| Thursday, May 1 2008 |
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.
Source: Infogrames
User comments
$11 million...........that was cheap!
11 million does seem cheap...
Well, it's sort of $31 million, although it's kind of like giving yourself the $20 million. Still seems like a bargain.
Eh? Why buy a company they already have primary control of??? I mean I suppose you might as well have the cow. But TBH I dont see it as wise considering the big hole Atari seems to have turned into they were better off just keeping their stake in it as that cow is all dried up IMHO.
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...
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...
The bought the company in order to get marketting rights to the name.
Face it, almost everyone in the world knows the name "Atari".
Face it, almost everyone in the world knows the name "Atari".
Atri have kinda lost ot on the last deacde game wise. its just lucky to still have a famous name.
by: Kreij;774240And face it, the name "Atari" is dead. Nobody cares about it. It's just like the Commodore brand, it's dead as well yet for some reason every other year some company buys it and tries to sell crap products under that flag.
The bought the company in order to get marketting rights to the name.
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.
While the name Atari is a bit tarnished, I don't think it is dead.
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.
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.
Ifogrames I know from Civ. Atari I know from Test Drive Unlimited. Atari sucks, and I will not buy anyhitn gfrom them till they fix TDU. I didn't buy a leather wrapped force feedback steering wheel and upgrade my system so a fucking game can still lockup.
i hope Infogrames can make Atari a much better company as over the years i have grown to hate Atari and the ways.
malware "infogrames"?
Yes IRA, that is the name of the company (it's French)... confused me the first time I saw it as well.
Good acquisition for such a small price. Civilization 5 better be good!
Inforgrames already owned 51% of Atari. They just bought the rest today for $11 million.
by: ktr;774671So it is more likely be the same crappy company ?.
Inforgrames already owned 51% of Atari. They just bought the rest today for $11 million.
by: AsRock;774756
So it is more likely be the same crappy company ?.
Yup...:cry:
If you polish a turd, it's still at turd.
by: azazel;774242they may have lost on the last decade, but Atari will never fade. They brought personal gaming into the home enviroment for millions of people. That is something that people will never forget. People < 15 years old might not grasp how big they were, but Im sure they are aware of the hold that atari had for years. That wont go away.
Atri have kinda lost ot on the last deacde game wise. its just lucky to still have a famous name.
The name alone is worth the 11 million.
by: asb2106;774764but still. a name cant do mush. wont sell a game if its crap :p
they may have lost on the last decade, but Atari will never fade. They brought personal gaming into the home enviroment for millions of people. That is something that people will never forget. People < 15 years old might not grasp how big they were, but Im sure they are aware of the hold that atari had for years. That wont go away.
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
by: azazel;774775
but still. a name cant do mush. wont sell a game if its crap :p
the name lives on but the product does not.
people have lost faith in the Atari name. there old skl games sell better
oh very true for the high end gaming market.
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
by: asb2106;774781yeah it will :p. take allot of advertisement as well.
oh very true for the high end gaming market.
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
by: asb2106;774764Yes and ever since they split up in '84 the brandname has been owned by several companies. The Atari you're talking about already faded, the company doesn't exist anymore. It's just a brandname.
but Atari will never fade. They brought personal gaming into the home enviroment for millions of people.
by: DanTheBanjoman;774833so your saying that brand name means nothing then?
Yes and ever since they split up in '84 the brandname has been owned by several companies. The Atari you're talking about already faded, the company doesn't exist anymore. It's just a brandname.
Thats all that really matters is the name
by: asb2106;774851The fact that they paid so little for it already shows the brand isn't worth much.
so your saying that brand name means nothing then?
Thats all that really matters is the name
For example:
http://www.trademark.com.hk/text/textbrand.htm
by: DanTheBanjoman;774855yah, I guess my perspective got skewed a bit in all this. I was trying to back up the Atari name as it seems everyone was putting it down. Its still easily worth the 11m that they paid. Thats really what Im trying to get across.
The fact that they paid so little for it already shows the brand isn't worth much.
For example:
http://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......
If some company really marketed the name again it could perhaps become big again. Though since the same happened to Commodore and many other names from the past I doubt it will end in a good way.
by: DanTheBanjoman;774868Same,
I doubt it will end in a good way.
I dont see a miraculous comeback,
Hey, I just bought this CD with 80 atari games on it from best buy for 10 bucks! The thing rocks! I have had a blast playing those :)
Funny enough, Infogrames made it, along with the monopoly game I got, and a heroes games for the GF.
Electronic monopoly is awesome!
by: DanTheBanjoman;774868you are right....
If some company really marketed the name again it could perhaps become big again. Though since the same happened to Commodore and many other names from the past I doubt it will end in a good way.
it´s a shame really, for me at least, cause I have the name ATARI linked to my first console and computer hardware, 23 years ago... :ohwell:
by: DanTheBanjoman;774868...and nolstagic sentiments have no place in business, for a name that is long lost.
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.
I hope the Atari name lives on!
My first computer was an Atari 800XL I owe so much to those days :)
SpartaDOS!
Alternate Reality Series!
Ultima IV!
BBs's :) 300 baud modems...
Just a memory, but a good one..
My first computer was an Atari 800XL I owe so much to those days :)
SpartaDOS!
Alternate Reality Series!
Ultima IV!
BBs's :) 300 baud modems...
Just a memory, but a good one..
my first computer was also 800XL .... super memories from it!:)
I hope the Atari name lives on too the memories of the 2600 was just brilliant an awesome console for its time.
Atari still makes some good games guys.
Anyone who actually played this one game that I cant remember its name right now, but it was where you were somehow setup for a murder in New York City and you were 0on the run from the cops. It was a really cool game till you got almost through the end of the game then it got really weird.
Plus Alone in the Dark is looking to be mighty interesting thats one game that I cant wait to actually start playing guys.:laugh::laugh:
Also it looks like KTR has been listening to Jeff Dunham lol:laugh::laugh:
Anyone who actually played this one game that I cant remember its name right now, but it was where you were somehow setup for a murder in New York City and you were 0on the run from the cops. It was a really cool game till you got almost through the end of the game then it got really weird.
Plus Alone in the Dark is looking to be mighty interesting thats one game that I cant wait to actually start playing guys.:laugh::laugh:
Also it looks like KTR has been listening to Jeff Dunham lol:laugh::laugh: