-French based Infogrammes is buying UK based Gremlin for 25M� cash. Gremlin's revenues in 98 were 26.6M�, and earnings before tax were 4.1M�.Apparently there were several bidders, Infogrammes were the only ones to offer cash.
-French based Titus Interactive takes a 15% stake in Interplay for approx 10M$, with an option to buy stake up to 34%.
I would be very interested by your comments on these valuations.
It seems that the earnings informations in Les Echos were NOT CORRECT. Gremlin was in effect losing 0.8 M� in 98, while increasing its revenue by 39% . The cost base, namely distribution cost, is what made the situation no longer sustainable long term on a stand alone basis. It increased in 98 by 216%.
It seems that What attracted Infogramme buying Gremlin is mainly the complementarity of their products.
I work for an investment firm and was talking to one of our mutual fund managers about Eidos. He's known of and liked Eidos for quite some time. But he's just now starting to purchase it for his fund. Why? The fund, as many are, is limited to investing in companies which are a certain size. Eidos was too small, but now with its rising stock price its market capitalization is quite larger and large mutual funds can take positions. This may sound stupid, but it's the reality of institutional investing. It proves that Wall Street isn't always ahead of the curve and individual investors in many ways have an advantage. This stock will continue to rise!