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Square Takeover of Eidos Gets Approval

| 27 Mar 2009 15:18
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Square Enix's bid to acquire Eidos has been given the green light by shareholders, who voted overwhelmingly in favor of the deal.

Square Enix revealed in February that it had made a $120 million bid for the struggling publisher, news that sent Eidos' share price soaring to more than double its pre-announcement value. The deal had the support of Eidos CEO Phil Rogers as well as outside observers and was widely expected to be approved by shareholders. The company has faced growing losses since 2007 and suffered another blow recently when its most recent flagship release, Tomb Raider: Underworld, failed to meet sales targets, which drove the Eidos share price down by almost 30 percent.

85 percent of represented shares voted in favor of the takeover, the company revealed in a statement, and the special resolution required to move the deal forward was also approved at the subsequent Extraordinary General Meeting. Square Enix will assume control of the company when Eidos' shares are delisted, which is scheduled to take place on April 22.

There's been no indication yet from Square about its plans for Eidos' best-known franchises, such as Tomb Raider and Hitman. When the bid was made public, Wedbush Morgan analyst Michael Pachter said one of the major motivations for Square was the ready access to several well-established "Western-style" franchises offered by Eidos. But none of those franchises have been world-beaters in recent years and how Square plans to reverse that trend is currently an open question.

Source: GamesIndustry

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