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Shareholders Demand Resignation Of SCi Chief Executive

| 14 Jan 2008 16:06
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The drama at Eidos parent SCi is picking up steam, as shareholders are demanding the resignation of CEO Jane Cavanagh following last week's announcement that talks regarding a takeover of the company had fallen through.

A report by the Times Online says that SCi will need to borrow nearly $60 million just to maintain operations until the end of the year, with one analyst saying, "It seems likely the company will run out of cash by May or June. Since it is now delaying the release of its new games, it will need this extra cash just to keep the lights on." Along with the failure of takeover talks, the company also announced the delay of Tomb Raider: Underworld and three other titles into the fourth quarter of 2008, which drove its share price down to less than half its previous day value.

Prior to that single-day crash, the company's share value had been steadily declining, shedding 65 percent of its value between July and December 2007, and sources are now claiming that despite reports of interest from Ubisoft and Time Warner, SCi never received a single firm offer. The company's stock, at one point valued at over $10, is now trading at roughly $1.30 per share.

Along with Cavanagh, whose position has been described as "untenable" by one major investor, shareholders are also demanding the resignation of her husband, Commercial Director Bill Ennis, and Tim Ryan, the company chairman. Sources in the company say that Director of Finance Phil Rogers, who joined with SCi in February 2007, has been pegged as temporary CEO until a permanent replacement can be found.

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