atari video game systems
On December 6th 2000,
'Infogrames' purchased 100% of the common stock of 'Hasbro Interactive'
and 'Games.com' for $100,000,000 - comprised of $95,000,000 in 'Infogrames
Entertainment SA' securities (approximately 4.5 million common shares) and
$5,000,000 in cash.
the complete announcement here:
INFOGRAMES ENTERTAINMENT TO ACQUIRE HASBRO INTERACTIVE AND GAMES.COM
Will Gain Rights to Develop and Publish Interactive Games Based on Current
and Future Hasbro Properties Through Long-Term Licensing Agreement
LYON, FRANCE, PAWTUCKET, RI, December 6, 2000 -- Infogrames Entertainment
SA (Euronext 5257) and Hasbro, Inc. (NYSE:HAS) jointly announced today
that they have entered into a strategic agreement, creating one of the
foremost powerhouses in the mass market digital interactive entertainment
world. The agreement is comprised of three main elements, including the
Infogrames acquisition of Hasbro Interactive; a long-term licensing
agreement giving Infogrames exclusive rights to develop and publish
digital interactive games based on current and future Hasbro properties on
all existing and future digital interactive formats; and the acquisition
Infogrames will purchase 100% of the common stock of Hasbro Interactive
and Games.com for $100 million - comprised of $95 million in Infogrames
Entertainment SA securities (approximately 4.5 million common shares) and
$5 million in cash. In addition, Hasbro will receive an annual guarantee
from Infogrames based on sales generated from the licensing agreement. The
agreements are subject to the approval of the shareholders of Infogrames,
regulatory approval and other customary closing conditions. The companies
expect the deal to close early in the first calendar quarter of 2001.
'Infogrames and Hasbro are truly poised to become worldwide leaders in the
digital entertainment market,' said Bruno Bonnell, Chairman and CEO of
Infogrames. 'Infogrames' external growth strategy consists of three
requirements: a willingness of the prospective partner's management to
share our strategic vision, a complementary set of skills and products,
and finally, value for our shareholders. The Hasbro Interactive and
Games.com acquisition meets these criteria,' said Mr. Bonnell.
'Infogrames' access to Hasbro's long list of well-known properties fits
perfectly with our long-term publishing strategy to become the leader in
family entertainment. The terms are beneficial for Infogrames
Entertainment, since they have no direct impact on the company's future
'This arrangement with Infogrames is a very positive one for Hasbro on
many different levels,' said Alan Hassenfeld, Hasbro's Chairman and CEO.
'First, we have aligned ourselves with a premier player in the interactive
arena. Second, this strategic agreement with Infogrames meshes with our
strategy of reducing costs as we focus on consistently delivering profits
going forward. Third, this arrangement will provide a continuing revenue
stream to Hasbro over the long-term through Infogrames' expertise in
leveraging our current and future properties.'
The agreement is comprised of three main elements:
Infogrames Entertainment's acquisition of 100% of the common stock of
Hasbro Interactive, a subsidiary of Hasbro, Inc.
The acquisition gives Infogrames a catalog of titles based on well-known
The MICROPROSE brand and titles, including the international hit
CIVILIZATION, FALCON, and ROLLER COASTER TYCOON, the number one selling PC
game in the US according to PC DATA'S latest report.
The legendary ATARI name and properties, such as CENTIPEDE, MISSILE
COMMAND, and the historic PONG, which pioneered the video game revolution.
The exclusive rights to develop and publish interactive games based on
current and future Hasbro, Inc. properties, including:
The interactive versions of popular Hasbro board games, which include
MONOPOLY, SCRABBLE1, CLUE, RISK, and BOGGLE.
The interactive versions of children's games and toys, such as MR.
POTATO HEAD, TONKA TRUCKS, ACTION MAN, MY LITTLE PONY, and CANDYLAND.
The massively multi-player game DUNGEONS AND DRAGONS.
Under the terms of the agreement, Infogrames gains the rights through a
licensing agreement with Hasbro to develop games based on Hasbro
properties for a period of 15 years plus an option for an additional 5
years based on performance, on all existing and future digital interactive
formats. Terms of the licensing agreement are consistent with other
traditional Infogrames' Entertainment licensing agreements.
These formats include: current and next-generation video game consoles
such as Sony PlayStation2, Microsoft Xbox, Sega Dreamcast, and Nintendo
GameBoy Advance and GameCube, personal computers, broadband networks,
interactive television, cellular telephones, arcade, and hand-held devices
(PDAs). In keeping with its global multi-platform strategy, Infogrames
will leverage Hasbro's unmatched content by developing titles on a variety
of platforms that appeal to a global market.
These Hasbro Interactive brands, together with Hasbro's owned brands, make
up a catalog of more than 200 family titles that are being managed by a
team of mass market product experts who have helped Hasbro Interactive
succeed in becoming the third largest PC publisher in the U.S.
Additionally, approximately 60 titles are currently in development,
including PlayStation2 and Xbox versions of franchises from HASBRO,
MICROPROSE and ATARI: ZOO TYCOON, MONOPOLY, MICRO MACHINES, TWISTER,
CIRCUS MAXIMUS, CIVILIZATION, and GRAND PRIX 4.
