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.
