Atari Sells off Humongous Ent. for $10.3 Million
Atari Inc., a leader in interactive entertainment, has sold its Humongous Entertainment studio to Infogrames Ent. SA, the company's majority stockholder, for approximately $10.3 million.
About $2 million of the purchase price represents pre-payment of future costs Atari will incur related to platform royalty advances, manufacturing costs and milestone payments. Atari will have exclusive distribution rights for Humongous products in the U.S., Canada and Mexico through at least March 31, 2006.
"We continue to execute our previously articulated strategic initiatives and strengthen Atari's financial position moving forward," stated Bruno Bonnell, chairman/ceo/cco of Atari. "As we streamline the operations of the company and focus on cost controls, we remain committed to developing unique high-quality titles that appeal to both mass-consumers as well as hardcore gamers. This transaction substantially contributes to our resources for the launch of our largest titles in the holiday season and further enhances our capacity to develop new titles, ultimately enhancing shareholder value."
Humongous Ent., a development studio based in Bothell, Washington, has a long history of creating high-quality, hand-animated computer games, such as PUTT-PUTT, FREDDI FISH, PAJAMA SAM and SPY FOX.
New York-based Atari Inc. (www.atari.com) develops interactive games for all platforms and is one of the largest third-party publishers of interactive entertainment software in the U.S. Atari Inc. is a majority-owned subsidiary of France-based Infogrames Ent. SA, the largest interactive games publisher in Europe.
About $2 million of the purchase price represents pre-payment of future costs Atari will incur related to platform royalty advances, manufacturing costs and milestone payments. Atari will have exclusive distribution rights for Humongous products in the U.S., Canada and Mexico through at least March 31, 2006.
"We continue to execute our previously articulated strategic initiatives and strengthen Atari's financial position moving forward," stated Bruno Bonnell, chairman/ceo/cco of Atari. "As we streamline the operations of the company and focus on cost controls, we remain committed to developing unique high-quality titles that appeal to both mass-consumers as well as hardcore gamers. This transaction substantially contributes to our resources for the launch of our largest titles in the holiday season and further enhances our capacity to develop new titles, ultimately enhancing shareholder value."
Humongous Ent., a development studio based in Bothell, Washington, has a long history of creating high-quality, hand-animated computer games, such as PUTT-PUTT, FREDDI FISH, PAJAMA SAM and SPY FOX.
New York-based Atari Inc. (www.atari.com) develops interactive games for all platforms and is one of the largest third-party publishers of interactive entertainment software in the U.S. Atari Inc. is a majority-owned subsidiary of France-based Infogrames Ent. SA, the largest interactive games publisher in Europe.
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