Eidos on the Market??? News
Chris Leyton
18/06/2004
Eidos confirm a “strategic review” whilst financial experts predict an acquisition…
Eidos today announced a strategic review of the alternatives available to the publisher, setting of speculation that the UK publisher is on the market again and looking for a take-over.
Citing the importance of its IP, financial strength and the need to invest more heavily in R&D ahead of the next hardware cycle, the board is looking at the potential benefits of scale in reducing the exposure caused by these factors and the increasing reliance on its key franchises.
Speaking to the Financial Times, Stuart Cruickshank, Chief Financial Officer, would not talk about a sale of the company but did confirm that the group was âconsideringâ all options, and claimed that they needed to secure more key titles.
Commenting about the recent deals that have seen the likes of Timesplitters switch from Eidos to EA, Tejinder Randhawa, Evolution Beeson Gregory, the companyâs broker confirmed that a major threat is that rivals could have the âmuscle to take the titles and increase their scale and marketing spendâ.
Eidos has so far refused to comment about the situation and moved to quash speculation surrounding a take-over last month.