Infogrames will also seek out additional partnership opportunities with
telecommunications providers, media companies and hardware manufacturers
to bring these franchises to other platforms.
The long term licensing agreement combines Hasbro's expertise in
developing successful mass-market properties and Infogrames' expertise in
bringing top properties to the digital interactive market.
Hasbro's catalog of games and toys will be strengthened by their digital
interactive counterparts, published and globally distributed by
Infogrames. In addition, Infogrames' titles based on Hasbro properties
will benefit from Hasbro's powerful marketing programs for their games and
Acquisition of Games.com
As part of the agreement, Infogrames acquires Games.com, an online games
portal launching in early 2001. Games.com has already attracted over four
million visitors to its site, with more than one million people having
already registered to receive information about its launch.
At its launch, Games.com will allow visitors to play more than 30 online
games based on Hasbro properties, some of which include MONOPOLY, CLUE,
SCRABBLE1, ASTEROIDS, and RISK. In addition, visitors to the site can find
news, information, tips and hints about games featured on Games.com.
Visitors to the site will also have the ability to chat with other players
and participate in tournaments based on widely recognized games from the
Hasbro catalog. Games.com's revenue strategy includes e-commerce,
sponsorships and individual subscriptions. Infogrames plans to extend
Games.com to broadband users in the future.
JP Morgan & Lazard Freres advised Infogrames and Salomon Smith Barney
advised Hasbro in this financial transaction.
For additional information, Infogrames has posted a detailed presentation
on today's announcement at www.infogrames.com and
1 In the United States only.
Infogrames Entertainment SA (Euronext 5257) is a worldwide leader in the
interactive entertainment software industry.
Headquartered in France, the company publishes and distributes
award-winning computer and video games for the PlayStation® game console,
PlayStation® 2 computer entertainment system, MicrosoftÒ Xbox, Nintendo®
64, Nintendo® Game Boy® Color, Sega® Dreamcast™, Macintosh®, and personal
computer platforms, as well as interactive digital television platforms,
mobile smart devices (WAP, HDML) and in-flight entertainment systems.
Founded in 1983 by chairman and CEO Bruno Bonnell, Infogrames has
published many award-winning franchises in its 17-year history, such as
Alone In The Dark™, Test Drive®, Driver™, Deer HunterÒ, Oddworld™,
UnrealÔ, and V-Rally™. The company is also known for its best-selling and
award-winning line of children's entertainment software from Humongous
Entertainment® starring Putt-Putt®, Freddi Fish™, Pajama Sam® and SPY
Fox™, as well as its successful Macintosh publishing label, Macsoft, the
number one publisher of Macintosh entertainment software. In addition,
Infogrames has a number of key strategic licenses including Warner Bros.
Looney Tunes™, Nickelodeon's Blue's Clues™, AM General Hummer®, and
Harley-Davidson®. Infogrames distributes its games in approximately 60
different countries worldwide. For more information, visit Infogrames' US
Web site at www.us.infogrames.com.
Based in New York, NY, Infogrames, Inc. (Nasdaq: IFGM) is a majority-owned
subsidiary of Infogrames Entertainment SA and serves as the headquarters
for the company's operations in North America.
Hasbro is a worldwide leader in children's and family leisure time
entertainment products and services, including the design, manufacture and
marketing of games and toys ranging from traditional to high-tech. Both
internationally and in the U.S., its PLAYSKOOL, TONKA, SUPER SOAKER,
MILTON BRADLEY, PARKER BROTHERS, TIGER and WIZARDS OF THE COAST brands and
products provide the highest quality and most recognizable play
experiences in the world.
SAFE HARBOR STATEMENT
Certain statements contained in this release contain 'forward-looking
statements' within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements may be identified by the use of
forward-looking words or phrases such as 'anticipate', 'believe', 'could',
'expect', 'intend', 'may', 'planned', 'potential', 'should', 'will' and
'would'. Such forward-looking statements are inherently subject to known
and unknown risks and uncertainties. Actual actions or results may differ
materially from those expected or anticipated in the forward-looking
statements. Specific factors that might cause such a difference include,
but are not limited to, third party actions or approvals that could delay
or increase the cost of implementation of the strategic agreement or alter
actions and reduce actual results; the risk that anticipated benefits of
the strategic agreement may not occur or be delayed or reduced in their
realization; and with respect to the online game site initiative,
technical difficulties in adapting games to online format and establishing
the online game site that could delay or increase the cost of the site
becoming operational; the acceptance by consumers of the games and other
products and services to be offered at the site; competition from other
online game sites and other game playing formats; and the fact online game
revenues may not be sufficient to cover the significant advertising and
other expenditures required or the support, service and product
enhancement demands of online users. There is no undertaking of an
obligation to make any revisions to the forward-looking statements
contained in this release or to update them to reflect events or
circumstances occurring after the date of this release.
Erica Krishnamurthy/Tom Richardson (Press Relations) 408-985-1700
John Menditto (Investor Relations) 212-726-4294
Hasbro: Wayne Charness (Press Relations) 401-727-5983 email@example.com
Karen Warren (Investor Relations) 401-727-5401