Eidos gains on white knight speculation
Infogrames comment, updates share price)
LONDON, June 30
(Reuters) - Shares in British computer game maker Eidos Plc
(LSE: EID.L - news) gained 12 pence on Friday after a
report that Electronic Arts might step in as a buyer to
thwart a hostile bid from France's Infogrames
Its stock stood at 457 pence at 1050
Eidos, the troubled creator of cyberspace heroine Lara
Croft and her Tomb Raider games series, said last week
it was in early stage talks that might lead to a
The company has struggled this year and issued a
series of profit warnings, reflecting problems in
adapting to the next generation of gaming
"We are looking at the company, but that is as far as
it goes," a spokeswoman for Infogrames told Reuters.
"There are no negotiations currently under
The Financial Times said Eidos had held preliminary
talks with both Infogrames and EA of the United States
and its board would meet on Monday to decide whether
"The management is thought to favour
a quick sale with EA," it said.
confirmed that Morgan Stanley Dean Witter was advising it
along with house broker, Dresdner Kleinwort
Havas Interactive, a unit of Vivendi whose name has
also been thrown into the rumour mill, has
"categorically denied" reports it was in talks to buy
Eidos shares, which fell as low as 260 pence a month
ago, rose above five pounds earlier this month on
At the The Global Video Games
I didn't say they were going to be taken over! I
wasn't posting a rumor. I just said that they should be
taken over. Big difference. I think it makes sense for
Yahoo to buy them and that maybe that is why the stock
acts so well. It sure isn't trading up because of
in between spins, there actually is quite a bit
of useful info in your posts.
Judging by your
reaction, i'd guess that you are really feeling it. I dont
wish anyone harm, i just want good information. Im
sorry if you've lost money on this position.
only commented because you ridiculed a guy for posting
a rumor, days after you posted a link to one of the
more absurd (although interesting) rumor-filled
messages i've ever seen. You can't post rumors then
lambaste others for doing the same.
Heres a who
wants to be a millionaire question for you...what do
you call a guy who criticizes someone for posting a
rumor, after posting his own rumors? I believe the word
is hypocrite. Is there a name for someone who calls
others hypocrites when they themself are one? Lets make
one up: a rabster.
just because you don't like the message. So I
posted a link from a rumor site, did I present it as
fact? No. In the last earnings conference call EA
admitted the online launch was slipping, and I posted a
link to comments from a current or ex employee who
expands on that. Is this a case of 2+2=4? Of course it's
probably not that simple and you should do your due
diligence. But it is relevant.
You're such a
hypocrite Marlon. One guy posts rumors about takeovers and
you're fine with that, another posts a rumor which is
negative and you jump to all these conclusions in your
riposte. If you want to see everything in a rose tinted
fashion then I suggest you limit your research to the
ERTS PR. And as for spinning, you claim I'm the person
saying the things in the post (err, that would be the
poster in the link, suprisingly enough), and then you
describe the truth about my position when you know the
truth is you know nothing about me.
The people I
feel sorry for aren't the shorts losing money but the
longs with such low self-esteem they come out of the
woodwork every time the stock spikes with their "Shorts
getting crushed! You're so stupid and I'm so smart,
ah-ha-hah!" messages. It's so immature. Everyone here has the
same goal, to make money. On either side of the fence
or on both sides, does it really matter? Are you the
Perfect Trader (TM) who's never mis-timed the market and
never bought anything that dropped? (next George
Clooney movie? "He's right in the middle of three bear
markets...", "It's where the money is!"). But you feel the
need to prove yourself smarter on every spike. Do you
visit old folks homes and laugh at them for not being
as strong as you? Do you jog past disabled people in
the street and laugh at them for not being as fast as
you? What would you do if nsthil or raph admitted they
were covering for a loss, mmm let me guess, send a
post about how smart you are?
someone elses rumors? This is the guy who posts
links to disgruntled ex-employee web sites! This is the
guy who states that ea management is full of coffee
and Dorito guys and has no gaming background. This is
the guy who comments that ea.com wont debut in july
(talk about a rumor!).
