Time Warner Buys 10 Million Additional Shares of Eidos Plc
Time Warner Entertainment has bought 10 million additional shares of SCi Entertainment. This increases Time Warner Entertainment’s stake in SCi Entertainment to 19.92% (or 52.5 million shares). SCi Entertainment changed their name to Eidos Plc last week. The shares were bought on December 11. Eidos is based in Wimbledon, South London. Eidos creates games such as Lara Croft and Hitman.
In 2006, Time Warner bought 10% in SCi Entertainment for $87.5 million. Since Eidos’ stock has dropped since then, several buyers have been lured into wanting to buy out the gaming outfit. Eidos’ market cap is currently around £47.45 million, down from £500 million about a year ago. It is currently unclear whether Time Warner made this investment as a hint towards a full buy-out or in order to provide the company with an infusion of capital to keep them afloat.
Time Warner will only be allowed to buy an additional 10% of the company unless they make a formal offer to buy-out the company. Other potential bidders rumored to be interested in Eidos include Electronic Arts and Ubisoft.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry