Infogrames/Atari Dumps Distribution Biz
French publisher Infogrames, which owns Atari, is getting out of the distribution business. Infogrames is selling its 66% ownership of Distribution Partners to Namco Bandai, effectively eliminating its sales/marketing/retail business. Namco already owns the other third of Distribution Partners, which began as a joint venture between the two companies and is valued at €60 million.
Infogrames has billed the decision as an acceleration of its transformation "into a content-led online game company" and as such will invest the profits from the sale in both internal and external game development. The sale also reduces working capital requirements while the remainder of a five-year deal with DP means the sale won't actually interfere with Infogrames' access to DP's distribution network, according to Infogrames CEO David Gardner:
"The exercise of the put option will now allow Atari to focus its financial resources and creative energy exclusively on developing and publishing online-enabled games, shifting our operations towards servicing recurring revenues and a higher-margin online business model while still benefiting from access to Distribution Partners strong international distribution network."
Infogrames/Atari Sells Off Distribution Business [Gamasutra]
tiny dancer
Posted to Miscellany on 26 March 2009
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Other stuff like this: atari, distribution partners, infogrames, namco bandai
So is it now going to be Namco-Bandai-Atari? lol