Midway, SCi Begin Merger Talks
Merger talks between SCi [http://www.midway.com/]have begun again, after "very preliminary" talks three to four years ago failed to produce any results.
This time, however, Midway's stock price is much lower than it was back then, currently trading at $2.54 as of yesterday, compared with roughly $20 at the time of the earlier stocks. But industry analyst Michael Pachter, speaking in a Activision and Vivendi [http://www.next-gen.biz/index.php?option=com_content&task=view&id=8505&Itemid=2], saying, "In this case, one plus one could equal a 2.2 or 2.5."
Pachter also said a merger would allow the companies to focus on their known strengths while avoiding "more dubious projects," which would help maximize revenues. Midway's most visible franchises include Tomb Raider [http://www.mortalkombatonline.com/]. A merger could also help both companies work more effectively in the global marketplace, according to Pachter, with Midway taking advantage of SCi's European strength while SCi could benefit from Midway's North American brand recognition.
Neither Midway nor Eidos would comment on the rumor.
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Merger talks between SCi [http://www.midway.com/]have begun again, after "very preliminary" talks three to four years ago failed to produce any results.
This time, however, Midway's stock price is much lower than it was back then, currently trading at $2.54 as of yesterday, compared with roughly $20 at the time of the earlier stocks. But industry analyst Michael Pachter, speaking in a Activision and Vivendi [http://www.next-gen.biz/index.php?option=com_content&task=view&id=8505&Itemid=2], saying, "In this case, one plus one could equal a 2.2 or 2.5."
Pachter also said a merger would allow the companies to focus on their known strengths while avoiding "more dubious projects," which would help maximize revenues. Midway's most visible franchises include Tomb Raider [http://www.mortalkombatonline.com/]. A merger could also help both companies work more effectively in the global marketplace, according to Pachter, with Midway taking advantage of SCi's European strength while SCi could benefit from Midway's North American brand recognition.
Neither Midway nor Eidos would comment on the rumor.
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