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Atari US Operation Declares Chapter 11 Bankruptcy

by Macker ( 2 Comments › )
Filed under Business, Entertainment, Headlines, Regulation at January 21st, 2013 - 1:43 pm

My goodness, this brings back memories: Space Invaders, Asteroids, Centipede, Missile Command, etc., and so on and so forth, ad nauseum. Perhaps this action can restart this company, but considering the economic environment these days, one has to wonder. From the LA Times:

There is evidence that the U.S. operation, which after the sale of other assets now makes up the bulk of Atari S.A.’s business, has been improving. The corporate parent has been profitable for the last two fiscal years, save for the effect of a money-losing French subsidiary, Eden Games, that has been up for sale. Before that, neither Atari S.A. nor Infogrames had been profitable for about a decade.
Still, its profits have been small ($11 million and $4 million, respectively, for the last two fiscal years) and revenue plummeted 34% in fiscal 2012 and 43% in fiscal 2011.
But the company’s growth potential has been hampered by its near total reliance on London financial company BlueBay Asset Management for cash. A $28-million credit facility with BlueBay lapsed Dec. 31, leaving Atari without the resources to release games currently in the works, including a real-money gambling title titled “Atari Casino.”
Efforts to recapitalize the corporation have been unsuccessful, in part because of its complex structure as essentially an American business with a French public stock listing.
Shares in Atari S.A. have dropped in value from more than 11 Euros in 2008 to less than 1 Euro recently.

Of course it remains to be seen whether Atari itself can survive on its own, shorn from its French parental unit.



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2 Responses to “Atari US Operation Declares Chapter 11 Bankruptcy”
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  1. Da_Beerfreak
    1 | January 21, 2013 5:03 pm

    My first tech job was working for the company that supplied the CRT assemblies to Atari for the arcade version of Pong. Damn, that was a long time ago…

  2. 2 | January 21, 2013 11:01 pm

    miner 2049er and MULE, those were my favorite atari games for the 800XL. Of course, that system and those games are gone forever, whether or not Atari survives.

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