Eidos Sold To Elevation Partners
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According to GameSpot, UK video game publisher Eidos has been acquired by Elevation Partners. The rumored $135 million purchase comes on the heels of a potential SCi Entertainment buyout. Elevation Partners is a venture capital firm that includes U2 lead singer Bono. The firm has been rumored for months as being interested in the Tomb Raider publisher. No official word on the buyout has been published as of yet.
Here’s a preview of the GameSpot article:
According to Reuters, Elevation Partners made Eidos an offer it couldn’t refuse: 71 million pounds ($135 million) in cash, or 50p ($0.95) per share. The price was more than 5p ($0.095) higher than the 44.75p ($0.85) at which Eidos’ stock closed on Monday, following a surge sparked by the Telegraph article.
The Reuters article revealed Eidos had been entertaining a 53p ($1.00) per share offer earlier this month from an unnamed buyer. However, the looming March 25 deadline for future financing set by Eidos’ primary lender, the Royal Bank of Scotland, apparently forced the company to accept a less-favorable deal. The pressure was no doubt accelerated by the six-month earnings report issued last week, which outlined how the company suffered a 26.5 million pound ($50.23 million) operating loss.
