PARIS (August 29th, 2000) Ubi Soft Entertainment S.A., one of the world leaders
in interactive game publishing, and well-known U.S. based publisher Red Storm
Entertainment, Inc., announced today their definitive agreement for Ubi Soft
Entertainment to acquire Red Storm Entertainment.
Completion of the transaction is subject to customary closing conditions, including
approval of stockholders of both companies and regulatory approvals, including
U.S. antitrust review. Following completion of the transaction Red Storm Entertainment
will be a wholly owned subsidiary of Ubi Soft Entertainment and a Ubi Soft brand,
and it is anticipated that Red Storm will continue to be operated as an independent
It is anticipated also that most of the Red Storm Entertainment staff will
remain intact in North Carolina. Red Storms UK office will join Ubi Soft
in its Wimbledon office. All sales and distribution will be accomplished through
a combined team which will be known as the Ubi Soft sales force.
Red Storm, a strong US brand
Red Storm Entertainment Inc. was founded in November 1996 by best selling author
Tom Clancy and others. The company publishes hits such as Tom Clancys
Rainbow Six and Tom Clancys Rogue Spear. The combined sales of these two
games alone totaled more than 3 million copies globally, attracting both gaming
enthusiasts and the general public.
The quality of Red Storms games have been met with critical acclaim in
the gaming industry, especially the Rainbow Six franchise. Tom Clancys
Rainbow Six has been released for PC CD-ROM, PlayStation®, Sega Dreamcast,
Macintosh, Nintendo®64 and GAME BOY Color game console platforms.
The game was voted 1999 action game of the year by PC Gamer. The sequel, Rogue
Spear, was named 2000 action game of the year by both PC Gamer and Computer
Gaming World and was elected the best multiplayer game of the show at ECTS in
1999. The intense squad-based action of Rainbow Six and Rogue Spear has made
them two of the top multiplayer games played on Microsofts Gaming Zone.
With 1999 net revenues of $52 million, Red Storm is a multiple-media gaming
company that produces, markets and publishes interactive computer games and
other entertainment products. The company has a strong presence in North America
which accounted for 70% of its 1999 sales. Red Storm has approximately 100 employees
As part of the transaction, Tom Clancy entered into a new exclusive, long term
license and endorsement agreement with Red Storm and Ubi Soft for all video
and computer gaming platforms and products.
Leaping together to the next level of growth and profitability
Upon completion, this transaction with Red Storm is expected to be a major step
in UbiSofts expansion program and is in accordance with its selective
acquisition strategy. The strategy was initiated in May of 2000 with the acquisition
of the Sinister Games (US) and Grolier Interactive Ltd. (UK) production studios.
The acquisition of Red Storm strengthens Ubi Softs presence in the United
States. With this acquisition North America will become Ubi Softs first
market for the next fiscal year.
This latest acquisition also is anticipated to bring Ubi Soft one step closer
to its goal of becoming one of the worlds top five publishers. The two
companies complement each other, in terms of products, skills and global presence,
offering the possibility of significant synergies. Moreover, Ubi Soft and Red
Storm share the same approach to bringing quality interactive entertainment
to the general public. The future group is especially keen to position itself
as a leader of the online gaming industry.
The games published by Red Storm will complement Ubi Softs product
range and this acquisition will allow the group to reinforce its existing expertise
in multiplayer action and strategy games. We are convinced that in the years
to come this genre of game will undergo strong growth as witnessed by the dazzling
success of Rainbow Six and Rogue Spear. Red Storm is indisputably the leader
in multiplayer action and strategy games, said Yves Guillemot, President
and CEO, Ubi Soft Entertainment. This agreement also gives Ubi Soft access
to world-renowned licensees such as Tom Clancy, which will be added to our already
strong brand portfolio.
This merger is good for Red Storm as consolidation is a natural and necessary
phenomenon in any fast growing field, said Red Storm Entertainment President
and CEO, Doug Littlejohns. While Red Storm has been remarkably successful
throughout its short life, the acquisition by Ubi Soft, a major player in this
industry, will ensure that together we are capable of leaping to the next level
of growth and profitability.
About Red Storm
Red Storm Entertainment, Inc. is a multiple-media gaming company that produces,
markets and publishes interactive computer games and other entertainment products
in several forms, including CD-ROM and console games, books, board games and
related merchandise. Co-founded by best-selling author Tom Clancy, who has served
as its Chairman of the Board, Red Storm Entertainment is based in Morrisville,
North Carolina, and has its European headquarters in the United Kingdom. For
more information call (919) 460-1776, or visit the companys website at
About Ubi Soft Entertainment
Ubi Soft Entertainment is a global producer, publisher and international distributor
of interactive entertainment products. A leading company in the industry, Ubi
Softs strong and diversified lineup has grown considerably over the past
couple of years. As well as developing original properties, Ubi Soft has also
steadfastly partnered with several high-profile companies and is dedicated to
delivering consumers with quality videogame titles while offering blockbuster
franchises. Founded in 1986, the company has offices in 18 countries including
the United States, Canada, France, Germany and China and sells its products
in a total of 52 countries. For more information about Ubi Soft, please visit