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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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Avatar image for DontEatCream
DontEatCream

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Wow, did the Square Enix prez spew hyperbole or what? Cause man, when when I think of Kane & Lynch, I think of one of "the world's leading videogame properties". Ehh, it's still a good deal, I guess.

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toyota22

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wow i would love this deal:)

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ivan_the_one

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I hope they make a final fantasy blood money where cloud goes around and kills people for cash or materia...

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MacBeth96

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It's a good move for SE, that will give them a good foothold on the american and european markets. We'll see in the next 2 years if it pays off.

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CasinoOutlaw247

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Square-Enix becoming the 2nd EA?! not a chance.... Besides BOTH need a boost of some sort to get going again. It could be an interesting pairing but, we won't know until we start seeing some of the games that come out. I also hope Tecmo does well too.

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majestix1988

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Next Tomb Raider..will be using crystal tools..for graphics that would be cool on next game...more drooling...and more gaming and more lighty to my eyes

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jmartin1016

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I think square enix financial advisors need to get their heads checked. Eidos is by no means a solid investment. Also Square is wading troubled waters at the moment as well. I can imagine how this could be a good thing for either company.

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ecko1o1

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WHAT!?!?!?!

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Iffy350

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papavicio:"CHRONO TRIGGER,CHRONO CROSS, ALL FINAL FANTASYS (by the way we are expecting the 13 th of them not counting the out of the saga final fantasy, XENOGEARS,PARASITE EVE,VAGRANT STORY, and didnt mention any ENIX TITLE" Its a good list but none of those non Final Fantasy titles have been released in the past 5 years! Knock off the caps fanboy! FYI, I don't count the chrono ds game! :D I am also look foward to watching a tomb raider game and not actually playing it! :roll:

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Filaki

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METHOD115 It's not in SE's best interest to meddle with what Eidos does best, i.e. story-driven western-oriented games. Give them a little credit, I'm sure they realize the differences between the Japanese and Western markets and will make sure to stay out of Eidos' way, at least when it comes to creative input.

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hahamanin

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damn i just hope they dont ruin Hitman n let it stay the way it is

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papavicio

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of course by looking at your profile it seems like most todays youth you like only shooting and cover games i understand now

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Skullcandy

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Only 83 million? Wow they must not have been doing well at all. I guess Square Enix just laid off a bunch of people so they could put the money into the purchase of Eidos. Nice, this is why I'm an anarchist. Big business and corporate greed will be the end of us all.

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papavicio

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and honestly "Mandalore_15" ONLY ONE GOOD GAME , are u serious how old are you , you are actually comparing SQUARE to EIDOs , saying the second is better and square SQUARE has only made one goood game , you must be 15 years old , CHRONO TRIGGER,CHRONO CROSS, ALL FINAL FANTASYS (by the way we are expecting the 13 th of them not counting the out of the saga final fantasy, XENOGEARS,PARASITE EVE,VAGRANT STORY, and didnt mention any ENIX TITLE

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moose3469

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WTF is SE getting all this money from, i thought they werent doin too hot

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method115

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@ Filaki what makes you think they wont? They just bought the company I'm sure there going to have some sort of input. I'm sure no one expects them to run the show, but to think they wont have any creative involvement in the company they just bought is ridiculous.

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CamiKitten

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I think this could be an awesome move for Eidos. Having Squenix take care of them could mean some incredible things for franchises that have fallen down over the years. Just because Final Fantasy comes from Squenix doesn't mean what they buy will fall in suit. The entire FF franchise was not tailored to western tastes in the first place so stop your complaining. But the sales for them is continuously popular. So what does that tell you? Duh, that their doing a good job. And they could add some of that similar glory to Tomb Raider and Hitman and make them epic. And for those of you with half a brain b/c you lost it all playing shooters all your life: You can shoot in those games too, but awwwwwwww.... You'll have to think too. That's too bad for you. LoL.

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Filaki

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I dont understand why anyone thinks SE will start having creative input in what Eidos does. IMHO, SE bought Eidos in order to crack the western market. The last thing they want to do is change the style of games Eidos produces.

