Square Enix and Eidos Come to Buyout Terms

If you’ve been following the Square Enix buyout of Eidos like we have, you know that one of the terms put forth by Eidos shareholders has been that Square Enix had to submit a business plan for the purchase within 28 days from the initial offer back on February 12th. Today, both companies announced that Square Enix had not only submitted the plan well before the imposed deadline, but that the Eidos board of directors is supporting the arrangement, and recommending it to shareholders. With the plan of action submitted and now approved by the Eidos board, there doesn’t seem to be anything in place to stop the deal from going down.

Read the rest of this entry »

Square Enix Buyout of Eidos Gets More Backing

Just a couple of days removed from news that Warner Bros. was backing the buyout of Eidos by Square Enix, news is coming out that yet another major Eidos investor has agreed to back the proposed deal. According to statements released by both Square Enix and Eidos this morning, the companies have reached an agreement with Pioneer Investment Management Ltd., which currently controls just over 10 percent of Eidos, to back the buyout proposal for the Tomb Raider publisher. This brings the total backing for the proposed to more than 45 percent, over half of the 75 percent required for the deal to go through.

The agreement reached with Pioneer has a few conditions attached, similar to the agreement reached with Warner Bros. As with Warner, Pioneer has the right to back out of the deal if a formal business plan is not posted within 28 days, and Pioneer can also back out if a higher offer for Eidos is tendered by a third party. Unlike the agreement with Warner, though, any new offer for Eidos has to exceed the Square Enix offer by at least 15 percent for Pioneer to exercise its right to step away from the deal.

With 45 percent of Eidos shares now accounted for, Square Enix still needs to secure the support of another 30 percent of shares in the publisher before heading into an investor vote on the deal, currently scheduled for the end of next month. If all goes well for Square Enix, though, it might not be too much longer before the home of Final Fantasy has to add a few new rooms for an archaeologist, a hitman, a few more members of the Eidos extended family. The first time I see Agent 47 line up Cloud Strife in the crosshairs of a sniper scope, though, I think it’ll be safe to say the deal has been done.

Square Enix Gets Warner Thumbs Up for Eidos Buyout

One of the big surprises during last week’s gaming news was that underdog Square Enix actually ended up being the front runner to acquire struggling publisher Eidos. One of the big lingering questions was, what did former prime suspect and current 20 percent stockholder Warner Bros. think about the deal? Today, we got our answer: “Why not?”

According to statements released today, Eidos and Square Enix both claim that they have “obtained irrevocable undertaking” from Warner in support of Square’s proposed buyout. With Warner’s 20 percent stake accounted for, that makes a total of roughly 36 percent of shares in the company backing the deal, just under half of the 75 percent needed for the deal to move forward.

While the thumbs up from Warner is good news for Square Enix, that doesn’t mean Warner has taken itself out of the running completely. As a condition of the backing agreement, Warner has the right to withdraw its backing of the deal if Square Enix doesn’t formally present its business plan for Eidos within 28 days, or if another party (including any subsidiary of Warner) tenders a higher offer for Eidos. Of course, with Square Enix offering more than 250 percent of the stock price at the time the offer was made, it might be an offer hard for another company to top.

Namco to Attempt D3 Buyout

How much financial news can the video game industry take in one day? First there was news of Square Enix’s offer to buy Eidos, followed shortly behind by news that Midway had filed for Chapter 11 bankruptcy. Now comes word that Namco Bandai has decided to push for a buyout of Japanese publisher D3, Inc.

Coming hot on the heels of its Q3 financial statements, Namco Bandai Holdings, the company responsible for all of Namco’s business interests, has announced its intentions to turn D3 into a full subsidiary. According to a statement released to investors today, Namco claims to have already reached an agreement to purchase a majority 70 percent stake in D3 through deals with investors, and is looking to gain a full 100 percent interest in the publisher. Citing the move as a way to expand and thrive in the current economic climate, Namco presented a number of strong reasons for the buyout to go through, including granting D3 access to Namco’s stable of characters for its casual games line, as well as deals letting D3 take advantage of Namco’s substantial toy, anime, and amusement center resources. For its part, Namco would benefit from the various D3 licenses and technologies, including the Vicious Engine technology developed by D3 owned studio, Vicious Cycle Software.

While the deal isn’t set in stone just yet, and details on exactly what agreements Namco made to potentially acquire nearly three-quarters of D3 already, it’s hard to deny that this is one of those time when a buyout actually looks like it might be a good thing for everyone involved. D3’s unique lineup and innovative technologies teamed with Namco’s powerhouse franchises and financing could be a substantial boost to both companies’ bottom line.

Eidos Board Recommends Square Enix Deal

Could this be a big score for the underdog? Over the past few months, the fate of Tomb Raider publisher, Eidos, has been up in the air, with bigger publishers circling overhead just waiting for an opportunity to swoop in for the kill. Rumors were that everyone Electronic Arts to Ubisoft was eyeing the troubled studio for a potential takeover. There were even rumors that Square Enix, of all places, was looking to pick up Eidos. The odds on favorite, though, had to be Warner Bros., who already owned a 20 percent stake in the company, and who also had recently picked up the exclusive film rights to Eidos properties, including Tomb Raider. Warner was also coming into a substantial amount of available cash, which would have made a very tempting proposition for both Warner and Eidos stockholders. And with official word last month confirming that Eidos was indeed in buyout talks with another company, a Warner purchase was all but a sure thing, right? Think again.

Read the rest of this entry »

GameFly Snatches Up Shacknews

It looks like GameFly isn’t content to just rent out games anymore. Now it wants to report on them as well. Late today, the online game rental company announced that it has acquired independent video game website, Shacknews. Under the terms of the new deal, GameFly has purchased all related Shacknews destinations, including FileShack and Shackvideo. Unlike other recent media buyouts though, this time around it looks like the staff at Shacknews won’t be seeing any pink slips anytime soon. Instead, GameFly plans to maintain the Shacknews editorial staff and direction, and plans to beef up the site with additional resources.

“GameFly has demonstrated a true understanding of and commitment to Shacknews’ gaming culture,” said Shacknews founder Steve Gibson. “We are confident they will protect the legacy and community we’ve established, while at the same time providing much needed resources to expand into new and exciting areas.”

“With its avid, engaged community and commitment to providing an independent voice for gamers seeking the most accurate and up-to-date news and information, it goes to the core of our vision as a company, which is to be the ultimate resource for the entire gaming community,” added GameFly CEO David Hodess.

Ubisoft Buttons Up Action Pants Deal

Slowly, it looks like things might be returning to business as usual for the video game industry. News of new studios and big mergers seems to be replacing news of closures and layoffs. Case in point: Ubisoft announced today that it is expanding its North American presence with the inking of a deal to purchase Vancouver based development studio, Action Pants. This deal marks Ubisoft’s first in-house development studio on the North American West Coast.

“We have been looking closely at Vancouver for some time, as we wished to set up a presence in what is one of the industry’s biggest talent pools,” said Christine Burgess-Quemard, executive director of worldwide production studios at Ubisoft. “The creative talent at Action Pants made the decision an easy one, and we are delighted to both establish ourselves in the region as well as welcome a fantastic group of experienced developers who can start exchanging with our other teams worldwide.”

Read the rest of this entry »