Infogrames

Infogrames Entertainment SA

File:Infogrames logo.png
Company type	Public Euronext: IFG
Industry	Software & Programming
Founded	June 1983
Headquarters	Lyon , France
Key people	David Gardner, Chairman, CEO, and Chief Creative Officer Phil Harrison, President Thomas Schmider, Chief Operating Officer
Products	Alone in the Dark Unreal Tournament 2003 North & South RollerCoaster Tycoon Civilization III Test Drive
Revenue	EUR €305.3 million (2007)
Net income	EUR €-103.1 million (2007)
Subsidiaries	Atari, Inc, Atari Interactive
Website	www.infogrames.com

Infogrames Entertainment SA (IESA) (Euronext: IFG) is an international holding company headquartered in Villeurbanne, Lyon, France. It owns 51.2 percent of Atari, Inc., headquartered in New York, N.Y., USA, and Atari Europe. It was founded in 1983 by Bruno Bonnell and Christophe Sapet using the proceeds from an introductory computer book. Through its subsidiaries, Infogrames produces, publishes and distributes interactive games for all major video game consoles and computer game platforms.

Early History

The founders wanted to christen the company Zboub Système, but were dissuaded by their legal counsel. According to Bonnell in a TV interview, they then used a mix-and-match computer program to suggest other names, one of which was "Infogramme": a portmanteau of the French words "informatique" (information technology) and "programme" (a computer program). The final choice, "Infogrames", was a slightly modified version of that suggestion, and is Template:PronEng in English.

The company logo is an armadillo (tatou in French), chosen when the company was moved to Villeurbanne. Bonnell commented: "This dinosaur [sic] is our symbol. The armadillo has always survived changes to its environment, from the melting of glaciers to the worst of heat waves."

In the late 1980s Infogrames was noted for its French computer games that often featured original game ideas and occasionally humorous content. They had acquired several licences for popular Franco-Belgian comics, such as Tintin, Asterix and Les Tuniques Bleues.

1996-2002 Growth Through Acquisition

In 1996, Bruno Bonnell's Infogrames embarked on an acquisition campaign that would last seven years and cost more than $500 million; the objective was to become the worlds leading interactive entertainment publisher. While the company's debt increased from $55 million in 1999 to $493 million in 2002, the company's revenue also increased from $246 million to $650 million during the same period.

In 1996 IESA bought Ocean Software for about $100 million, renaming the company as Infogrames UK. In 1997 Philips Media BV was purchased.

In 1998 IESA acquired a majority share of 62.5% in the game distributor OziSoft, which became Infogrames Australia, and in 2002 IESA bought the remaining shares of Infogrames Australia from Sega and other share holders for $3.7 million. In this same year the distributors ABS Multimedia, Arcadia and the Swiss Gamecity GmbH were acquired.

In 1999 IESA bought Gremlin Interactive for $40 million, renaming it to Infogrames Sheffield House but closed it down in 2003. In the same year IESA also bought Accolade for $60 million and Beam Software, later renamed to Infogrames Melbourne House Pty Ltd.

Acquisition of GT Interactive

Then in December 1999, IESA made one of the most expensive acquisitions in the company's history. Infogrames bought 70% of GT Interactive for $135 million, and assumed the new subsidiary's $75 million bank debt. By June 2000 Infogrames had invested another $30 million in GT Interactive . IESA justified the purchase by stating that GT Interactive provided Infogrames with a "distribution network for all of its products in the United States, as well as a catalog of products that includes Driver, Oddworld, Unreal Tournament and Deer Hunter".

Included in the GT Interactive purchase were the game development studios Humongous Entertainment, Legend Entertainment and Reflections Interactive.

GT Interactive became Infogrames, Inc.

In 2000 the developer Paradigm Entertainment was bought for $19.5 million and in-flight games developer Den-o-Tech Int. (DTI) , later renamed to Infogrames DTI, was also acquired for $5.6 million.

Acquisition of Hasbro Interactive

In January 2001, IESA purchased Hasbro Interactive and the handheld game console Game.com from Hasbro for $100 million; with $95 million as 4.5 million common shares of Infogrames and $5 million in cash.

