Lawyers in Canada: Davis LLP - Legal Advisors Since 1892

Ontario tax credits and assistance for tech companies

Ontario tries to show you the money (but for how long?)

In these turbulent economic times, it has never been more important to take advantage of existing government programs and tax credits. Ontario has a number of such programs and tax credits to assist emerging video game companies. With government belt-tightening in full swing, it would be wise to act quickly since, as they say, quantities are limited.

Assistance Programs:

The Ontario Media Development Corporation's ("OMDC") Interactive Digital Media (IDM) Fund is designed to provide Ontario interactive digital media content companies with access to the final piece of funding required to move their content projects into production. Successful applicants will receive a non-refundable contribution of up to $150,000 to a maximum of 50% of the project budget to create a market-ready interactive digital media content product. The deadline for applications is November 16, 2009. Almost two years ago, the Government of Ontario introduced The Next Generation of Jobs Fund ("NGJF") to support companies that would develop job-creating projects in Ontario. While companies in a broad range of industries can access the NGJF, digital media is a priority industry. Since the NGJF has been around for two years, there has likely been a material allocation of its funds (and further applications), so interested parties should act quickly before all of the funds are allocated. Finally, at least two game developers have received investments through the OMDC's Video Game Prototype Initiative.
Detailed IDM information here: http://www.omdc.on.ca/Page3215.aspx
Detailed NGJF information here: http://www.ontariocanada.com/ontcan/1med/en/nextgen_main_en.jsp

Tax Credits:

The OMDC also jointly administers with the Canada Revenue Agency a number of media related tax credits which may result in the recovery of a substantial amount of media development expenses. At least two of those tax credits may be of significant interest in the video game industry.

The Ontario Interactive Digital Media Tax Credit ("OIDMTC") is a refundable tax credit for up to 40% of eligible labour, marketing and distribution expenses. The Ontario Computer Animation and Special Effects Tax Credit ("OCASETC") is a refundable tax credit for up to 20% of eligible labour expenses. For both of those tax credits, the process involves first applying to the Ontario Media Development Corporation for a certificate of eligibility and then filing it with your T2 income tax return. The amount of the tax credit less any taxes owing is refunded to you. Generally speaking, qualifying applicants must be corporations with a permanent establishment in Ontario and eligible expenses must be consistent with the particular tax credit you are applying for and must be paid to persons in Ontario.

Detailed OIDMTC information here: http://www.omdc.on.ca/Page3400.aspx
Detailed OCASETC information here: http://www.omdc.on.ca/Page3402.aspx

Many thanks to our tax colleague Dennis Yee for his assistance with this posting

Merger Complete

Activision and Vivendi Games have officially merged as Activision Blizzard, making Vivendi Games a wholly-owned subsidiary of Activision. The merger is viewed as a new chapter in interactive entertainment, giving Activision Blizzard leading market positions in all categories of the interactive software industry.

Coverage at Gamasutra.

Submitted by Josie Morello

Activision Vivendi Merger to Proceed

A Delaware judge denied the preliminary injunction to halt the merger between Activision and Vivendi S.A. that was requested by the Wayne County Employees' Retirement System. The announcement of the $18.9 billion transaction was made last December. Following an approbatory vote of the two companies’ shareholders, the merger will be ready to proceed. The new business will be called Activision Blizzard.

Coverage here (Gamespot)

Submitted by Amanda Alfieri, Articled Student

EA Gets Hostile with Take-Two

The stakes have risen in Electronic Art’s (“EA”) attempt to acquire Take-Two Interactive (“Take-Two”). After having been rebuffed by the management of Take-Two, EA has now shifted its strategy to a so-called “hostile” take-over bid.

The hostile bid basically involves EA making a direct offer to the shareholders of Take-Two. EA’s offer amounts to a total purchase price of approximately $2 billion (or $26 per share).

EA’s offer is open until April 11th.

Coverage at: GameDaily

Previous coverage at: Davis Video Game Blog

Activision Sued by Investors

An interesting legal issue has arisen at Activision Inc. Specifically, Wayne County Employees' Retirement System of Wilmington, Delaware an investor in Activision, is suing the Company for failing to secure the best possible deal in its merger with Vivendi Games.

Under the terms of the proposed $18 billion merger, which was first announced in December, Activision would land up in a minority shareholder position in the merged entity. It was Activision’s alleged failure to secure a premium for agreeing to give up a majority position that motivated the lawsuit.

This type of legal action is not uncommon in large merger transactions but it will be interesting to see what impact it might have on the closing of the highly publicized merger.

