Is the end near for the double-barreled Lara Croft?
Shares of UK-based Eidos (EIDE.L), down 95% over two years, fell another 23% this morning after the company announced US and Canadian gamers shunned “Tomb Raider: Underworld” on the shelves this Christmas.
The company warned it’s going back to its bank to talk debt covenants — not a good sign.
The last bullet left in Eidos’ arsenal is the upcoming “Batman: Arkham Asylum,” which looks good from the trailers. But then, so did “Tomb Raider: Underworld.”
The latest disaster puts Eidos’ future in question: The company is continually mentioned as an acquisition target. Time Warner (TWX), Electonic Arts (ERTS), and French gaming company Ubisoft have all been floated as possibly interested. But with Tomb Raider games not selling and movies already squeezed out of the tired franchise, is there anything left worth buying?