Jan 3, 2008

A source has told Next Generation that Midway an🎀d SCi/Eidos are evaluating the possibility of a merger.

As recently as November 2007, Tomb Raider house SCi openly announced that it is entertaining offers for the company. A source within a maj🙈or game publisher told Next Generation Wednesday that Chicago-based Midway is one company that is interested.

This would be the second time that the two companies were looking to merge, as Midway and Eidos parent SCi were in "very preliminary" talks three to four years ago, shortly after David Zucker came to Midway as CEO in 2003, according to the sour🧔ce. At the time, Midway's stock w🎃as around $20, but has since drastically slid to just $2.54 as of January 2.

Midway declined tꩵo comment on the rumor, and Eidos reps hadn't responded with a comment as of💮 press time.

Wedbush Morgan analyst Michael Pachterꦓ, who covers Midway, said that such a merger between the two companies was "feasible," although he admitted that both companies right now are relatively weak.

"In this case, one plus one could equal a 2.2 or 2.5," he said, illustrating that a combined entity could see 🥃some 🎃modest benefit.

Pachter said that the companies' portfolios could be complementary as well. As one entity, the two firms coul💯d maximize revenues by concentrating o🐻n their known strong brands and move away from more dubious projects, he said.

Midway's brands include the B𝄹litz football series, Mortal Kombat, Unreal Tournament and Stranglehold. SCi lays claim to big names🐭 like Hitman and Tomb Raider.

Pachter also ꩵsaid that Midway could benefit from SCi's European presence, and vice versa, an important upside in an ꦦindustry that is increasingly global.

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