Infogrames Buys Atari

Forbes.com reports that Infogrames has purchased the remainder of Atari for a price tag of $11 million, following up on indications they were interested in such a deal (story). Word is that after this is concluded later this year, Atari will be a wholly owned subsidiary of Infogrames:
SAN FRANCISCO (Thomson Financial) - Infogrames Entertainment S.A. has agreed to acquire Atari Inc. for $11 million, the companies said late Wednesday.

Lyon, France-based Infogrames is currently the majority shareholder in Atari, holding 51.4%.

Under the terms of the agreement, Infogrames will acquire the remaining outstanding equity interests of Atari for $1.68 a share, equivalent to a cash payment of $11 million.

Following the merger, Atari will be a wholly-owned subsidiary of Infogrames.

The deal is expected to close in the third calendar quarter of 2008.

In connection with the transaction, Infogrames has committed to lend Atari $20 million, which will be used to fund Atari's operational cash requirements during the period between the date of the merger agreement and its closing.

Shares of Atari, the New York-based video game company, closed at $1.54.
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14.
 
Re: No subject
May 1, 2008, 23:51
Kavika
 
14.
Re: No subject May 1, 2008, 23:51
May 1, 2008, 23:51
 Kavika
 
<i>WTF? I thought Infogrames already bought Atari like 5 years ago and then changed their name to Atari? Did I miss something between then and now?</i>
I worked there during the switch (5-odd years ago), and I thought the same thing. I didn't know much about finance at the time, nor did I care, though. I assume this is somehow different.

This comment was edited on May 2, 00:11.
13.
 
Re: No subject
May 1, 2008, 16:01
13.
Re: No subject May 1, 2008, 16:01
May 1, 2008, 16:01
 
PiTiFUL didn't Bushnell also do the same? Some of their best early games were made by programmers making 20k if I recall correctly. Didn't Jobs leave Atari before Warner, for example?

Like Parallax said there was an issue of credit, when they left to form Activision Warner was already in control and Bushnell had already resigned. I dont think Jobs left over any other issue then he had an idea for a PC and Atari didnt want to run with it, so he quit to pursue that idea.



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12.
 
Re: No subject
May 1, 2008, 08:41
12.
Re: No subject May 1, 2008, 08:41
May 1, 2008, 08:41
 
so what happened to atari after the whole atari 2600 era? was it the same company that did the jaguar or another puppet company under the title?

It was technically still the same company at that point but it was under completely different leadership (the inept Tramiel sons) and most of the original talent was long gone by that point. When Atari really became a different entity altogether was when Hasbro Interactive bought the name and IP rights after the Jaguar flopped. Since then, it's really just been a name that's been applied to poorly run companies (like Infogrames.) Most of the people who ran both Infogrames and the new Atari into the ground are gone now and it seems like Infogrames is trying really hard to make a comeback with some of the talent they've hired like Phil Harrison. I don't know if they'll pull it off before running out of money though.

PiTiFUL didn't Bushnell also do the same? Some of their best early games were made by programmers making 20k if I recall correctly. Didn't Jobs leave Atari before Warner, for example?

When Atari was just starting out, most programmers did only make 20K (which wasn't bad back then don't forget) but when most of their games sold millions, they eventually got huge bonuses. Their big issue ended up not being money so much as being credited on their games which Atari was very much against. Eventually, they started coding some of the first easter eggs to do so.
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11.
 
Re: Lessons not Learned
May 1, 2008, 06:51
11.
Re: Lessons not Learned May 1, 2008, 06:51
May 1, 2008, 06:51
 
PiTiFUL didn't Bushnell also do the same? Some of their best early games were made by programmers making 20k if I recall correctly. Didn't Jobs leave Atari before Warner, for example?

Perpetual debt is slavery.
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10.
 
No subject
May 1, 2008, 06:39
10.
No subject May 1, 2008, 06:39
May 1, 2008, 06:39
 
WTF? I thought Infogrames already bought Atari like 5 years ago and then changed their name to Atari? Did I miss something between then and now?

9.
 
No subject
May 1, 2008, 05:10
9.
No subject May 1, 2008, 05:10
May 1, 2008, 05:10
 
so what happened to atari after the whole atari 2600 era? was it the same company that did the jaguar or another puppet company under the title?

i'll never forget playing pitfall and some submarine game i cant remember the name of. that shit changed me forever.

