Eidos Confirms New Acquisition Talks

UK publisher Eidos Interactive has confirmed that the company is again in talks with an external partner regarding a complete buyout of the business. "The board can announce that it has received a preliminary approach which may or may not lead to an offer being made for the company," said the company in a brief statement. "Eidos emphasizes that discussions are at a very early stage and that there can be no assurance that an offer will be forthcoming." No clue was given as to who the potential suitor might be. Warner Bros., however, owns a 20 percent share of the company, and has twice amended a "standstill" agreement that lets it purchase more shares of Eidos, most recently in December. Other companies linked with a possible Eidos acquisition in the past have included Electronic Arts, Ubisoft and Square Enix. Last year, acquisition speculation continually followed Eidos even after the company confirmed that talks had ended in April. The confirmation of new talks has had a positive effect on Eidos’ share value, which rose by as much as 40 percent in early morning trading in London. The recovery was well timed, following the company's revelation of disappointing Tomb Raider: Underworld sales and 30 staffers let go from developer Crystal Dynamics.