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On December 6th 2000, "Infogrames" purchased 100% of the common stock of "Hasbro Interactive" and "Games.com" for $100,000,000 - comprised of $95,000,000 in "Infogrames Entertainment SA" securities (approximately 4.5 million common shares) and $5,000,000 in cash.
Read the complete announcement here:
INFOGRAMES ENTERTAINMENT TO ACQUIRE HASBRO INTERACTIVE AND GAMES.COM
Will Gain Rights to Develop and Publish Interactive Games Based on Current and
Future Hasbro Properties Through Long-Term Licensing Agreement
LYON, FRANCE, PAWTUCKET, RI, December 6, 2000 -- Infogrames Entertainment SA (Euronext
5257) and Hasbro, Inc. (NYSE:HAS) jointly announced today that they have entered
into a strategic agreement, creating one of the foremost powerhouses in the mass
market digital interactive entertainment world. The agreement is comprised of
three main elements, including the Infogrames acquisition of Hasbro Interactive;
a long-term licensing agreement giving Infogrames exclusive rights to develop
and publish digital interactive games based on current and future Hasbro
properties on all existing and future digital interactive formats; and the
acquisition of Games.com.
Infogrames will purchase 100% of the common stock of Hasbro Interactive and
Games.com for $100 million - comprised of $95 million in Infogrames
Entertainment SA securities (approximately 4.5 million common shares) and $5
million in cash. In addition, Hasbro will receive an annual guarantee from
Infogrames based on sales generated from the licensing agreement. The agreements
are subject to the approval of the shareholders of Infogrames, regulatory
approval and other customary closing conditions. The companies expect the deal
to close early in the first calendar quarter of 2001.
"Infogrames and Hasbro are truly poised to become worldwide leaders in the
digital entertainment market," said Bruno Bonnell, Chairman and CEO of
Infogrames. "Infogrames' external growth strategy consists of three
requirements: a willingness of the prospective partner's management to share our
strategic vision, a complementary set of skills and products, and finally, value
for our shareholders. The Hasbro Interactive and Games.com acquisition meets
these criteria," said Mr. Bonnell. "Infogrames' access to Hasbro's
long list of well-known properties fits perfectly with our long-term publishing
strategy to become the leader in family entertainment. The terms are beneficial
for Infogrames Entertainment, since they have no direct impact on the company's
future investment capacity."
"This arrangement with Infogrames is a very positive one for Hasbro on many
different levels," said Alan Hassenfeld, Hasbro's Chairman and CEO.
"First, we have aligned ourselves with a premier player in the interactive
arena. Second, this strategic agreement with Infogrames meshes with our strategy
of reducing costs as we focus on consistently delivering profits going forward.
Third, this arrangement will provide a continuing revenue stream to Hasbro over
the long-term through Infogrames' expertise in leveraging our current and future
properties."
The agreement is comprised of three main elements:
Infogrames Entertainment's acquisition of 100% of the common stock of Hasbro
Interactive, a subsidiary of Hasbro, Inc.
The acquisition gives Infogrames a catalog of titles based on well-known
properties, including:
· The MICROPROSE brand and titles, including the international hit CIVILIZATION,
FALCON, and ROLLER COASTER TYCOON, the number one selling PC game in the US
according to PC DATA'S latest report.
· The legendary ATARI name and properties, such as CENTIPEDE, MISSILE COMMAND,
and the historic PONG, which pioneered the video game revolution.
The exclusive rights to develop and publish interactive games based on current
and future Hasbro, Inc. properties, including:
· The interactive versions of popular Hasbro board games, which include
MONOPOLY, SCRABBLE1, CLUE, RISK, and BOGGLE.
· The interactive versions of children's games and toys, such as MR. POTATO
HEAD, TONKA TRUCKS, ACTION MAN, MY LITTLE PONY, and CANDYLAND.
· The massively multi-player game DUNGEONS AND DRAGONS.
Under the terms of the agreement, Infogrames gains the rights through a
licensing agreement with Hasbro to develop games based on Hasbro properties for
a period of 15 years plus an option for an additional 5 years based on
performance, on all existing and future digital interactive formats. Terms of
the licensing agreement are consistent with other traditional Infogrames'
Entertainment licensing agreements.
These formats include: current and next-generation video game consoles such as
Sony PlayStation2, Microsoft Xbox, Sega Dreamcast, and Nintendo GameBoy Advance
and GameCube, personal computers, broadband networks, interactive television,
cellular telephones, arcade, and hand-held devices (PDAs). In keeping with its
global multi-platform strategy, Infogrames will leverage Hasbro's unmatched
content by developing titles on a variety of platforms that appeal to a global
market.
These Hasbro Interactive brands, together with Hasbro's owned brands, make up a
catalog of more than 200 family titles that are being managed by a team of mass
market product experts who have helped Hasbro Interactive succeed in becoming
the third largest PC publisher in the U.S.
Additionally, approximately 60 titles are currently in development, including
PlayStation2 and Xbox versions of franchises from HASBRO, MICROPROSE and ATARI:
ZOO TYCOON, MONOPOLY, MICRO MACHINES, TWISTER, CIRCUS MAXIMUS, CIVILIZATION, and
GRAND PRIX 4.