With the acquisition of Hasbro Interactive, which was renamed as Infogrames Interactive, Inc, IESA became the owner of:

• The MicroProse brand and titles, including Civilization, Falcon, and Roller Coaster Tycoon;
• The legendary Atari name and properties, such as Centipede, Missile Command, and Pong.

Also under the terms of the sale agreement, Infogrames gained the exclusive rights to develop and publish games based on Hasbro properties, which included Dungeons and Dragons, Mr Potato Head, My Little Pony and others, for a period of 15 years plus an option for an additional 5 years based on performance.

Eden Games and Shiny Entertainment

In 2002 IESA acquired the remaining 80% of game development studio Eden Games for $4.1 million and Shiny Entertainment for $47 million. With the Shiny Entertainment acquisition, IESA obtained the rights to develop and publish Enter the Matrix which was the first game based on The Matrix films and sold more than 5 million copies.

Atari Group

In October 2001, IESA relaunched the Atari brand when Atari Interactive, Inc., at that time a wholly owned subsidiary of Infogrames Interactive, Inc., released MXrider. On May 7, 2003, IESA officially reorganized its Infogrames Inc. US subsidiary as a separate Nasdaq listed company known as Atari Inc., named its European operations as Atari Europe, renamed Infogrames Interactive, Inc. to Atari Interactive, Inc., (a wholly-owned subsidiary of IESA), rebranded Infogrames Australia Pty Ltd as Atari Australia Pty Ltd , renamed Infogrames Melbourne House Pty Ltd to Atari Melbourne House Pty Ltd , Infogrames UK became Atari UK, while IESA became a holding company.

Atari Inc. is a public company that, as of 2007, has as majority stockholder the company California U.S. Holdings, Inc., a wholly-owned subsidiary of IESA. Atari Inc. licences the Atari trademark from Atari Interactive, Inc., a license which will expire in 2013. Atari Inc. has the rights to publish and sublicense in North America certain intellectual properties either owned or licensed by IESA or its subsidiaries, including Atari Interactive, Inc.

Financial Difficulties

In the fiscal year of 2002 IESA had a net loss of $67 million on revenues of $650 million, and in 2003 the net losses increased to $89 million. In 2006 IESA reported a net loss of $201 million on revenues of $525 million, and debts of around $290 million. From 1999 to 2006 IESA accumulated losses totaling €500 million.

In 2004 Infogrames sold the rights to the Civilization franchise to Take-Two Interactive for $22.3 million and closed down Legend Entertainment studios. In June 2005, Infogrames sold back to Hasbro the digital rights to all Hasbro properties including The Transformers, My Little Pony and Connect Four for $65 million.

On April 2006 Infogrames' founding chairman Bruno Bonnell left the company after 24 years; on the day of the announcement of his departure IESA's shares jumped 24%. After his resignation, Infogrames through the remainder of 2006 sold intellectual properties and some studios in order to raise cash and stave off the threat of bankruptcy.

In May 2006 IESA sold the rights to the games Stuntman to THQ and Timeshift to Saber Interactive. The sales generated $13 million in revenue. THQ also bought developer Paradigm Entertainment from IESA. In July 2006 IESA sold the game developer Reflections Interactive and the rights to the Driver franchise for $21.6 million to Ubisoft. In October, Shiny Entertainment was acquired by Foundation 9 Entertainment for $1.6 million. In November of the same year Atari Melbourne House was sold to Krome Studios and renamed to Krome Studios Melbourne.

In 2007 Infogrames fired the majority of Atari's directors and laid off 20% of its workforce. For the 2006-2007 fiscal year Atari posted a net loss of $70 million.

On March 6, 2008, Infogrames made an offer to Atari Inc. to buy out all remaining public shares for a value of US$1.68 per share or US$11 million total. The offer would make Infogrames sole owner of Atari Inc., making it a privately held company. .

On April 30, 2008, Atari Inc. announced its intentions to accept Infogrames' buyout offer and merge with Infogrames. .

See also

• Crystal Squid Indie game developer started by ex Infogrames employees.
• Moonpod [1] Indie game developer started by ex Infogrames employees.
• Sumo Digital [2] software development company started by ex Infogrames employees.
• History of computer and video game companies
• http://corporate.infogrames.com/IESA/pressreleases_story.html?sid=783

External links

• Atari profile on MobyGames