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
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.
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, Microsoft 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
Hunter, Oddworld™, Unreal, 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.
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.
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