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papavicio

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

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papavicio

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i do want to see a deus ex turning in to a final fantasy , at least getting lots of rpg elements and good narrative lots of cgs

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vortex_gw

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If that means better Tomb Raider games and Deux Ex I'm all for it.

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Paul2004

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With the current state of things ( Company's going bust, jobs going ect ) then they are gonna trying to save Eidos from the dustbin of history . SE has made quite alot of good games so we can only wait to see what happens next . Still, i hope they arent taking too big a risk here . Buying a company will always have its risks and if they buy too much then they could face a similar situation that Eidos is facing .

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Brendan-Potshot

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I agree with "mattcake", Square-Enix would do their new licences justice. Though at the same time, I don't want to see Deux Ex becoming FF.

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Extra_Life

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Tomb Raider Tactics coming to a store near you soon! In all seriousness though, this buyout should be good for everyone involved, and not some predatory snapping up we've seen from other companies...

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afrosud12

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i'd take a bad company over a FF any day of the week, except for the weekends, those are dedicated to halo

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mattcake

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Strange to see people worry about Square Enix and compare them to EA. Whether you like the FF games or not (they're made to appeal to the Japanese market, not Western) the amount of care, attention and detail they put into their games, along with production values, is extremely high. They also don't rush games out of the door like EA, quite the opposite :) Can anyone say they wouldn't like to see a Lara game that's actually had some time spent on it? :P

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Oloryn

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Well, the way I see it, the outcome was either this, or Eidos keeps struggling and would proceed to do what they claimed, drop everything to focus on Tomb Raider. Square Enix might not deal with the same types of genres, but they do have funding, and maybe they'll stay enough out of the development to let the games keep their feel...and at least we'll have the games. At least thats what I'd hope. Personally, seeing as Square Enix usually focuses on story, I guess that deep down I'm just hoping they bring the Legacy of Kain series above water again, as that series always had one of the more remarkable stories in gaming and has been ignored for too too long. Guess all we can do is wait and see.

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Avenger1324

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While those quoted IP were great franchises, how can you proclaim them as still being great when they have been sat gathering dust for many years? Deus Ex 1 is one of the greatest games of all time. Deus Ex 2 perhaps one of the most disappointing sequels of all time. Thief was a brilliant franchise, but stopped with Deadly Shadows back in 2004, and not so much as a sequel announced. 2 good studios have collapsed after making Thief games (Looking Glass and Ion Storm). Hitman last saw action with Blood Money, but Io seem to have been put onto other projects, most recently announced Mini Ninjas - while Hitman 5 remains little more than a rumour. And err... Kane and Lynch is a "world leading videogame property"? :D :D :D Most people would disagree

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MetalGuyver

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Wow, why so much hate? We knew Square Enix was trying to expand its market into the Western World, so it needed a staging point. Also, as these points in time, some companies might gobble each other up for to assimalite their finer qualities. For me, personally, as long as they continue to make great Hitman games, or even finally make an awesome "Freedom Fighters" sequel...I would be happy.

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Kleeyook

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WTF!!! SquareEnix will become the second EA. ANd worse than EA. :(

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Mandalore_15

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Greeeeaaaaat. So all these franchises that I've loved for years are gonna turn to **** now. Great ****ing move Eidos, selling out to a company that's barely released a good game in its entire history. Final Fantasy can go rot.

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Palantas

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Everyone in Deus Ex 3 will have spikey hair now.

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The_AI

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Square Enix. Only one possible response to this. WTF?!

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demiath_egge

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So I take it the next Tomb Raider game is going to be a turn-based RPG in which Lara undergoes a radical transformation into a spoiled teenage brat with spiky bleached hair and an over-sized sword? ;)

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dethtrain

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interesting. wonder if these will change the style of some of the games.

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zalanth

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Oh wow. I didn't see this coming. Square Enix was one of the last people I'd have expected to put in a bid for them.

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jasopan

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Whoa this is pretty big news, how come i haven't heard this before?

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