Infogrames has also agreed to spot Atari $20 million to keep them operationally afloat. You know what that means, Atari employees? Bagel Mondays are back!
Full release after this.
Infogrames Entertainment S.A. and Atari, Inc. Announce Agreement to Merge
Infogrames to Acquire Outstanding Shares of Atari, Inc. for Cash
LYON, France and NEW YORK, April 30 /PRNewswire-FirstCall/ —Infogrames Entertainment S.A. (Euronext - ISIN: FR-0010478248) (”Infogrames” or “the Group”) and Atari, Inc. (Nasdaq: ATAR) (”Atari”) today announced that they have reached a definitive agreement to merge.
The agreement:
— brings to a close a period of financial underperformance for Atari;
— strengthens Atari under Infogrames’ new management team;
— delivers a platform for future growth in the US; and
— offers Atari shareholders an all cash exit.
Under the terms of the merger agreement, Infogrames will acquire the remaining outstanding equity interests of Atari (other than shares of common stock held by Infogrames or its affiliates, which would be cancelled) for US$1.68 per share, equivalent to a cash payment of approximately US$11 million. Infogrames is currently the majority shareholder in Atari holding approximately 51.4%. Following the merger, Atari will be a wholly- owned subsidiary of Infogrames. The merger will be funded by Infogrames from existing cash resources. The transaction is not subject to any financing conditions and is expected to close in the third calendar quarter of 2008.
This agreement is an essential and positive development for Infogrames and its shareholders. It brings Atari fully under the control of Infogrames, delivering a platform for future growth in the US. This step closely follows a series of recent major restructuring actions implemented in an effort to reposition Atari, streamline its corporate structure and reduce its annualized costs, including costs related to being a US public company.
The Board of Infogrames believes that full ownership of a restructured Atari is an important step for the Group, leading to a simplified operating structure that will deliver greater efficiency, provide the Group with greater opportunities to expand its US distribution capabilities and strengthen its platform for its global online initiatives.
Commenting on today’s announcement, David Gardner, CEO, Infogrames, said:
“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.”
The management of Atari, Inc., led by recently appointed President and CEO, Jim Wilson, will join the Group upon the closing of the transaction and remain focused on growing the key North American gaming market.
Mr. Wilson said: “By joining Infogrames, we will have the opportunity to further transform Atari. As part of this newly integrated company, we will be better able to streamline operations and have a stronger platform for growth in North America.”
The transaction was negotiated and approved by the Special Committee of the Board of Directors of Atari, consisting entirely of directors who are independent of Infogrames. In approving and recommending the merger transaction, the Special Committee considered, among other things, the terms of the merger agreement, which permits the Special Committee to terminate the agreement under certain circumstances, Atari’s financial position and results of operations, general market and industry conditions, the risks of implementing Atari’s business plan, Atari’s limited liquidity and the limited range of options available to Atari. The Special Committee also considered the effects of Infogrames’ controlling interest, the risk that the transaction will not be completed, the premium to Atari’s share price 30 days prior to the date of Infogrames’ offer, and the willingness of Infogrames to extend a loan of up to $20 million to Atari to cover expected capital requirements.
The transaction is subject to a number of customary conditions, including the approval of the holders of a majority of outstanding shares. Atari expects to call a special meeting of shareholders to consider the merger in the third quarter of calendar 2008. Since Infogrames controls a majority of Atari’s outstanding shares, Infogrames has the power to approve the transaction without the approval of Atari’s other shareholders.
In connection with the transaction, Infogrames has committed to lend Atari US$20 million, subject to the terms and conditions of the credit agreement between Atari and 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.
Molyneux, Molyneux, Molyneux! That’s all we hear PETER MOLYNEUX!! In the famed game designer’s defence, he tells The Guardian:
Some of the more eagle-eyed/paranoid dwellers from the darkest recesses of the internet discovered a few days back that when GameSpot’s GTA IV score was first spotted, it was given a score of 9.5, then quickly “changed” to a perfect 10. I don’t need to tell you there was much tin-foil-hattery surrounding the possible causes for this. Well, according to GameSpot’s EIC Ricardo Torres, it was all down to a bug:
Can’t say we didn’t see 
The analysts at DFC Intelligence have gazed into the crystal ball to receive word from the future of the European console war and the news is somewhat of a downer for Sony. But it’s far worse for Microsoft. A new report calls for “strong” sales of the PlayStation 3 but that Sony should expect to lose a “big chunk” of the PS2 install base. Wii is expected to dominate, but won’t move software like the PS3 may.
Assault Heroes remains one of the best arcade shooter experiences on Xbox Live Arcade today - exactly the sort of game I used to play in arcades with my friends back in the day. Now Wanako Studios is readying Assault Heroes 2 for release next month, promising all of the action of the original and more. The new game adds hijackable enemy vehicles entering the mix, as well as taking the firefight into outer space for the first time. The game is due out on XBLA May 14th for the standard fee of 800 Microsoft points. In honor of the release date announcement, here’s enough screens to create your own little Assault Heroes 2 flipbook.