Deal going down in third quarter 2008Infogrames Entertainment, the French company who own a 51.2 percent share in Atari Inc, has yesterday agreed to buy the remaining stake in the company.
The deal will make the New York based video games company a wholly-owned subsidiary of Infogrames.
According to Forbes.com, "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.
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."
Ex Sony big-wig Phil Harrison, who is now the President of Infogrames said, "The Atari opportunity, is the best opportunity that exists in the industry today to redefine, refocus and re-energize an incredible brand."
Completion of the deal is expected to go ahead in the third quarter, 2008.
Source :: Forbes