8.
 
Re: Lessons not Learned
May 1, 2008, 04:50
8.
Re: Lessons not Learned May 1, 2008, 04:50
May 1, 2008, 04:50
 
My own perspective is that Atari sealed its own fate by screwing their employees who made amazing products and were paid next-to-nothing for doing so. This is why so many companies were spawned out of Atari, including Apple and Activision.

I agree, thats one of the things that I mean when I say the suits started doing things their way. They just play the numbers game, maximize profit. It is no longer about content its about moving product and name brand does that better then content. So why pay high salerys when you dont care about the content, you just have to be good enough to get a working product to market. Heh now that they can patch consoles they dont even do that anymore. Its insane when you think about the mentality, getting a game to market to boost a quarterly report supersedes actually finishing the game now. I dont see the console majority putting up with games not working, if they think they can pull the same shit they do on PC users they will be in for another rude awakening. Then again sometimes I think they could take a crap in a box, brand it, and sell millions, then do it again and sell millions more, people will just keep buying it hoping there isnt a pile of crap in the box again.


It is my understanding that Atari was a good place to work until Warner took over.


'Dispatch this is five-oh-four, suspect just ran a red light over'
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7.
 
Re: Lessons not Learned
May 1, 2008, 02:03
7.
Re: Lessons not Learned May 1, 2008, 02:03
May 1, 2008, 02:03
 
PiTiFUL, interesting perspective.

My own perspective is that Atari sealed its own fate by screwing their employees who made amazing products and were paid next-to-nothing for doing so. This is why so many companies were spawned out of Atari, including Apple and Activision.

Greed is what killed Atari.. By 1985 (23 years ago already), the original Atari Bushnell startedwas already gone. Not counting the arcade division, of course.

This comment was edited on May 1, 02:05.
Perpetual debt is slavery.
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6.
 
Re: Lessons not Learned
May 1, 2008, 01:54
6.
Re: Lessons not Learned May 1, 2008, 01:54
May 1, 2008, 01:54
 
That was $11 million for the remaining shares.

This comment was edited on May 1, 01:55.
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5.
 
Re: Lessons not Learned
May 1, 2008, 00:18
5.
Re: Lessons not Learned May 1, 2008, 00:18
May 1, 2008, 00:18
 
I was thinking the same thing, and for $11 Million? I'm not rich, but $11 Million sounds like a steal!

Carmack could've snapped up Atari and stuck the logo on the side of his rocket ship for that price and still come out ahead! Ok, I'll read your link now.

This comment was edited on May 1, 00:18.
4.
 
Lessons not Learned
May 1, 2008, 00:05
4.
Lessons not Learned May 1, 2008, 00:05
May 1, 2008, 00:05
 
Atari, the pioneers of the video game industry, a brand name known worldwide, king of the hill... hell they owned the hill, now just a small time player barely worth notice. What happened? got taken over by the suits and they started doing things their way. Sure see alot of that going on these days, good companys making good products, taken over by suits, they start doing things their way, public wont put up with it forever, and you too will go the way of the dodo bird.

Heres an interesting read, an interview with the founder of Atari.

http://www.spiegel.de/international/0,1518,512798,00.html



'Dispatch this is five-oh-four, suspect just ran a red light over'
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3.
 
Re: new name?
Apr 30, 2008, 23:49
Prez
 
3.
Re: new name? Apr 30, 2008, 23:49
Apr 30, 2008, 23:49
 Prez
 
For Pete's sake, just let the Atari name die already. Or can we expect re-releases of E.T. and Raiders of the Lost Ark?


This comment was edited on Apr 30, 23:49.
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2.
 
Re: new name?
Apr 30, 2008, 21:52
2.
Re: new name? Apr 30, 2008, 21:52
Apr 30, 2008, 21:52
 
Chowder. Say it Frenchie!

1.
 
new name?
Apr 30, 2008, 21:45
Kxmode
 
1.
new name? Apr 30, 2008, 21:45
Apr 30, 2008, 21:45
 Kxmode
 
Atarigrames?
Infotari?
IE (acronym of Inforgrames Entertainment... sounds like EA)

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