife: SERIOUSLY. Legacy of Kain as an action RPG for PS3/360/PC would be awesome. Though we'd probably get a remake of the first one or Soul Reaver for DS.

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GranReyUno

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This should turnout well for Eidos if the shareholders accept. I know some would say that SE haven't made anything ground breaking in a while but this is what Eidos need if they want to continue making their quality IPs and SE could benefit with some fresh talent to their team.

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TheKungFool

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Much of the attention of Eidos properties falls under the Tomb Raider and Hitman series, but in terms of quality games, Deus Ex and Thief were much more enjoyable. I'm foaming at the mouth to see what an Eidos/SquarEnix collaboration on a Deus Ex and/or Thief game would result in

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Gammet25

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i wonder what this will hold in the future for square enix

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SirCroft

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@ Orasion_Seiz: They're not that crazy to do such.

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Pete5506

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hmm what will become of this

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Orasion_Seiz

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Tomb Raider rpg anyone?

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DsPsofLife

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Please bring back Legacy of Kain series

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GameFreak523

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Eidos and Enix collide.... This might shine Eidos a little bit more than usually. That's awesome.

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Ky02

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Sounds like Yoichi Wada is playing some power chess.

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GodsPoison

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So what? Squeidos? is that what it shall be known as now? seriously square just hasnt impressed me in years....

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SirCroft

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@ Guzthon - Eidos already accepted the offer, it's up to the shareholders to make the decision. Which is obvious that they will accept, it's more money to them.

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Guzthon

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Don't do this Square Enix. If Eidos refuse the offer then this will be "Strike 2".

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deactivated-5e90a3763ea91

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It actually doesn't seem like that unnatural of a pairing to me, I mean I remember Eidos was involved in the ports of some FF games for PCs, so maybe the two companies have some chemistry. I'm just not sure what Eidos can bring to the table though, but I will say that I think the Tomb Raider games (and Lara Croft herself) have certainly been looking better as of late. But I think that, with SquareEnix's backing, there is a much bigger chance of resurrecting any other IPs Eidos hasn't been able to work on for a while. I also wonder what SE could bring to Eidos other than money, perhaps some skilled development teams with new and refreshing ideas for their IPs. Eidos is certainly fortunate to have such a successful company come knocking at their door at this time.

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sircyrus

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I miss the old days of Squaresoft. Their games definitely changed after their merger with Enix, though this time I don't think the shift will be as drastic since Eidos will likely be an external studio branch.

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Dreski83

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After reading a good portion of the comments I'm happy to see others felt the same way I did when first hearing this... the people who produce Final Fantasy are now the big wigs of Tomb Raider... quite the comical image comes to mind :P But in all honesty, with the way companies are tanking left and right, this is a good move for both groups. Why argue who has the most assets and revenue when you can work together for a short time and disperse into smaller factions after the smoke clears. Makes sense to me.

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travisstaggs

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Square Enix might do some amazing stuff with Deus Ex and Tomb raider.

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dewwy

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The way people are reacting to this reminds me of how people reacted to when EA bought Bioware ("better not f**k it up!"). Why do people think when a buy-out occurs a companies products change entirely? Normally a company will buy out another company because they like their products and market share. The buyer isn't going isn't going to impose their own product style, art direction, etc on the buyee. Sure they may restructure staff and all that, but I don't see how that will all of a sudden translate into an RPG inspired Tomb Raider or anime looking Hitman. If anything changes at an acquired company it's the company culture. Can't say what the company cultures of Eidos and SE are since I don't work there though, but SE seems to be doing much better these days than Eidos...

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lamprey263

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Square Enix has yet to prove they can make a game that'll run on the PS3, that's why they probably want to buy out Eidos, so Eidos can teach them how

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faceman420

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yea def need a new deus ex, as long as its as deep as the first

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royalpierre

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hey, whatever works. as long as a new deus ex comes out, i'm in

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Proman84

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That makes for a weird team but I guess if it keeps Eidos going... (That said I'm really tired of making excuses like this one).

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ivan_osorio

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Well, after trying to make Yuna a Lara Croft clone in FFX-2, this seems like a somewhat logical step...

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peeweeshift

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exactly foxracing. FF12 or FF13 by eidos :D

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NightRain

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Imagine Lara Croft in an RPG... Or FF characters in an adventure game... just saying.

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foxracing1313

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You know what would be amazing. Eidos published Final Fantasy 7, 8 for the PC. If the merge somehow allowed them to do that again, omg :)

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VezTheNoob

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Bad thing: In Tomb Raider you will no longer be able to jump, grab, shimmy, flip or fight in real time. Good thing: It will look amazing. Seriously, I hope they don't turn TR into a total rpg type of thing. Sure character buidling would be cool, and xp for kill to get new gear could have some promise gameplaywise, but has SE ever made a platformer? I just hope that if they do aquire Eidos, they will listen to the fans, and deliver what they want.

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SWT2008

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square enix will control the universe!! Then everyones dreams will come try and cloud and sephiroth will be resurrected and fight another epic battle, but this time it will be real and it will be in Madison Square Garden!!

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mvlbr

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In these times what would SE gain from purchasing Eidos since the majority of it's games have sucked so far for the current gen consoles.

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Fou_Lu

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And so the coffin lid finally slams shut on Legacy of Kain. Goodbye sweet prince, you will be missed.

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SirCroft

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Tomb Raider will finally head to better grounds.

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Valen_Ca

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Well it at least it wasn't EA, anyways here is to hoping they don't screw with Hitman or Deus Ex.

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Everiez

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SE will be one of their biggest shareholder. SE will involved in business decision making but less likely any gay up Eidos except if nomura become SE shareholder representative then it's another story @craftieman05: nice reminder. FF7 and other series for PC(IIRC) translated by Eidos.

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quietguy

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Doesn't sound like their going to gay up Eido's properties. Rather more of an approach to start expanding into Western markets and dabble into new intellectual concepts. Several factors than attributes to this is: -- 1) Sharp rising of the yen, causing trust value of SE's stocks to tumble to an all time low 2) A good proportion of it's revenues still hinges on its arcade division 3) Most of it's current success is riding on the hype build of FFXIII; But after it's release, what then? Rehash another FF type game to depend on, or expand? KH3 maybe in the mix but that won't come in time to add subsidies to SE's coffers during a world-wide economic turmoil. 4) There's going be massive shuffles (a corporate picnic) among other publisher's holds, allowing easy pickings; something that won't probably even present itself for next several periods of years. So in other words... "Circuit City is liquidating and we want cheap, producing goods that will last."

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boogernator

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lol all these bids,take overs, and buying companies....... maybe one day all the game companies, or at least 20% of the game companies will become one

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