The Eidos share price has more than doubled this morning, on the news that Square Enix has made an offer for the company.
The motivation is obvious, and as Yoichi Wada, President of Square Enix, puts it:
“Eidos’ products are highly complementary to our business and will accelerate our aggressive expansion into Western markets.”
Chairman of Eidos, Tim Ryan, makes the motivation for Eidos equally clear:
â€œWe believe that this cash offer provides Eidos Shareholders with an attractive price and certainty in today’s challenging market backdrop and economic outlook.”
Or: let’s cut our losses. The share price had a twelve-month high of 64 pence, and is currently up over 121 percent to 31 pence. The Square Enix offer price is 32 pence.
Though Eidos has to some extent recovered critically of late, I can’t see Square Enix making things worse. Can they?