Giant Bomb News

32 Comments

Business Briefs

Midway files for Chapter 11, Square Enix after Eidos, Bandai Namco has a buyout of its own.

- Midway has filed for Chapter 11 bankruptcy. The protection afforded by Chapter 11 was necessary as the company owed out millions that needed to be repaid as a result of the company's recent sale. Midway head Matt Booty was quoted as saying "we have been focused on realigning our operations and improving our execution, and this filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives. This Chapter 11 filing is the next logical step in an ongoing process to address our capital structure."

- Square Enix has put in a $120 million bid to buy Eidos, which is more than the company is actually worth. Eidos' stock price shot up on the news as people attempt to get in for lower than the buyout premium. The board of directors for Eidos are in favor of the deal and state that it's "in the best interests of shareholders."

- The recent layoffs over at Sega have apparently included some project cancelations. Obsidian's Aliens RPG--which it was producing for Sega--is said to be canceled and some number of Obsidian employees have been laid off.

- Gamasutra is reporting that Bandai Namco is working to buy D3 Publisher. BNGI has stated that it's already reached an agreement to purchase 70 percent of D3, but it wants the WHOLE THING FOR ITSELF so that it can properly... you know... synergize or something.
Jeff Gerstmann on Google+
32 Comments
Posted by Jeff
- Midway has filed for Chapter 11 bankruptcy. The protection afforded by Chapter 11 was necessary as the company owed out millions that needed to be repaid as a result of the company's recent sale. Midway head Matt Booty was quoted as saying "we have been focused on realigning our operations and improving our execution, and this filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives. This Chapter 11 filing is the next logical step in an ongoing process to address our capital structure."

- Square Enix has put in a $120 million bid to buy Eidos, which is more than the company is actually worth. Eidos' stock price shot up on the news as people attempt to get in for lower than the buyout premium. The board of directors for Eidos are in favor of the deal and state that it's "in the best interests of shareholders."

- The recent layoffs over at Sega have apparently included some project cancelations. Obsidian's Aliens RPG--which it was producing for Sega--is said to be canceled and some number of Obsidian employees have been laid off.

- Gamasutra is reporting that Bandai Namco is working to buy D3 Publisher. BNGI has stated that it's already reached an agreement to purchase 70 percent of D3, but it wants the WHOLE THING FOR ITSELF so that it can properly... you know... synergize or something.
Posted by Drebin_893

Wow.

Posted by OmegaPirate

The worlds goin crazeh!!

Posted by LiquidPrince

Square wants Eidos? Is Lara Croft gonna be Asian in the next game?

Online
Posted by Cerza

Yup I just saw this bit about Midway filing for good old chapter 11. Today is a sad day indeed. From a realistic perspective, we all knew it was coming though.

Posted by GHT

fortunately, Midway has reassured everyone that bankruptcy doesn't mean the end of EGM, er.. Mortal Kombat.

(they're fucked)

Posted by deaux

The ability to buy western companies on the cheap is one of the few bright spots for Japanese publishers these days.

Posted by LiveOrDie1212

no suprise here, all the small companies are getting fried in this tough economy.

Posted by FrankCanada97

What a shame...

Posted by OldManLollipop

This is just the latest step towards selling off the Mortal Kombat license.

Or, uh.... something.

Posted by Snail

Everyone is buying everyone.

Why can't we all be friends? ;__;

Posted by PhilESkyline

Tough break for Eidos. I wonder if Jeff is smiling just a little bit inside lol.

Posted by InFamous91

Damn Midway.....Square Enix Wants Eidos????

Posted by ferrarimanf355
Posted by Infocom

Did Giancarlo Varanini join any of these companies?

Posted by Kohe321

Not good for Midway :/

Edited by strangeling

All the financial stuff aside, this is the first I've heard of an Aliens rpg.  That could be sooo awesome.

I'll have to look up Obsidian's track record.  But Sega was publishing it?  Someone needs to pick it up and run with it.

- - - - - - - -

Okay, I checked.  I'd say it was in good enough hands.
Posted by chronicsmoke

please midway pull through,i dont know what id do without my mortal kombat

Posted by Aaox

Image this comment is actually just a large sigh.

Posted by License_To_Bill

... Is Mr. Rorie okay?

Posted by Wright

D3 made a naruto game, so of course namco bandai is going to buy them! sucks about the midway thing though. you never know what crazy plots square enix is cooking up.

Posted by MrKlorox

Damn, I remember reading about the Alien RPG. Kinda wish it would have come out. Just watched AVP 2 last night.

Posted by SoothsayerGB

Failing companies failed.  No surprises there.

Posted by Meteora

I really shouldn't have convinced myself to believing the game industry is recession-proof. =/

Posted by BiggerBomb
Drebin_893 said:
"Wow."

Yeah, I'm not sure if there is anything else to say.
Posted by Neorub

Thats pretty horrible, the best to those affected...is Rory affected??

Posted by ZombiePie

This is surprising but when I think about it I understand it. Square wants Eidos because of they have a strong worldwide presence and Eidos is a large publisher. Ever since they lost their bid for Koei they have been seeking a good replacement.

Moderator
Posted by Redfield

It's a hard time for all businesses, but Midway... Man that sucks, even though it's not even close to being unexpected.

Posted by cspiffo

Only the strongest companies will survive this recession.  Banks still are unwilling to take any risks in offering credit to these studios who need capital to make games hence the layoffs.  In better times midway could have survived this.  So sad :^(

Posted by WickedCobra03

That sucks for midway.  Man, they used to be huge in the 90's!  So sad to see these companies go down like this!

Posted by Media_Master

ok

Posted by giyanks22

The Great Depression...
Of Video games lol...