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Market Investment Firm buys out 20% of Eidos

11th December 2003, 11:58am
Well 19.1% to be exact. Schroders, a global asset management firm, acquired the huge chunk of Eidos and now controls the single largest stake in Eidos. This move is being intrepreted as a vote of confidence in the UK based publisher by market watchers. "If you buy the argument that videogames are an important medium for the future, then at the right price this would be a good investment for the long term," commented Nicholas Lovell of games industry finance specialists Lovell Consultancy.

"If they have made an investment of this size, they must think it is a good industry to be in, and if you adopt that view, then within the UK Eidos is one of the best ways to be involved in the games sector," he continued. "Its strong franchises offer some measure of downside protection even if things go wrong. It's the easiest way to play the games industry from a UK investor perspective, and it's a relatively safe buy - albeit safe within the context of the games industry, which is historically very volatile."

Surprisingly, however, the $35 million investment in the company had minimal effect on its stock prices, which are currently trading at the lower end of its recent range.
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by Vasu Chetty