TIME WARNER IN TALKS WITH SCI GROUP

[ 23 October 2006 ]

Time Warner is reportedly in talks with UK publisher SCi Entertainment Group - owner of Eidos plc - for a 10% stake in the company, according to The Business Online. Sources in America say initial discussions involved a full bid for SCI but this has been put on hold because Time Warner executives are preoccupied with a share buyback and the restructuring of AOL.

Based in Wimbledon, SCi Entertainment Group Plc consists of publishing operations across Europe and the US and several development studios including Crystal Dynamics, IO Interactive and Pivotal Games as well as a valuable stake in other studios.

The Group recently announced its core earnings had reached 28.8 million pounds ($54.58 million) in the year to June 30, on revenue of 179.1 million and a pre-tax profit of 8.1 million. The results to 30 June 2006 were the first full year results following SCi's acquisition of Eidos PLC in May 2005.