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Square Enix bids for Eidos

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

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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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ninja-legend

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[This message was deleted at the request of the original poster]

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Obamamaniac

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It doesn't fit. I just can't imagine Hitman with spiky hair. SE, go buy another rpg maker or something. Oh, and while you're at it, RELEASE FF13 ALREADY!!!!!!!

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ff7cloudking

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Thank you Square, it would suck to lose Eidos.

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Zloth2

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!! So in Deus Ex we will be buying our cyborg implants from a moogle?

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Bigcol1611

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Well done square-enix!!! Can imagine lara croft turning up in FFXIII2, and then all cosplay fans dressing up as her!!

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NightmareCV

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neither sega or capcom will buy out ubisoft, both companies posted losses while ubisoft did very well in 2008, if anything ubisoft will be making purchases.

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rikhan_z

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Deus Ex 3 under SquareEnix label... sounds interesting

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LindBergh2007

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This is the first of many Japanese publishers buying out thier western competitors. It's part of the software market crash and it wouldn't surprise me if Sega and Capcom are the next ones buying out either THQ or Ubisoft. Now here's to the hope that NamcoBandai buys Midway.

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ropumar

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Eidos worth more than $120 million. SE is smart buying when share stocks are low and every share holder is worried wanting money. SE will get franchises, dev teams and the whole eidos structure for a bargain.

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Squeets

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NOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!! AGENT 47 WILL BECOME A 9 FOOT TALL GIRLISH BOY NAMED KENJOMEIANAONAIN AND WILL HAVE 20 FEET OF HAIR!!!!!!!!! No Square Enix! I forbid you!

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a7xfan7

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Interesting... I have a lot of respect for Square Enix, along with their previous Squaresoft crew. Not that buying out Eidos would be a bad thing, but I can't imagine what they would do differently with the games. Games like "Hitman" are so well made for their genre, I don't really see what would change. Aside from the lacking of clothing and the transsexual hair styles Square brings to most of their games. :P

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ise1880

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lol, i could never imagine the upcomming batman game with a Square-enix logo on the cover, lol you'd have to make a double take loll

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eyerok

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next thing we know raziel will be in the next FF game lol

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aBathingApe_

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Interesting, but I don't know where Squenix is going to go with this.

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Icehearted

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Oh good grief, I don't want to imagine the Tomb Raider concoctions they'd end up creating. Maybe Lara will become Larry, the extremely pretty yet angst driven teen tomb raider. He'll use an absurdly oversized gunsword that fires swords of ridiculous sizes. How about 47? Can't forget that he'll probably get spiky hair and brightly colored costumes. No need for disguises, 47, you've got the JOB system now! Square Enix can't even get their own action franchises right, so if they even attempt to dabble in the goings on of the devs from Eidos this could spell all kinds of trouble for their flagship titles. Want to know what Tomb Raider would look like if Lara were a blue eyes, blonde haired Asian? If Square Enix has anything to say about it, you'll probably find out soon enough. Remember boys and girls, this is a company that thought we were too dumb for their RPGs.

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somberfox

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In before Agent 47 and Lara Croft make an appearance in Kingdom Hearts III.

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puppiemaster

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I'm sure the SE board log into Gamespot every day and read the comments on here. LOL, Owning a few games does not make any of us an expert on how to run a business.

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LegaiaFanatic17

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I'm wondering if this will make a new Legend Of Legaia game possible? If so, I'm fine with Square holding them.

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puppiemaster

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I'm sure the SE board log into Gamespot every day and read the comments on here. They must be having second thoughts after reading all the expert comments on here.

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DJSAV_101

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They better not make Hitman 5 an RPG. :P

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muppen

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How about a new Tomb Raider game with the Crystal Engine...that would be something

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Rockmonix

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"Square Enix Eidos"?

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magusat999

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I wonder how they expect to make money when they aren't releasing games???

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thegamemonkey

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I'm interested in where this could go.

