Atari Sells Humongous to Infrogrames
Posted on September 30, 2005Atari, Inc. has announced the sale of its Humongous Entertainment studio to Infogrames Entertainment SA ("IESA") for approximately $10.3 million. The Humongous assets consist primarily of intellectual property, existing inventory and license rights. Additionally, Atari has been granted 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 and Chief Creative Officer 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 hard-core 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."