In its continuing efforts to streamline its operations, video game giant Atari has sold development studio Humongous to France’s Infogrames Entertainment SA (IESA), Atari’s majority stockholder. Atari will get $10.3 million out of the deal, as well as exclusive distribution rights for Humongous products in the U.S., Canada and Mexico through March 31, 2006.
Humongous co-developed Atari’s Backyard sports series for kids, including such games as Backyard Baseball, Backyard Basketball and Backyard Football. The company’s assets consist primarily of intellectual property, existing inventory and license rights. Approximately $2 million of the purchase price represents pre-payment of certain future costs Atari will incur related to platform royalty advances, manufacturing costs and milestone payments.
"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,” says Bruno Bonnell, chairman, CEO and chief creative officer for Atari.
New York-based Atari Inc. is one of the largest third-party publishers of interactive entertainment software such the hit franchises as DRIVER, The Matrix, Stuntman, Test Drive and children’s properties such as Blue’s Clues, Dora the Explorer and Dragon Ball Z.