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Published in Gaming

Square Enix gets Warner?s support

by on17 February 2009

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Clears the way for them to acquire Eidos

As we had previously explained in our last story, the major roadblock that could have thrown cold water on Square Enix getting Eidos to accept its bid to acquire the company could have been Time Warner, which happens to be the company’s largest shareholder.

According to our sources, this obstacle has now been removed, as Warner has given its blessing for Square Enix to acquire Eidos. Our sources are telling us that the Eidos Board of Directors will recommend that Eidos shareholders accept the bid from Square Enix when the deal will come for a vote in Match.

The blessing from Time Warner was necessary, as the company owns 20 percent of Eidos and the deal would have likely not moved forward without their support. Of course, the support of Warner for this deal is conditional on the possibility that no other bidder emerges with a bigger offer.

It was pretty much a given before the offer from Eidos that Time Warner was on the road to a full buyout of the company with the intention of expanding its own entertainment software division. However, it seems with the Square Enix deal that Warner can make more money, as plenty of other avenues are currently open for the company to expand their software development division should they want to do so.

Last modified on 17 February 2009
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