Infogrames will also seek out additional partnership opportunities with
telecommunications providers, media companies and hardware manufacturers to
bring these franchises to other platforms.
The long term licensing agreement combines Hasbro's expertise in developing
successful mass-market properties and Infogrames' expertise in bringing top
properties to the digital interactive market.
Hasbro's catalog of games and toys will be strengthened by their digital
interactive counterparts, published and globally distributed by Infogrames. In
addition, Infogrames' titles based on Hasbro properties will benefit from
Hasbro's powerful marketing programs for their games and toys.
Acquisition of Games.com
As part of the agreement, Infogrames acquires Games.com, an online games portal
launching in early 2001. Games.com has already attracted over four million
visitors to its site, with more than one million people having already
registered to receive information about its launch.
At its launch, Games.com will allow visitors to play more than 30 online games
based on Hasbro properties, some of which include MONOPOLY, CLUE, SCRABBLE1,
ASTEROIDS, and RISK. In addition, visitors to the site can find news,
information, tips and hints about games featured on Games.com.
Visitors to the site will also have the ability to chat with other players and
participate in tournaments based on widely recognized games from the Hasbro
catalog. Games.com's revenue strategy includes e-commerce, sponsorships and
individual subscriptions. Infogrames plans to extend Games.com to broadband
users in the future.
JP Morgan & Lazard Freres advised Infogrames and Salomon Smith Barney
advised Hasbro in this financial transaction.
For additional information, Infogrames has posted a detailed presentation on
today's announcement at www.infogrames.com and www.infogrames-corporate.com.
1 In the United States only.
Infogrames Entertainment SA (Euronext 5257) is a worldwide leader in the
interactive entertainment software industry.
Headquartered in France, the company publishes and distributes award-winning
computer and video games for the PlayStation® game console, PlayStation® 2
computer entertainment system, MicrosoftÒ Xbox, Nintendo® 64, Nintendo® Game
Boy® Color, Sega® Dreamcast™, Macintosh®, and personal computer platforms,
as well as interactive digital television platforms, mobile smart devices (WAP,
HDML) and in-flight entertainment systems. Founded in 1983 by chairman and CEO
Bruno Bonnell, Infogrames has published many award-winning franchises in its
17-year history, such as Alone In The Dark™, Test Drive®, Driver™, Deer
HunterÒ, Oddworld™, UnrealÔ, and V-Rally™. The company is also known for
its best-selling and award-winning line of children's entertainment software
from Humongous Entertainment® starring Putt-Putt®, Freddi Fish™, Pajama Sam®
and SPY Fox™, as well as its successful Macintosh publishing label, Macsoft,
the number one publisher of Macintosh entertainment software. In addition,
Infogrames has a number of key strategic licenses including Warner Bros. Looney
Tunes™, Nickelodeon's Blue's Clues™, AM General Hummer®, and
Harley-Davidson®. Infogrames distributes its games in approximately 60
different countries worldwide. For more information, visit Infogrames' US Web
site at www.us.infogrames.com.
Based in New York, NY, Infogrames, Inc. (Nasdaq: IFGM) is a majority-owned
subsidiary of Infogrames Entertainment SA and serves as the headquarters for the
company's operations in North America.
Hasbro is a worldwide leader in children's and family leisure time entertainment
products and services, including the design, manufacture and marketing of games
and toys ranging from traditional to high-tech. Both internationally and in the
U.S., its PLAYSKOOL, TONKA, SUPER SOAKER, MILTON BRADLEY, PARKER BROTHERS, TIGER
and WIZARDS OF THE COAST brands and products provide the highest quality and
most recognizable play experiences in the world.
SAFE HARBOR STATEMENT
Certain statements contained in this release contain "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements may be identified by the use of forward-looking
words or phrases such as "anticipate", "believe", "could",
"expect", "intend", "may", "planned",
"potential", "should", "will" and "would".
Such forward-looking statements are inherently subject to known and unknown
risks and uncertainties. Actual actions or results may differ materially from
those expected or anticipated in the forward-looking statements. Specific
factors that might cause such a difference include, but are not limited to,
third party actions or approvals that could delay or increase the cost of
implementation of the strategic agreement or alter actions and reduce actual
results; the risk that anticipated benefits of the strategic agreement may not
occur or be delayed or reduced in their realization; and with respect to the
online game site initiative, technical difficulties in adapting games to online
format and establishing the online game site that could delay or increase the
cost of the site becoming operational; the acceptance by consumers of the games
and other products and services to be offered at the site; competition from
other online game sites and other game playing formats; and the fact online game
revenues may not be sufficient to cover the significant advertising and other
expenditures required or the support, service and product enhancement demands of
online users. There is no undertaking of an obligation to make any revisions to
the forward-looking statements contained in this release or to update them to
reflect events or circumstances occurring after the date of this release.
Contacts:
Infogrames:
Erica Krishnamurthy/Tom Richardson (Press Relations) 408-985-1700 ekrishnamurthy@us.infogrames.com,
trichardson@us.infogrames.com
John Menditto (Investor Relations) 212-726-4294 jmenditto@us.infogrames.com
Hasbro: Wayne Charness (Press Relations) 401-727-5983 wcharness@hasbro.com
Karen Warren (Investor Relations) 401-727-5401 kwarren@hasbro.com