Eidos accepts Square Enix takeover offer

Tomb Raider creator Eidos today accepted a USD119m bid from Square Enix, best known for its Final Fantasy games.

Eidos recently revealed the new Lara Croft game had failed to sell well over Christmas and has seen its share price drop dramatically from a high of USD4 two years ago due to profit warnings and fears it could breach its overdraft conditions. The developer’s board has recommended accepting Square’s USD0.45 a-share offer, which is more than twice the value of the company’s stock. The intentions of Time Warner, owner of a 20% Eidos stake, are unclear. The media conglomerate is obliged to accept the deal unless it makes an offer itself.