Nexonius
04-25-2008, 01:50 PM
SCi raises £60m from share offer.
After turning down an unsolicited bid, British game developer SCi Entertainment plc, best known for its "Tomb Raider" series, sold a stake to real estate mogul Robert Tchenguiz and media partner Time Warner Inc. for £60 million ($119 million). The investors are getting the new shares at a 38% discount to Thursday's closing, SCi said, prompting investors to dump the stock Friday.
As a result of the deal, Time Warner will double its stake in the company to 20% from its prior 10% stake. However, Tchenguiz's stake varies depending upon media reports. According to Reuters (http://www.reuters.com/article/innovationNews/idUSL2512094320080425), Tchenguiz will become SCi's largest shareholder with a 22% stake, but The Times of London reports (http://business.timesonline.co.uk/tol/business/industry_sectors/technology/article3814897.ece) he will control 15.4% of the company.
Shares of SCi, which is responsible for one of video game's best-known characters, the buxom Lara Croft, sank to a five-year low after reporting in February it needed £50 million to survive, prompting speculation that the company could become an acquisition candidate. However, SCi, which is relatively small compared to its peers, is a perennial favorite takeover target. The likely acquirer in most rumors is French rival Ubisoft Entertainment SA. As recently as this week, speculation (http://www.thedeal.com/dealscape/2008/04/sci_receives_bid_borrows_from.php) of a Ubisoft bid ran rampant when SCi disclosed it had rebuffed an unsolicited offer.
The video game industry is amid a wave of consolidation following the recent launch of new consoles. The most noteworthy deals are Electronic Arts Inc.'s unsolicited $2 billion bid for Take-Two Interactive Software Inc. and Activision Inc.'s merger agreement with Vivendi's game unit Blizzard.
http://www.thedeal.com/dealscape/2008/04/tchenguiz_time_warner_raid_sci.php
Personally, I think this is a good thing for Warner Bros. Entertainment to cement themselves into the Video Game industry. Take Two and EA Games, Blizzard and Activision. Warner Bros. Interactive Entertainment does have Monolith Games (bought in 2004) as a producer, and Tt Games (bought in 2007). Maybe Monolith, Tt Games, and SCi games (and Eidos Interactive) can work together under WBIE. I can defiantly see that happening. I think Jeff Harris posted a thread in 2006 when I was just a stroller on TZ.
After turning down an unsolicited bid, British game developer SCi Entertainment plc, best known for its "Tomb Raider" series, sold a stake to real estate mogul Robert Tchenguiz and media partner Time Warner Inc. for £60 million ($119 million). The investors are getting the new shares at a 38% discount to Thursday's closing, SCi said, prompting investors to dump the stock Friday.
As a result of the deal, Time Warner will double its stake in the company to 20% from its prior 10% stake. However, Tchenguiz's stake varies depending upon media reports. According to Reuters (http://www.reuters.com/article/innovationNews/idUSL2512094320080425), Tchenguiz will become SCi's largest shareholder with a 22% stake, but The Times of London reports (http://business.timesonline.co.uk/tol/business/industry_sectors/technology/article3814897.ece) he will control 15.4% of the company.
Shares of SCi, which is responsible for one of video game's best-known characters, the buxom Lara Croft, sank to a five-year low after reporting in February it needed £50 million to survive, prompting speculation that the company could become an acquisition candidate. However, SCi, which is relatively small compared to its peers, is a perennial favorite takeover target. The likely acquirer in most rumors is French rival Ubisoft Entertainment SA. As recently as this week, speculation (http://www.thedeal.com/dealscape/2008/04/sci_receives_bid_borrows_from.php) of a Ubisoft bid ran rampant when SCi disclosed it had rebuffed an unsolicited offer.
The video game industry is amid a wave of consolidation following the recent launch of new consoles. The most noteworthy deals are Electronic Arts Inc.'s unsolicited $2 billion bid for Take-Two Interactive Software Inc. and Activision Inc.'s merger agreement with Vivendi's game unit Blizzard.
http://www.thedeal.com/dealscape/2008/04/tchenguiz_time_warner_raid_sci.php
Personally, I think this is a good thing for Warner Bros. Entertainment to cement themselves into the Video Game industry. Take Two and EA Games, Blizzard and Activision. Warner Bros. Interactive Entertainment does have Monolith Games (bought in 2004) as a producer, and Tt Games (bought in 2007). Maybe Monolith, Tt Games, and SCi games (and Eidos Interactive) can work together under WBIE. I can defiantly see that happening. I think Jeff Harris posted a thread in 2006 when I was just a stroller on TZ.