Infogrames To Acquire Hasbro Interactive For $100 Million
French publisher Infogrames is to acquire Hasbro Interactive for $100 million, comprised of $95 million in Infogrames shares and $5 million in cash.
In addition, Infogrames has signed a 15-year licensing agreement with Hasbro, allowing it exclusive rights to develop and publish games based on current and future Hasbro properties on all formats. The French giant now has access to a wealth of huge franchises including Monopoly, Scrabble and the legendary Atari brands.
Meanwhile, Infogrames will also acquire Hasbro's online games portal Games.com. Another facet of the deal will see Hasbro receiving 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, and the deal is expected to be completed by the end of March 2001.
Infogrames CEO Bruno Bonnell commented: "Infogrames and Hasbro are truly poised to become worldwide leaders in the digital entertainment market. 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.
"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," he added.
Alan Hassenfeld, Hasbro's Chairman and CEO said: "This arrangement with Infogrames is a very positive one for Hasbro on many different levels. 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."
Meanwhile, Infogrames will also acquire Hasbro's online games portal Games.com. Another facet of the deal will see Hasbro receiving 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, and the deal is expected to be completed by the end of March 2001.
Infogrames CEO Bruno Bonnell commented: "Infogrames and Hasbro are truly poised to become worldwide leaders in the digital entertainment market. 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.
"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," he added.
Alan Hassenfeld, Hasbro's Chairman and CEO said: "This arrangement with Infogrames is a very positive one for Hasbro on many different levels. 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."
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