CyberWorks Japan Hasn't Signed Pact to Buy Interplay (Update2)
By Cathy Chan
Hong Kong, June 1 (Bloomberg) -- Pacific Century CyberWorks Ltd., Hong Kong's largest telephone company, hasn't signed an agreement to buy U.S. video-game publisher Interplay Entertainment Corp., the head of CyberWorks' Japan unit said.
Interplay, which makes personal-computer role-playing games, said on Tuesday it is in talks to sell itself. Today, Hong Kong newspaper Sing Tao Daily reported that CyberWorks will buy Interplay for more than HK$800 million ($102.6 million).
``CyberWorks Japan is very interested in gaming assets in general,'' said Todd Bonner, chief executive of Pacific Century CyberWorks Japan Co., in an interview. ``We've no agreement signed with any acquisition target.'' He wouldn't say if CyberWorks is talking with Interplay.
CyberWorks is seeking a new formula for the unprofitable Network of the World entertainment Web site and adding games could attract more paying users. In February, CyberWorks Japan bought the game unit of Colorado-based software company Circadence Corp.
CyberWorks Chairman Richard Li said acquisitions by the Japan unit, 77 percent owned by CyberWorks, will benefit the company's Hong Kong and China businesses. CyberWorks Japan doesn't have much debt and so is the best unit to make the purchases, analysts said.
``PCCW Japan is mainly b2c play, it would have to tie in with our global b2c strategy,'' Li said in an interview last week. He wouldn't say whether CyberWorks is in talks with Interplay, known for role playing games such as Baldur's Gate.
Irvine, California-based Interplay, which lost money in 10 of the past 11 quarters, wants to expand by making more software for game consoles such as Microsoft Corp.'s new Xbox and Sony Corp.'s Playstation 2.
As of May 15, Paris-based Titus Interactive SA owned 49.6 percent of Interplay, about 25 million shares, and preferred stock convertible to 7.62 million common shares after May 31, according to a filing to the U.S. Securities and Exchange Commission.
A video-game Web site, computerandvideogames.com, said yesterday that Interplay will announce the sale within 10 days, citing unidentified people at the U.S. company.
``It's a really tough business,'' said Voon San Lai, a regional telecom analyst at BNP Paribas Peregrine Securities Ltd. ``You've a lot of independent game developers and that's probably the problem with the industry.''
CyberWorks shares rose 1 percent to HK$2.575. CyberWorks Japan stock gained 3.1 percent to 335 yen.
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