Thursday, May 1st 2008
Infogrames Acquires Atari for $11 Million
Infogrames Entertainment and Atari today announced that they have reached a definitive agreement to merge. Under the terms of the merger agreement, Infogrames will acquire the remaining outstanding equity interests of Atari (other than shares of common stock held by Infogrames or its affiliates, which would be cancelled) for US$1.68 per share, equivalent to a cash payment of approximately US$11 million.
Infogrames is currently the majority shareholder in Atari holding approximately 51.4%. Following the merger, Atari will be a wholly-owned subsidiary of Infogrames. The merger will be funded by Infogrames from existing cash resources. The transaction is not subject to any financing conditions and is expected to close in the third calendar quarter of 2008.
This agreement is an essential and positive development for Infogrames and its shareholders. It brings Atari fully under the control of Infogrames, delivering a platform for future growth in the US. This step closely follows a series of recent major restructuring actions implemented in an effort to reposition Atari, streamline its corporate structure and reduce its annualized costs, including costs related to being a US public company.
The Board of Infogrames believes that full ownership of a restructured Atari is an important step for the Group, leading to a simplified operating structure that will deliver greater efficiency, provide the Group with greater opportunities to expand its US distribution capabilities and strengthen its platform for its global online initiatives.
In connection with the transaction, Infogrames has committed to lend Atari US$20 million, subject to the terms and conditions of the credit agreement between Atari and Infogrames. This loan will be used to fund Atari's operational cash requirements during the period between the date of the merger agreement and its closing.
Source:
Infogrames
Infogrames is currently the majority shareholder in Atari holding approximately 51.4%. Following the merger, Atari will be a wholly-owned subsidiary of Infogrames. The merger will be funded by Infogrames from existing cash resources. The transaction is not subject to any financing conditions and is expected to close in the third calendar quarter of 2008.
This agreement is an essential and positive development for Infogrames and its shareholders. It brings Atari fully under the control of Infogrames, delivering a platform for future growth in the US. This step closely follows a series of recent major restructuring actions implemented in an effort to reposition Atari, streamline its corporate structure and reduce its annualized costs, including costs related to being a US public company.
The Board of Infogrames believes that full ownership of a restructured Atari is an important step for the Group, leading to a simplified operating structure that will deliver greater efficiency, provide the Group with greater opportunities to expand its US distribution capabilities and strengthen its platform for its global online initiatives.
In connection with the transaction, Infogrames has committed to lend Atari US$20 million, subject to the terms and conditions of the credit agreement between Atari and Infogrames. This loan will be used to fund Atari's operational cash requirements during the period between the date of the merger agreement and its closing.
31 Comments on Infogrames Acquires Atari for $11 Million
I hope they arent putting all their eggs into TDU2 as unless they provide ALOT better support and customer service than they have with TDU they are just gonna sink alot deeper...
Face it, almost everyone in the world knows the name "Atari".
The modern youth didn't grow up with either of those names, and older people are perfectly aware that it's not the Atari they know. It's a waste of cash.
Go ask someone if they have ever heard of either Infogrames or Atari.
It's likely they have heard of Atari, and doubful they have heard of Infogrames.
I thought I remember reading that Infogrames was actually considering changing the whole company name to Atari for the brand recognition.
If you polish a turd, it's still at turd.
The name alone is worth the 11 million.
the name lives on but the product does not.
people have lost faith in the Atari name. there old skl games sell better
But alot of games that are for the masses like Sims(and the 10 millions flavors of it) will sell huge with the Atari name on it. Infogrames makes most of its games under those types of games. I have quite a few that my GF plays. And if I was a 14year old girl, and I wanted a computer game(i know most dont), my mom would go to a store looking, and say hmm, this gory blood game, or this game from Atari.
Not a tough choice there IMO. It will help them
EDIT : Im not saying the sims directly, but those types of games. The games that dont need high end video cards, and dual core procs to run
Thats all that really matters is the name
For example:
www.trademark.com.hk/text/textbrand.htm
Personally I feel the name has lost its luster, but I think the Atari name could make a come back in the gaming industry for small games like RCT, sims, and others just like it.
The older generations will use name recognition instead of just picking one. It might not sway everyone, but you get what I'm saying......