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Warner Bros. Backs Square's Eidos Bid

| 16 Feb 2009 14:50
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Warner Bros., a giant stakeholder in game company Eidos, is supporting Square Enix's acquisition offer for the British publisher.

The movie studio, media conglomerate and 20 percent shareholder of Eidos "irrevocably" announced its support for Square Enix's takeover by promising its votes when the shareholders elect whether to accept an acquisition offer.

Square Enix's purchase proposal last week for $120 million doubled Eidos's share price in England. The Japanese game giant intelligently placed public pressure on Warner Bros. to accept its bid by publicly reminding the firm that it would have to accept the acquisition, make a counter-offer or face years of shareholder lawsuits for not increasing their value given the chance.

Warner will be combining its 52.5 million-plus shares with Square and its shareholders for a 36 percent interest in Eidos, a large jump closer to reaching the majority votes necessary to pass the purchase.

With no competitive offers in sight and shareholders almost assuredly going to accept the lucrative deal, Eidos will soon be Japan-ified and Square will continue to globalize and consolidate the industry heavyweights into fewer firms.

Source: MCV, GamesIndustry

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