Atari, Inc. to Realign Cost Structure - - Atari, Inc. to Grant the Test Drive License to Infogrames for Future Development
Atari, Inc. (Nasdaq: ATAR), an interactive entertainment company, today announced the company will re-focus its operations on publishing and distribution in North America, completing its withdrawal from the production business. Atari also announced that it has licensed its Test Drive franchise to Infogrames Entertainment, S.A. ("IESA") under an agreement which includes a $5 million advance royalty.
Restructuring Initiative
Atari has determined to focus its resources on the publishing and distribution segments of the rapidly growing video game business. The Company's operations will involve title acquisition, sales and marketing, and physical distribution of products from IESA, its 51% shareholder, and other selected partners.
In line with that goal, Atari has agreed in principle with IESA to terminate its Production Services Agreement in the near future. As a result, Atari will no longer provide production and quality assurances services to IESA. Rather, Atari plans to transfer certain employees and contract other staff on a project basis for a limited period of time.
As part of the company restructuring, Atari, Inc. will reduce its current workforce in order to re-align the Company's cost structure with its on-going business base.
Atari Announces Departure of Chief Executive Officer
Atari, Inc. (Nasdaq: ATAR), an interactive entertainment company, today announced that David Pierce has resigned his position as Atari's Chief Executive Officer under the terms of his employment agreement. Curtis G. Solsvig III, Chief Restructuring Officer, will assume Mr. Pierce's responsibilities on an interim basis. An executive search has been initiated to find Mr. Pierce's successor.
"We appreciate David's support and commitment through a difficult period in the Company's history and wish him well in his future endeavors." said Gene Davis, Chairman of the Board of Directors.