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magusat999

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Actually I think SE could make those games better than Eidos - i just worry that there won't be PC releases, and that they will be offering them stateside only after Japanese versions have their run. One other thing is who will do the art and story? Square should do the artwork, Enix should do the storytelling and mechanics (have you played Square action games... ugh). And they definitely should utilize the stateside offices about designing the games.

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Windblade91

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i sense that square's exec's will cancel the deal, not a smart move eidos doesnt really offer anything great

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SalarianChemist

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I've already heard rumors saying that the employees of Eidos are going to leave the company the day after this sale becomes "official." The reason for this is because Square Enix is still living an old-school mentality where they release Final Fantasy 13 only for the PS3 in Japan--the home country of Square Enix. Final Fantasy 13 is being released for Xbox 360 in every part of the world except Japan--a market where the PS3 is doing much worse than expected, while the Xbox 360 is doing much better than expected. Xbox 360 hardware sales would obviously benefit a lot in Japan if Final Fantasy 13 were released in Japan. The employees of Eidos apparently don't like this, which means most of them don't want to be owned by Square Enix. This means Square Enix will essentially be spending a whopping $120 million to simply buy the IP franchises of Tomb Raider, Just Cause, and the others mentioned in this article. $120 million really is too much money to spend just buying IP stuff...I doubt Tomb Raider would be a successful JRPG...and Square Enix probably doesn't have the employees to do a successful Tomb Raider game on their own.

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Dark_sageX

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Just as long as this doesn't cause ff13 to get delayed again am cool.

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higheclipse

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a tomb raider with reality-defying hair,swords, magic, etc.?!?...who knows??

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zmbi_gmr

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@nerevarine have you played underworld? it's actually pretty cool except for slightly wonky camera and poor combat. puzzles are pretty good and graphics are pretty damn sweet. it deserves at least a 7.5 out of 10. that's not horrible for a series that has seen real crap titles and some very impressive titles.

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Nerevarine-

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why bother ... the tomb raider series hasnt produced a decent game since 3, and the hitman series is quite possibly the worst perceived decent series of all time.

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magusat999

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I didn't know square was interested in making PC games... or does this mean no more Eidos PC releases?

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FlashCharge

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Another man's woos become another man's trouble. Good luck Square Enix.

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Senor_Kami

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Fear Effect would be a nice comeback. HD anime looks really great when it designed that way from the ground up. I imagine if they kept with background that were basically video files, this could be one of the best looking games on consoles. It'd be better if the Tecmo deal had gone through though. Square's story telling mixed with the combat of Dead or Alive or Ninja Gaiden is a super epic win and is would push JRPGs back to the forefront of the industry.

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Mystoksor

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as long as we get hitman 5, I'll be happy

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Heffe2020

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I want to see thief with an RPG element to it (leveling up armor, weapons, etc.).

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spartan_lord

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is one company realy going to effect the other that much in terms of the games being released? just because square own Eidos, i don't think it will affect the games greatly

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Briantb_2008

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I like square enix I really don't mind them taking over companies when u make great games.

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lamprey263

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@jasonharris48 - "Hmmmm Edios should breing back the FEar Effect series" I totally agree, those were very cool games in their time

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craftieman05

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well, didn't they translate FF7?

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lamprey263

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Microsoft has a good opportunity to make Eidos titles exclusive to their console, they could easily outbid them at that price

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bubnux

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Hmmmm....

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jasonharris48

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Hmmmm Edios should breing back the FEar Effect series

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pakhair

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[This message was deleted at the request of the original poster]

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pakhair

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This is one weird deal

As many of you know Eidos & Square Enix games are almost parallel. If one is Sky other is Land.

Let's See How time unfolds the consequeces of this Deal

By the way I am pretty happpy that the studio isn't going to bankrupt Bcoz I love Hitman & Tomb Raider Series (Which is Improving)

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clqtte

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How about Tomb Raider:Final Fantasy?.....Excited Yet?

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chechak7

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wowowowo

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coldness6

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Wow, Eidos? Hmm, it seems to me that Squeenix is trying to get whatever it can!

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