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After the recent speculations about Interplay's financial state today this news about Interplay have appeared; even though the share have gone up today, they're still down some 46 percent since late May when Interplay announced that it was in negotiations with an unidentified suitor over a potential acquisition.. Here's the full thread:
Interplay shares up; confirms job cuts
LOS ANGELES, July 27 (Reuters) - Shares in video game publisher Interplay Entertainment Corp. (NasdaqNM:IPLY - news) rebounded sharply on Friday morning and the company confirmed that it had undertaken a round of layoffs this week.
Shares Irvine, Calif.-based Interplay were up almost 16 percent at $1.75 in early afternoon trade on Nasdaq.
Even after that recovery, the shares were still down some 46 percent since late May when Interplay announced that it was in negotiations with an unidentified suitor over a potential acquisition.
A spokesman for the Interplay confirmed that the company laid off between 55 and 65 people this week. He could not immediately say how many employees were left after the cuts.
Year-to-date, Interplay shares are down almost 41 percent, including a 31 percent drop in the last four weeks, making it one of the weakest video game companies in a market where many leading publishers are up 40 percent or more.
On July 2, the company said discussions with the potential acquirer had been delayed, and that it had hired financial advisor Batchelder & Partners to explore strategic alternatives relating to a third-party acquisition.
The potential acquisition was first announced on May 29, though the company never identified the potential suitor. On June 22, French game publisher Titus Interactive said it would withdraw a plan to sell its 34 percent stake in Interplay, though it is unclear if that decision lead to the delayed talks.
``There's perhaps some speculation that while there probably won't be a strategic partner, things are getting back on track,'' noted one analyst who covers the video game industry, but asked not to be identified.
Michael Wallace, an analyst at UBS Warburg said the recent layoffs and resulting cost cutting were a positive sign.
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More about Interplay's state
