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Technology Stocks : eidos--maker of Tomb Raider -- Ignore unavailable to you. Want to Upgrade?

To: hl who wrote (1149)	7/28/1998 10:19:00 AM
From: Bleeker	Read Replies (2) \| Respond to of 1773

Kai, the situation from year ago is a little different. EIDOS has confirmed that it wants to acquire and it will need more funds to make an acquisition. I am not suggesting that any of the rumored targets are a good fit but they do cost money (Virgin Interactive more than $100 million; same with Rage; Psygnosis $200 million. I am suggesting that no one wants to step in when the possibility of a bond offering is very high. The possibility of a stock offering I think is small given the depressed value of the stock. But a bond offering may drive down the stock further. Take a look at how THQI did this morning and it has zero debt. EIDOS already has $50 million in debt and it costs the company $3.2 million to service that debt each year. Another bond offering will not look good. This was one issue that the company did not face a year ago. Bleeker