Eidos pays pounds 34m for Internet stake

EIDOS, THE computer games group behind Tomb Raider, is paying pounds 34m to buy a 20 per cent stake in a US Internet outfit to boost its chances of selling products online. Maximum Holdings, which distributes games, consoles and other related products over the Net, has about 3.5 million visitors to its site, called GameCave, every month. Charles Cornwall, Eidos' chief executive, said: "As a publisher and content owner, Eidos has limited scope to develop and implement an Internet strategy on a stand-alone basis."

Eidos said Maximum would be merging with DVD Express, which sells DVD movies and video disks over the Net. Eidos will hold 10.2 per cent of Maximum after the DVD move goes ahead. Mr Cornwall said Maximum would be floating in the US early next year in a move which was likely to see the Eidos stake rocket in value.