Infogrames to Complete Takeover of Atari

By Geoff Duncan May 1, 2008

France’s Infogrames Entertainment has announced it plans to acquire the remainder of venerable video game developer Atari for just $11 million. Infogrames already owns just over 51 percent of Atari’s stock, and has been publishing games under the Atari name since 2001. The takeover will yield $1.68 per share to Atari shareholders, assuming they approve the deal.

"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," said Infogrames CEO David Gardner in a statement.

Although Atari was a dominant player in the arcade and home video game markets in the 1970s and early ’80s, competition from Nintendo and later Sega knocked the company back on its heels, and it never truly recovered. The company currently produces games like Alone in the Dark and has a major franchise deal with games related to the animated series Dragonball Z, and develops to a variety of platforms, including the Nintendo GameBoy Advance and SD, Sony PSP, the Xbox 360, as well as Sony’s PS2 and PS3. However, almost a year ago Atari announced a million-dollar plan to restructure the company, which included laying off about 20 percent of its employees.

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Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…

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