Sunday Times says investors want the Eidos parent company's founder/CEO and other upper management to step down.
Back in September, Eidos parent company SCi Entertainment announced that it was in "extremely preliminary" talks with a potential acquirer. In the following months, Ubisoft, Time Warner, Midway, and an unnamed Chinese company were all reported as being in talks with the publisher of the Tomb Raider and Hitman franchises. However, last week the publisher announced that it had ended talks about an acquisition, saying it didn't believe it could get full value for its operation. SCi responded by shedding more than half its value in a single day.
While such a turn of events would be a cause for concern for any investor, The Sunday Times is reporting that some Eidos shareholders are demanding resignations from key members of the management team. According to the report, one "top investor" described SCi founder and CEO Jane Cavanagh's position as "untenable," with commercial director Bill Ennis and chairman Tim Ryan also the subject of shareholder ire. According to the report, finance director Phil Rogers is expected to take over as interim CEO should Cavanagh step down.
The Sunday Times also suggests that an SCi acquisition was never close to completion, and sources close to the company said the board didn't receive a single firm offer for the operation. Representatives with Eidos had not returned GameSpot's requests for comment as of press time.
Eidos is not the only publisher to face boardroom upheaval after getting on the wrong side of its shareholders. Last year, a group of Take-Two Interactive investors seized control of the company by voting out the board of directors and replacing the members with their own choices. Before board members were given their walking papers, Take-Two publicly raised the possibility of an acquisition as a last-ditch effort to raise the stock price and satiate angry shareholders. No buyer was found, and the board member change went through as planned.
What more can be said after the old phony-acquisition-rummor technique doesn't work? "Well, we tried..."
'Sunday Times says investors want the EDIOS parent company's founder/CEO and other upper management to step down.' I wonder what company this Edios is...
Unfortunately it won't stop them making another Kaybe and Lynch. Lets hope the shareholders are smart enough and get rid of the board and make Jeff CEO to get them back.
Bad things can only lead to more bad things! I think that an internal "purification" is welcomed by all!
Eidos needs to license midware. It would help them to concentrate on making the games a lot more instead of trying to make great ambitious games out of decent (at best) engines. Even if they'd get money from SCEA or MS for temporary exclusiveness (6-12mos). Or do what Team Ninja is doing with Ninja Gaiden 2, or Epic did with Gears of War. Imagine Rare, Naughty Dog, or Ubi-Soft Montreal making a Tomb Raider (new-gen) game. Now that would have caused another Hollywood movie. For sure!
I really want to play Hitman 5. I hope some company would buy them or they go through a merger to survive a bit longer.
The whole CNet and K&L deal is such an issolated incident, I doubt it has anything to do with this development. With that said, this most recent development is definitely not good. We need a Hitman 5!
I like to think this has nothing to do with recent events (Kane & Lynch + Cnet) but hopefully future projects from Edios don't stop coming out due to this major hic-up...
Well Eidos that's what you get when you publish a game as lame as Kane & Lynch and then BRIBE CNet for a good review. 8)
I thought Ubisoft was only a rumored buyer, wasn't it? Anyhow, I hope Ubisoft gets this one. I wonder why nobody is just taking this deal as it is, is SCi tring to get way too much money for this, like the other high profile buyouts?
Eidos FTW. Don't let stuff like this happen again. Please! *Points toward Deus Ex, Tomb Raider Anniversary, Hitman 2...*
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