Atari and Infogrames Finalize Re-Merger
Atari and Infogrames Finalize Re-Merger
Atari has entered into a definitive agreement with Infogrames that will have Infogrames fully acquire the portions of Atari that it does not already own.
Infogrames will acquire all the outstanding stock of Atari that it does not own for $1.68 per share. Infogrames already owns 51.4% of Atari's outstanding stock, and will require the remainder for approximately $11 million.
According to David Gardner, Chief Executive Officer of Infogrames, "Bringing Atari US and Infogrames businesses together will enable us to create a simplified global structure for our business as we seek to re-build a well-managed, cohesive and financially disciplined company. This is a key strategic event for Infogrames that will benefit all of our shareholders. I believe that this transaction will generate significant benefits for the Group."
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I'm no financial expert, but if I read this correctly than Atari is currently worth less than 24 Million Dollars, which isn't that much at all, taking into account that developing a AAA title costs much more. I fear I won't see my Test Drive Unlimited 2 any time soon :-(
Atari was close to financial failure and has been pairing down its business for some time. While not certain, it's quite possible that Infogrames is repurchasing Atari only because Atari couldn't find sufficient funding to turn around on its own.
Thank you, I was suspecting that. Well, Atari was re-invented quite often over the last 35 years, let's see what happens next.
BTW, just a couple of days ago, Infogrames made a bid for SCi (Eidos), but SCi refused. So it's not only Activision/Vivendi Games or EA vs Take 2, at the moment...
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