Press release
Atari, Inc. a leader in interactive entertainment, today announced that it has entered into an agreement with Ubisoft for the divestiture of the Driver franchise and most of the assets of the Reflections game development studio. The sale of the Driver intellectual property and the Reflections assets for $24 million is the latest initiative in the Company's previously stated plans to refocus its portfolio of franchises as well as streamlining the Company's cost structure.
"The Atari name has been synonymous with innovation since the beginning of interactive entertainment," said Atari, Inc. Chief Executive Officer Bruno Bonnell. "Over the years, we have created and nurtured some of the industry's most successful franchises and we will continue to do so. We are focusing the energy of the Company on a select number of franchises in order to optimize their impact among consumers and increase shareholder value. In the driving category, we consider Test Drive our key franchise which will require more resources and attention to build it as a landmark of its genre."
Atari will maintain sell-off rights for a three month period for all Driver products except Driver: Parallel Lines, which the company retains until end of calendar 2006. Specific financial terms of the agreement were not disclosed and the agreement between the two companies is subject to normal closing conditions. The Company anticipates closing of the transaction to be completed prior to the end of its fiscal second quarter ending September 30, 2006.