The truth is this is a
guy who is losing money on his short so he scours the
web looking for anything to make him feel better
about his investment. He tries like hell to tie in
anything he can to feel smarter about his choice of
shorting this stock. Sorry rab, but the truth is, you
shouldnt have shorted ea, you'd be much better off and not
in the red. Yes, you can claim to have cost averaged
(like all the shorts always do) up so that you arent
down much, but if you've done that all the way up, you
have extended yourself, and until ea takes a dip, you
not only raise your risk, but take money from other
potential investment gains, to try and stop the bleeding. I
still havent heard any of you guys admit that you were
wrong when you started shorting back in the high
fifties and low sixties. I enjoy the info you guys post,
as i grant that you are knowledgable and watch your
investments closely. The spin though, is sometimes downright
It's not as official a source as Bloomberg but
'Average of 50 shares per
(EA.Com) employee, vesting over three years. And they
can't even sell in the first year.'
statement is true. Ask anyone who has quit since the grant,
in either disgust or embarassment.
headcount swell beyond 400 employees worldwide. The core
membership of EA.Com has all but departed over the last
year. Why? Start with expenditures into the tens of
millions for failed tools such as BroadVision (aka:
FraudVision) and reliance upon outside 'experts' like the
lifesucking parasites known as Andersen Consulting (who
earned a sweet $100k per month to construct a mountain
of documentation for a system that never worked).
Matched to an executive staff virtually devoid of gaming
knowledge or experience (last gigs for some of the top
feeders: Wired, Gordon Biersch, Sara Lee, Frito-Lay).
Don't get me wrong, there's nothing better than a good
brew to chase down a mouthful of Doritos. I just don't
see how it relates to compelling Internet/PC/Console
Come July when EA.Com debuts (ha!) the
evidence will be quite clear. The 350 odd remaining
employees can look forward to cashing in their 50 shares
come 2004. Hell, after taxes you might have enough
left to pick up a copy of Motor City (presuming it has
shipped by then).
Anyone thinking that the AOL
marriage will reap rewards? One word:
Doesnt it sound as if ERTS is right on the ball
with this EA.com thing. NOT!!!
to Unveil Web Games by End of July (Update1)
Redwood City, California, June 29
(Bloomberg) -- Electronic Arts Inc., the No. 1 video-game
maker, plans to introduce in July a test version of an
Internet games site to avoid missing a Sept. 1 deadline
that may cost it a contract with America Online Inc.
Electronic Arts in November signed a 5-year, $81 million
agreement to provide games to America Online. If Electronic
Arts fails to unveil the games by Sept. 1, America
Online can cancel the agreement, according to a U.S.
Securities and Exchange Commission filing. Electronic Arts
already missed a June 1 deadline, forcing the company to
pay an annual fee to America Online sooner than
scheduled, the filing said.
California-based Electronic Arts is looking to boost sales and
profit by introducing online games for sports fans and
avid gamers. The company also is developing simple
parlor games such as cards and darts.
company will unveil additional features and games in two
phases by the end of November, said spokesman Jeff
Electronic Arts, the maker of games such
as ``Madden NFL'' and ``SimCity,'' earlier this year
created a separate class of stock to track the
performance of the company's online games unit, EA.com.
America Online purchased 10 percent
of EA.com's shares for $18.7 million, as well as a
warrant to acquire another 5 percent of the shares for
$1.3 million. The warrant can be exercised for $40
If Electronic Arts fails to sell shares
that track EA.com to the public within 12 months,
America Online can exchange the EA.com shares for regular
Electronic Arts shares, the filing said.
Online will share in revenue EA.com collects from games
on Internet sites or online services run by
companies other than America Online. Electronic Arts agreed
to spend $15 million marketing the games on America
Online over the life of the contract, the filing said.
EA.com has about 300 employees. Some 20 percent of the
workers developing the site come from consultants such as
Andersen Consulting and Proxicom Inc., the filing said.
EA.com had a loss of $54.6 million on sales of $20.9
million in the fiscal year ended March 31.
Corp. owns 5 percent of EA.com shares after selling
online games developer Kesmai Corp. to Electronic Arts.