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Adam Creighton, Computer and Video Gaming (Subscribe)

Sunday, September 09, 2007

Disney should buy SCi/Eidos

SCi / Eidos, the publisher behind Tomb Raider, Deus Ex, Hitman, and the upcoming Kane and Lynch and Age of Conan (among others), is up for sale.

They're in "extremely preliminary discussions" with an unknown party or parties.

Ubisoft may or may not be interested, and Robert Tchenguiz (an "Iranian billionaire who bought a 20% stake in SCi last year") allegedly isn't interested.

Front runner in the speculation is Time Warner, who is getting back into the interactive game (how many restarts is this?), building up its Seattle presence, and definitely has the facilities to maximize licenses on the film, home entertainment, merchandising, and comic book fronts.

Trying to determine other potentially interested licensing parties is tough, since SCi's / Eidos's properties are licensed out pretty broadly -- Hitman (Fox); Kane & Lynch and Reservoir Dogs (Lionsgate); and Tomb Raider (Paramount).

You know who should buy them?

Disney.

Disney's on a bit of a controlled buying tear lately, though mostly on the development studios front (their most recent acquisition being Austin house Junction Point Studios). Disney acquiring Eidos would be a mini, interactive library equivalent of Sony buying MGM's library. It's a good way to bolster their catalogue, and grow their publishing and distribution services with any pieces of Eidos they want to keep.

Other possible interested parties (spurred by the Robert Tchenguiz private equity idea)?

Elevation Partners. They've been quiet of late. Too quite ...

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SOURCES: Gamespot.com, joystiq.com, kotaku.com, Xbox.com, IGN, GameInformer, Official XBox Magazine, CNN, gamesindustry.biz, and others.

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