Takeover Made Even in Face of Faltering Finances
Lara Croft and Cloud, together at last? Now there’s a real Final Fantasy.
However, it appears that fantasy may become reality, as Square Enix has announced they will buy out Eidos for $120 million. Executives from both companies agreed to the deal in principle, but it must be approved by three quarters of Eidos shareholders at a meeting next month. It is expected the deal will pass.
The move comes even as Square Enix downgrades its earnings expectations for the fiscal year. The company now expects income to be off more than 62 percent, with sales tanking nearly 17 percent.
Also not helping matters for Square Enix is the expectation that they may not have a major title out in FY2008.
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Doesn’t really seem like the best time for SE to be buying out a competitor.