Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bleeker who wrote (1166)	7/31/1998 10:46:00 PM
From: Jeff Lins	Read Replies (1) \| Respond to of 1773

Bleeker, I share your concern regarding an acquisition, debt, and maintaining positive EPS. But IF this rumor were to materialize, how would Sony's 20% stake affect us? I can see if we were to own a stake in Sony we could be in trouble as we would have to include our proportionate share of losses on our income statement or balance sheet. But IF we were to get Psygnosis I would think that they would be under Eidos' control. (Naturally, if the acquisition proved dilutive it would not be good) But I don't see how Sony's woes would be related to them having a stake in EIDSY, or our having a stake in Psygnosis. Regarding Psygnosis, is there any way to determine if they have been a profitable unit? I understand that there have been problems with Psygnosis and Sony, in that Psyg. began producing titles for Sega and also plan to do work for the N64. Evidently they didn't have total control of their actions. Would we? Would this be part of the deal? Would Sony prohibit us from publishing on other formats? Psygnosis has recently agreed to do the console ports of MSFT's windows games, which could be a good thing. A positive to the deal would be that being close to Sony would mean a little extra attention and consultation for developing Playstation 2 titles. IF there is any truth to this rumor, I would say that it would be the first time one of my WAG's would actually come true. That guess being that Sony would sell Psyg. for a discount in exchange for a Lara exclusive. Another guess was that Sony would want Lara as a spokesthing. I would therefore want my share of the finders fee for negotiating the deal :) On the other hand, if Sony is having some bad times and they are even willing to unload Psygnosis for a deal, I have to wonder if they have been profitable. Then again, all of this is just wild speculation... JeffLins