Eidos Share Discussion Threads

[5huu] 14/1/2009 14:12

I did the same around 1hr ago. Very oversold IMHO. Interesting price now bouncing around & massive spread opened up?

[the crypt] 14/1/2009 14:01

got another 10k at 8.65p - got to be a good averaging down. Cannot see this one going to the wall. TW will step in.......

[the crypt] 14/1/2009 12:42

I AM SURE WB will make a loan to eidos, but only if they have their team at the helm. We have to hope that rogers and his pathetic motley crew ask for help from WB, AND WB insist that their guys go on the board.

[darrens] 14/1/2009 11:20

a44, I know some guys from squaresoft gave IO the once over before Christmas which started a few rumours but nothing more than that.

[a44] 14/1/2009 11:18

Yeap, why do you know any more than me?

Also hope enough chatter elsewhere suggests someone else to prevent TW a free ride.

[darrens] 14/1/2009 11:05

a44, you talking about Squaresoft?

[the crypt] 14/1/2009 10:57

dEALY - WELL MAYBE mr bROWN WILL ALLOW CAPITAL LOSSES TO BE OFFSET AGAINST OTHER INCOME....................

[dealy] 14/1/2009 10:54

The administrators in the UK are going to be busy if that's the case. Every company seems to be heading that way if you believe the negativity or you believe always in the worst case scenario actually transpiring.

Investors in North America right now are currently convinced that Nortel is about to go bust. That company has $10 billion of revenue and is the biggest telecoms equipment provider in North America and third biggest globally. They only have net debt of $1.7 billion. That's 6 weeks of sales.

We really are on the verge of talking hundreds of companies into bankruptcy.

[a44] 14/1/2009 10:48

IMHO TW may try and pick up from Administrators which is a possibility, but I am aware of interest from the Far East, so I believe this will stop a complete failure of the company.

Well that's what I believe and that is why my money is now in on this one!

[dealy] 14/1/2009 10:45

No, what is says is that if they want to buy shares they have to do it before January 25th.

Only in the event of a mandatory offer to all shareholders i.e. a takeover can they exceed 30%.

So there is nothing stopping TW buying about 10% of the company before January 25th.

That would be 25 million shares.

[5huu] 14/1/2009 10:42

Dealy, sorry, I missed an update (25/11)
On 25 April 2008 the Company entered into new share acquisition "standstill" arrangements with Warner Bros. Entertainment Inc ("Warner Bros.") that, among other things, restrict the ability of Warner Bros. and its affiliates to acquire additional shares in the Company until 25 January 2009. These arrangements are described on page 134 of the Company's prospectus dated 25 April 2008.

The Company now announces that it has consented to Warner Bros. and its affiliates acquiring more shares in the Company prior to 25 January 2009, should they wish to do so, provided that their aggregate holding is not increased to 30.0 per cent or more of all ordinary shares in issue. This represents an extension to the consent announced by the Company on 27 October 2008.

All the "standstill" arrangements with Warner Bros. will expire on 25 January 2009.

SO, I read that as after 25th, they can then go above the 30% threshold.
5huu

[dealy] 14/1/2009 10:35

Is it that TW cannot buy before January 25th or that they cannot buy more after that date?

Confused.

[5huu] 14/1/2009 10:34

Darren, Of course TW won't want to see their investment wasted, but more importantly they'll be looking to making a success of the partnership. Surely the batman tie up, if successful, will enhance that prospect. I really can't see them risk loosing something which has value ( & can add further value) to their business. Just my opinion.

[5huu] 14/1/2009 10:30

Also there was this RNS (29.10.08):

SCI Entertainment amends Warner Bros standstill deal, can buy shares earlier
LONDON (Thomson Financial) - UK game publisher SCI Entertainment Group Plc. said it entered into a new share acquisition 'standstill' arrangements with Warner Bros Entertainment Inc.

This will restrict the ability of Warner Bros and its affiliates to acquire additional shares in the company until Jan 25, 2009, providing Warner Bros' holding does not exceed 30 percent, SCI said.

Maybe we won't see TW buying before Jan 25th.
Crypt, I totally agree.
5huu

[darrens] 14/1/2009 10:29

Shuu, well I'll bet that TW don't want to see their investment wasted but what do think TW can do about it?

No point upping their stake - that doesn't give Eidos any cash at all at these prices.

Buy the company? Well, they'd have to pay massively over the odds because of their purchases over the past 12 months so that's a non-starter.

Wait for the company to go bust and buy what they want off the administrators? If they have any option then this is it. They may just want to wash their hands of the whole thing but this would be the cheapest way for them to get anything they want. It doesn't really help existing shareholders though.

[the crypt] 14/1/2009 10:26

5huu that is basically what I think - WB would buy a much larger holding- put their own guys on the board and only develop games that they have real beleif in and the rights to. WB are massive in the film industry and could make an abosolute killing if they take a larger stake in Eidos.

[5huu] 14/1/2009 10:17

Guys aren't we overlooking TW here. They are a major shareholder engaged in a strategic partnership. Titles already underway. Surely they offer Eidos some protection. If the share price stays anywhere these levels I can see them upping their stake considerably. I agree cash burn and covenant breach is a serious risk, but I just can't see it getting that far. Just my opinion.

[the crypt] 14/1/2009 10:05

they had more you stupid man!!!!!!!!!!!!! they got the revenue on TRU and other titles sold - DEaly are you simpole??????

[darrens] 14/1/2009 10:04

dealy, I've thought about it but not sure what your point is.

They *are* out of cash. They've told us in the trading statement. They will continue to be out of cash come June. Again, they've told us in the trading statement.

These surely aren't thing that need any debate?

[dealy] 14/1/2009 09:59

When the company successfully raised £60m last year it didn't say:

a) if we miss our revenue targets by 10% we will be out of cash and will probably go broke

b) £60m is not enough - we need £70m to be sure

Think about it.

[darrens] 14/1/2009 09:58

Well, I assume it was all "invested" in the business (less the £5m fees). But, they aren't seeing any returns from that investment because of poor judgements that they made.

[dealy] 14/1/2009 09:49

That £60m has not all been wasted (I assume). The market cap - indeed enterprise value - is less than that at present. Unless it has all been paid out in bonuses the likelihood is that a lot of the money has been invested in the business and has some value.

By the way, the company must have very high tax losses which are also valuable to an acquiror.