Well that is certainly unexpected news. Atari has entered into an agreement to buy up Night Dive Studios. Night Dive Studios are responsible for the upcoming System Shock remake, Forsaken Remastered, Turok and Turok 2 remasters, Blood Fresh Supply, Quake remaster and many more.
Atari already owned a minority stake in Night Dive and they will now have 100%.
From the press release:
Wade Rosen, Chairman and CEO of Atari, commented: “Night Dive’s proven expertise and successful track record in commercializing retro IP is well-aligned with Atari’s strategy and I am confident that their combined talent, technology and IP portfolio will contribute to Atari’s future success.”
Stephen Kick and Larry Kuperman, principals of Night Dive commented: “Night Dive and Atari have a long history together and we know that Atari shares our passion for retro games and our focus on producing high-quality new and remastered games that do justice to the original IP. As we look to grow our business and expand our capabilities, we could think of no better long-term partner than Atari.”
According to Yahoo Finance, Night Dive Studios reported a revenue of $3 million USD for 2022, and Atari will acquire them for an initial $10 million USD half in cash and half in Atari shares, plus an "earn-out" of up to $10 million USD in cash over the next three years based on Night Dive's performance. This means if Night Dive do well, they'll get more money.
The acquisition is expected to be completed in April 2023.
Article taken from GamingOnLinux.com.
Quoting: F.UltraAlso Wade owns 13% of Night Dive. Come to a deal with them to carve up Atari, perhaps?Quoting: Purple Library GuyQuoting: F.UltraHmmm . . . maybe they said to the banks "Look, we aren't profitable, we have no idea how to start turning a profit, and we already owe you money. Our only chance of paying it back is if we take over someone who can make a profit and use their money. Lend us more so we can do that!"Quoting: Mumrik93Where did Atari get the money to buy them? The Atari VCS was a massive failure on so many levels I have issues believing any bank would be inclined to give them a loan.
They received €12.5M from their share holders last year by way of a rights issue and got a €2.4M loan from Irata LLC, according to their latest report they are still not profitable and had a higher loss in 2022-H2 then 2022-H1
They might go for it--that's more or less the business model of a lot of private equity firms.
I don't think they have talked to any banks, Irata LLC who they loaned money from looks to be a holding company controlled by the CEO of Atari (Wade Rosen) so it looks like he is for some reason trying to take over the company from the other owners. And it took me until right now before I realied that Irata is atarI spelled backwards...
Quoting: SslaxxQuoting: F.UltraAlso Wade owns 13% of Night Dive. Come to a deal with them to carve up Atari, perhaps?Quoting: Purple Library GuyQuoting: F.UltraHmmm . . . maybe they said to the banks "Look, we aren't profitable, we have no idea how to start turning a profit, and we already owe you money. Our only chance of paying it back is if we take over someone who can make a profit and use their money. Lend us more so we can do that!"Quoting: Mumrik93Where did Atari get the money to buy them? The Atari VCS was a massive failure on so many levels I have issues believing any bank would be inclined to give them a loan.
They received €12.5M from their share holders last year by way of a rights issue and got a €2.4M loan from Irata LLC, according to their latest report they are still not profitable and had a higher loss in 2022-H2 then 2022-H1
They might go for it--that's more or less the business model of a lot of private equity firms.
I don't think they have talked to any banks, Irata LLC who they loaned money from looks to be a holding company controlled by the CEO of Atari (Wade Rosen) so it looks like he is for some reason trying to take over the company from the other owners. And it took me until right now before I realied that Irata is atarI spelled backwards...
The plot thickens indeed. Not sure why though, the company does not go well economically.
Viesta2015 Mar 26, 2023
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