Rumor: Midway and SCi/Eidos Talking Merger Again
If Next Gen’s source is to be believed, Midway and SCi may be talking about a potential merger of the two companies. SCi announced that it’s entertaining offers for the company back in November, and according to a source from a major publisher, Midway is a potential suitor.
Several years ago, both Midway and SCi were purportedly in “very preliminary” talks, at which time Midway’s stock was around $20. As of yesterday, Midway’s stock is valued at $2.54, which is a major decrease. Midway refused to comment and Eidos failed to reply to Next Gen, but Wedbush Morgan analyst and my sworn adversary Michael Pachter believes that a merger is feasible, and that the two weak companies could potentially compliment each another.
Midway Chairman Ken Cron recently resigned from the company, having been a board member since 2004. Whether or not this – or Cron’s newly-appointed replacement, Shari Redstone – will have any impact on a potential merger remains unclear. But the one certainty in all of this is that both struggling companies could use some help.