U2's Bono might not get involved in the videogame industry after all.
NEW YORK (The Hollywood Reporter) -- U2's Bono might not get involved in the videogame industry after all.
About two weeks after accepting an all-cash takeover bid by private equity firm Elevation Partners, in which Bono and former executives of Electronic Arts and Apple Computer are partners, U.K. videogame maker Eidos changed course April 7.
In a statement, Eidos said that after further discussions with both sides, its board now unanimously recommends that shareholders accept a rival stock offer from U.K. game maker SCi Entertainment Group. The firm cited price considerations because of recent strong gains in SCi's stock as a key driver of its decision.
"In light of the recent movement in the SCi share price, and in the absence of an increased cash offer from Elevation, the board recognizes that whilst there are certain key risks for Eidos shareholders in accepting the SCi offer, the current implied value of the SCi offer ... represents a significant premium to Elevation's offer," Eidos said in a statement.
SCi's stock offer is worth about 72.8 pence ($1.36) per Eidos share based on the closing price of SCi shares April 6, Eidos argued. Elevation has offered 50 pence (93 cents) per share in cash and has not raised the price tag of that offer, it added.
Elevation officials couldn't be reached for comment.
SCi CEO Jane Cavanagh has said her firm would help boost the performance of the Eidos business, making a combination more attractive than a sale to Elevation, which would take Eidos private.
Menlo Park, Calif.-based Elevation was founded last year with the goal of focusing on large-scale opportunities in media, entertainment and consumer businesses. Eidos would have become the firm's first major investment.
Besides Bono, the company's leadership team includes former EA president/chief operating officer John Riccitiello and former Apple financial chief Fred Anderson.