SCi rebuffs Infogrames' advances

Atari's parent company confirms offer for Eidos parent, which declined to entertain current proposal.

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The games industry has seen a flurry of corporate activity in the past year. From EA consuming BioWare, to Bizarre moving to Activision, and Bungie breaking free of Microsoft, many high-profile gamemakers have either been bought up or have forged new relationships elsewhere. Deals are also being brokered at the publisher level, with the potential takeover of GTAIV publisher Take-Two by EA and the nearly concluded merger of Activision and Vivendi Games.

Another player in the industry receiving investment attention is SCi Entertainment, the parent company of British industry veteran Eidos. SCi has been receiving a lot of attention of late, previously reported to be from companies such as Ubisoft, Midway, and Time Warner. This week, French publisher Infogrames was confirmed as the latest suitor. The owner of Atari was forced to respond to rumours surrounding an offer for SCi, and it confirmed that although it has made an offer, SCi has so far declined to accept it.

Infogrames issued a statement saying that its offer had "potential to be significantly value enhancing to both SCi's and Infogrames' shareholders," but that SCi "declined, at this stage, to entertain Infogrames' offer." The exact details of the offer were not revealed, only that options "including but not limited to a potential merger with SCi" were considered.

SCi was forced to cut some 200 jobs and 14 games in February, despite the enduring popularity of flagship series Tomb Raider and Championship Manager. Infogrames is no stranger to financial problems either, having failed to post an annual profit since 1999. Despite this, the statement released to the press assured stakeholders that "Infogrames has sufficient resources to satisfy the cash element of its indicative offer" for SCi, and that the company would be able to move "expeditiously" if accepted. With SCi currently rescinding the offer, Infogrames states that it will make a further announcement if and when it's appropriate.

Discussion

7 comments
ctg867
ctg867

I think that Sci/Edios, Infrogames/Atari, and Midway should all get together and make a triumvirate. As separate companies, they have financial troubles, but together, then can work together, fill in the genre gaps each company has, and really make a quality company. Or just be one giant financial mess. I'm hoping for the prior. I got faith.

ObiKKa
ObiKKa

Eidos/SCI has recently scuttled the games that would certainly become crap, coz they just don't make money, lol, and so they now focus on letting the developers make good games, like with the Tomb Raider games, & the ultra-cool Hitman franchise! Lol. They're just going to get better, but they must not forget to continue to support new IPs, so, hence, they don't even need to be bought out by some other company, especially one as crap as Infogrames that has NEVER EVEN BOTHERED AT ALL to fix Atari's problems, including, for example, firing the former CEO Bruno Bonnell, who would always ignore the QA testers, & developers' pleas, and just shove the unfinished games out the door. What a shame! Hey, in fact, it seems to me that Atari probably had fixed those problems without Infogrames ever doing anything at all!

EPaul
EPaul

What games have Sci made?

lasberry
lasberry

I don't know why but for the last three years, I thought Ubisoft owned Eidos. Weird huh? Well, I think that Ubisoft is actually the better fit for SCi. Although Phil Harrison seems to have a plan over at Infogrames. Anyway, I'd go w/Ubisoft. Patcher's prediction for their exponential growth to $900 million in yearly profit by 2012 is looking far too accurate to pass up.

Mercanis
Mercanis

Would a merger help either company? They both seem to be weakening. Perhaps combining their forces would help?

supermariomelee
supermariomelee

Why would a company worse off than SCi(Infogrames) offer to buy the company? That's like when Movie Gallery bought Hollywood Video. That company was bleeding money before they bought HWV and a few years later had to file bankruptcy.

Spartan1017
Spartan1017

sci should let eidos go and then roll over and die... they've never produced anything of great quality anyway... then edios should merge with ubi soft and become the greatest dev/pub ever!!!!!!!!!!!!!!!!