 Infogrames Entertainment before today owned 51.2% of the classic video game maker Atari. However, now the two companies have reached an agreement to merge, as rumored. Atari gets something else out of this deal, $20 million dollars and a parent company who has had financial troubles quarter after quarter.
In the agreement, Infogrames aquires the outstanding shares of Atari, Inc. in cash for US$1.68 per share or $11 million dollars. Following the merger, Atari will be a wholly- owned subsidiary of Infogrames Entertainment.
"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."
This transaction comes from a company who from 1999 to 2006 they accumulated a debt of $784 million US dollars in addition to selling off most some studios under it's name. Infogrames is betting its future on a remake of an old Atari classic, Alone in the Dark.
Atari gets something out of this merger, $20 million on loan from 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.
Let's hope they use their new found powers for good, or the company who owns a large piece of video game history will be no more.
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