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AEO News Bulletin 06
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## ## ## ## ## AEO News Bulletin #6
####### #### ## ## Wednesday, Sept. 28, 1994
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According to a press release issued today, Sega Enterprises, Ltd. is
plunging nearly $90 million into Atari Corporation. $50 million to
come from direct payments for worldwide access to Atari Corporation
videogame patents for several years. The remaining $40 million will
come from a purchase of 4.7 million shares of Atari common stock.
To quell all rumors, this is -not- a "buyout" of Atari Corporation.
The size of stock purchased is 7.4 percent of total Atari Corporation
stock.
In the same joint press release, the two videogame giants announced
that they may come to agreement on cross-platform title licensing in
the future.
The press release follows:
Contact: Sega Enterprises. Ltd. Atari Corporation
Richard Brudvik-Lindner Sam Tramiel
(415) 802-3657 (408) 745-8824
August Liguori
(408) 745-2069
Manning, Selvage & Lee (for Sega)
Brenda Lynch
(818) 509-1840
SEGA AND ATARI ANNOUNCE LONG-TERM LICENSING AGREEMENTS, EQUITY
INVESTMENT, AND RESOLUTlON OF DISPUTES
SUNNYVALE, Calif. (September 28, 1994) -- Sega Enterprises, Ltd., and
Atari Corporation (AMEX:ATC) announced today an affiliation that
includes several agreements designed to serve as the basis of future
working arrangements between the two video game manufacturers.
Under the terms of the agreements:
- Sega will receive worldwide, non-exclusive rights with certain
exceptions to Atari's extensive library of patents, a number of which
extend beyond the turn of the century. The agreement covers Sega, its
subsidiaries, its licensees, and its customers for more than 70 U.S.
patents and applications, for a fully prepaid royalty to Atari
covering the remaining 7 years of certain patents, amortized at
approximately $7 million per year. Atari will therefore receive a
total of $50 million, less Atari's contingent attorney fees and costs.
- Sega will purchase approximately 4.7 million shares of Atari
common stock for a total price of $40 million.
- Both companies will enter into software license agreements for a
specified number of games that would be made available on each
company's present and future platforms.
- Atari will dismiss its legal proceedings against Sega, and each
company will release all claims against the other.
The agreements are subject to approval by the United States Department
of Justice and the Federal Trade Commission under Hart-Scott-Rodino
and to certain other conditions.
"We are extremely pleased with this relationship that has potential
long-term benefits for both companies," said David Rosen, Co-Chairman
of Sega of America.
"We at Atari are very pleased with this new affiliation. The increased
cash position will be used among other things to enhance our marketing
position this fall," said Sam Tramiel, President, CEO of Atari Corp.
Atari designs and markets interactive multimedia entertainment systems
and is located in Sunnyvale, California.
Sega Enterprises, Ltd., Tokyo, is a nearly $4 billion company,
recognized as a leader in interactive digital entertainment media with
operations on five continents.
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AEO News! is a service of Atari Explorer Online Magazine, a bi-weekly
publication covering the entire Atari community. All material herein is
believed accurate at the time of publishing. Material published in this
issue may be reprinted (unless specified in the article) by registered
Atari user groups and non-profit publications, citing Atari Explorer
Online as the originator. Other reprints granted upon approval of
request. Send requests to <aeo.mag@genie.geis.com>.
--==--==--==--==--
Atari, ST, Mega ST, STE, Mega STE, TT030, Atari Falcon030, TOS, MultiTOS,
NewDesk, BLiTTER, Atari Lynx, ComLynx, Atari Jaguar, Atari Portfolio, and
the Atari Fuji Symbol are all trademarks or registered trademarks of Atari
Corporation. All other trademarks mentioned in this edition of AEO News!
belong to their respective holders.
--==--==--==--==--
AEO News! and
Atari Explorer Online Magazine
"Your Source for Atari News"
Copyright (c) 1994, Subspace Publishers
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:: AEO News! #6 ATARI EXPLORER ONLINE September 28, 1994 ::
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