Tomb Raider Producer Eidos Confirms Takeover Interest


imageShares in video-game maker Eidos shot up by 42 percent at one point today after the company confirmed it received a takeover approach. A statement on the company’s website says it’s early days and that discussion may not lead to a deal, but it is welcome news for the company after disappointing Christmas US sales of its flagship Tomb Raider game, which led to a cut in its full-year sales forecast. The company admitted it may have to re-negotiate its debt before its next banking covenant test in June.

When it was still called SCi Entertainment, the company reportedly had as many as three bidders interested in taking it over, one being existing shareholder Time Warner (NYSE: TWX), which instead decided to increase its stake from 42.5 million to 52.5 million shares, or 19.92 percent.

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