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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