Lara Croft for sale?

Several bidders but no bids

The Eidos financial disaster cannot be solved, not even by Lara Croft.

Eidos sunk more and more into financial losses, as the company deficit was 29 million sterling pounds as compared to the same time last year, when the profit was around 6 million.

The Eidos releases during the last six months were ShellShock, Nam 67, Backyard Wrestling 2, There goes the Neighborhood, Crash & Burn and Get On Da Mic, but none of them managed to bring the company back to the floating line. Not even the announcement for a new version of Larei Crofts adventures for the Xbox 2 and PSP could boost their shares.

The financial crisis is so severe that Eidos agreed to accept takeover bids, much more convenient than stock sales, in which case the company value would decrease to 75 million pounds, instead of last years 260 million market value. The releases previously announced for this summer (Just Cause (PS2, Xbox), 25 to Life (PS2, Xbox), Hitman: Blood Money (PS2, Xbox) and Tomb Raider (PS2)) were postponed until 2006 (June 30) the latest.

Eidos otherwise managed to get a short-term loan from the Bank of Scotland, due on March 25. Given the difficult situation faced by Eidos, the news published during the weekend claiming that SCi Entertainment is willing to buy has proven a true sensation; Eidos had implied that they are analyzing an offer from an undisclosed potential buyer.

This made room for speculations, some whispering the names of Ubisoft, Elevation Partners LP and Francisco Partners LP, the latest being two venture capitals in the USA.

Although many thought SCi was a sure buyer, when contacted by Computer Games Magazine the company representatives commented they had no information related to such a bid.

This is why buyers are still wanted for Lara Croft.

Source: softpedia.com, 22nd of March 2005

Bono bids $135 million for Lara Croft

Others interested

Soon after Eidos announced the pursuit of possible buyers, bids started flowing. The news that Bono, U2 vocal, is one of the six CEO-s in US company Elevation Partners made sensation, especially since the company bid $135 million in cash for buying Eidos.

Many rushed to announce that Lara Croft will surely become possession of world-famous Irish singer. Bono, associated in Elevation Partners with a former Electronic Arts CEO, sang in 2001 for the Tomb Raider soundtrack, his hit being named Elevation.

Some are still decided to prevent the Bono - Lara Croft marriage. SCi Entertainment, a studio renowned for the controversial Carmaggedon series, initially denied the intent o interfering with the Eidos negotiations; later, after the news about the Bono offer spread around, SCi decided to bid a higher $144 million.

While Elevation Partners brings cash, SCi suggests a stock exchange, offering one SCi share for every six Eidos shares.

Just when the sale to Bono seemed one signature away, the fighting for Eidos starts resembling a tactical war, especially since SCi rushed to announce that they managed to convince about 15% of Eidos shareholders to accept the trade.

The sole benefit for Eidos in this controversy is that their shares boosted 27%, while the game developer community already speculates that new bids might also come from other players like Microsoft or Ubisoft, possibly interested in the bid-race.

Eidos made no official statements, while SCi kept on declaring that the investments in Eidos games will continue, and even attempted to suggest that there is more likely room for an association instead of a takeover.

The Eidos saga proves how much a game success accounts for when released by a certain studio. Despite of the success of franchises like Tomb Raider, Thief or Hitman, the release of six unsuccessful games during the past half-year was troublesome enough putting Eidos on sale.

Source: softpedia.com, 23rd of March 2005