October 31, 2023 [crocon media – msch] In a strategic move to bolster its retro gaming offerings, Atari, a global leader in interactive entertainment, has announced its acquisition of Digital Eclipse Entertainment Partners Co. This acquisition marks Atari’s continued commitment to its retro-focused growth strategy, following its earlier acquisition of Nightdive Studios in May 2023.
Digital Eclipse, based in Emeryville, California, has been at the forefront of the digital restoration of classic video games since its inception in 1992. The studio’s dedication to preserving gaming’s heritage is evident in its archival releases and interactive documentaries. Some of its recent notable projects include the “Atari 50: The Anniversary Collection,” which garnered significant acclaim and was dubbed the “new gold standard” for game compilations.
The acquisition will not only enhance Atari’s internal development capabilities but also leverage Digital Eclipse’s proprietary technology and industry-leading experience. This collaboration promises to bring fans exciting new projects that celebrate and preserve gaming history.
In terms of financial details, the purchase price for Digital Eclipse is set at an initial consideration of US$6.5 million, with US$4.0 million in cash and US$2.5 million in newly issued Atari ordinary shares. An additional earn-out of up to $13.5 million, based on Digital Eclipse’s future performance, will be payable in cash over the next decade.
A significant highlight of this deal is the issuance of 20,165,794 new Atari shares. Post-acquisition, Digital Eclipse shareholders will hold approximately 4.6% of Atari’s share capital. The majority of these shareholders have agreed to a 1-year lock-up on their Atari shares, ensuring stability and confidence in the merger.
While the stock market’s initial reaction saw a slight dip in Atari’s stock by around 5%, the long-term prospects look promising. The combined expertise of Atari and Digital Eclipse is expected to usher in a new era of retro gaming, catering to both nostalgic gamers and a new generation eager to experience the classics.
Read the press release : https://www.globenewswire.com/news-release/2023/10/31/2769851/0/en/Atari-enters-into-an-agreement-to-acquire-Digital-Eclipse.html
Editorial Disclosure: The editorial content on this page is not provided by any entity mentioned herein. Opinions expressed here are the author’s alone, and have not been reviewed, approved or otherwise endorsed by any of these entities.
Disclaimer: The author(s) of this article may or may not hold a position in the mentioned stock. None of the companies discussed in the above article have paid for this content. The information provided in this article should not be considered financial advice, and readers should always do their own research before making investment decisions. However, as with any investment, there are potential risks and uncertainties to consider, such as potential regulatory changes, market volatility, and competition from other players in the industry. It is important for investors to carefully monitor this stock and its performance over time to make informed decisions about their investments. crocon media is a project of The SiLLC Assembly. This site is for entertainment purposes only. The owner of this site is not an investment advisor, financial planner, nor legal or tax professional and articles here are of an opinion and general nature and should not be relied upon for individual circumstances. This article is for informational purposes only and should not be considered financial advice. Investing in stocks involves risk, and readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
