Rumor: Midway and SCi/Eidos Talking Merger Again
By Chris on Thursday, January 3rd, 2008 at 3:46 PM PST In Computer, Eidos, Game Companies, Game Consoles, Game Platforms, Games, Games Industry, Microsoft, Midway, Nintendo, Nintendo, Portable, Sony, Sony
If Next Gen’s source is to be believed, Midway and SCi may be talking about a potential merger of the two companies. SCi announced that it’s entertaining offers for the company back in November, and according to a source from a major publisher, Midway is a potential suitor.
Several years ago, both Midway and SCi were purportedly in “very preliminary” talks, at which time Midway’s stock was around $20. As of yesterday, Midway’s stock is valued at $2.54, which is a major decrease. Midway refused to comment and Eidos failed to reply to Next Gen, but Wedbush Morgan analyst and my sworn adversary Michael Pachter believes that a merger is feasible, and that the two weak companies could potentially compliment each another.
Midway Chairman Ken Cron recently resigned from the company, having been a board member since 2004. Whether or not this – or Cron’s newly-appointed replacement, Shari Redstone – will have any impact on a potential merger remains unclear. But the one certainty in all of this is that both struggling companies could use some help.