More coverage at Delaware Online

Ginko Financial Could Be In Hot Water Again

Following its demise this summer, “self-styled” virtual bank Ginko Financial was thought to have disappeared into the ether - literally. It appears to have indirectly reared its less than popular head - on eBay no less. According to Ginko’s own site, it is selling a “1U Rackmount Xeon 5160 Server” on eBay to the tune of $3200USD. Apparently the“1U Xeon server works great”. No bids however had been received as of the day of this posting.

Many believe that Ginko’s failure in Second Life is the reason Linden Labs instituted its policy, to take effect today, regarding the removal of “virtual ATMs [and] other objects that facilitate the operation or in-world banking” (see previous post).

For those looking to collect on Ginko’s bad debts - chasing down hardware being sold off on eBay probably won’t bring them much joy. I also wouldn’t be comforted by the claim (on the eBay ad) that “hard disk drives will be erased”.

Coverage at Virtually Blind

Caveat Emptor - Or Not... Linden Labs To Shut Down "Banks" In Second Life

In the wake of the collapse of “Ginko Financial” in August 2007 and a significant number of Resident complaints that in-world “banks” are defaulting on their promises, Linden Labs has decided to break with its tradition of not interfering with “in-world” activities by prohibiting in-world companies from offering interest or any direct return on investments in Second Life.

Starting January 22, 2008, Linden Labs will be removing from Second Life “any virtual ATMs or other objects that facilitate the operation or facilitation of in-world “banking,” i.e., the offering of interest or a rate of return on L$ invested or deposited”. Linden Labs has indicated that after January 22, 2008, it will have the right to sanction companies offering so-called banking services by means of “suspension, termination of accounts, and loss of land”.

The policy does not appear to extend to companies that submit appropriate, approved documents from a regulatory authority qualifying them as a “[chartered or registered] bank” or to companies that do not accept payment in exchange for investments - but “who are merely conducting marketing or education”.

This is not the first time Linden Labs has stepped in. It took a similar position in the past with respect to gambling in Second Life. So what about in-world “lawyers”? Has this latest issue about in-world “banking” possibly brought to light issues of broader application, for instance, in respect of “professional” designations/organizations operating in Second Life?

Coverage at Second Life Blog

Answers to FAQs regarding Linden’s policy at Second Life

Atari borrows further $4M, settles license dispute, announces release of Dragon Ball Z game

In separate press releases, Atari has announced a settlement of its dispute with FUNimation over licensing of the Dragon Ball Z name as well as its further borrowing of $4M from BlueBay.

The $4M from BlueBay is in addition to $10M in credit that Atari arranged for in October in order "to meet its holiday season financing needs." Among the conditions of this latest borrowing, Atari has terminated its existing distribution agreements with Infogrames and created a new agreement to cover all of North American distribution of Infogrames games for three years.

The dispute with FUNimation involved alleged breaches by Atari of a license agreement between the two companies. With Atari's payment to FUNimation of $3.5M (being a $2.7 million cash payment and a $0.8M reduction in royalty advances), the legal dispute has been resolved and Atari has announced the release of Dragon Ball Z: Budokai Tenkaichi for Wii and PS2.

Coverage at: Gamasutra

Press Releases at Atari Release 1 and Atari Release 2.

Gold Farming Lawsuit

A US law firm has filed a class action lawsuit in the US on behalf of certain shareholders of Giant Interactive Group Inc., the game company in China that operates ZT Online.

The lawsuit claims that earlier this year Giant sold more than 57 million shares in its IPO, raising more than $886 million; however, Giant’s registration statement and prospectus for the IPO contained untrue and misleading statements.

For example, the plaintiffs say that Giant’s claims of “strong growth” in playing players and average revenues per user were inaccurate, in that Giant did not disclose a recent rule change aimed at curbing gold farming on ZT Online. The plaintiffs say that as a result of that rule change, the number of average concurrent users and peak concurrent users dropped in the third quarter of 2007.

A copy of the Plaintiff’s Class Action Complaint is available here.

Activision and Vivendi Games to merge, Voltron-like, forming Activision Blizzard

The merger between Activision and Vivendi's game division (which includes Blizzard Entertainment), will create a challenger to Electronic Arts for the title of world's biggest publisher. Though Vivendi will have 52 percent ownership of the new company, Activision Blizzard will be run by Activision's Robert Kotick.

The transaction, valued at $18.9 billion, has been approved by the companies' boards, but is still subject to certain closing conditions as well as the approval of Activision shareholders, neither of which are expected to be problematic.

Of note, Blizzard Entertainment will continue to operate with relative independence. Mike Morhaime will continue as President and CEO and, as its own website announces, there will be no management changes at Blizzard Entertainment, nor will Blizzard share a development team with Activision. Why the independence? It might have something to do with the incredible success of Blizzard's World of Warcraft which, with over 9.3 million subscribers, has projected 2007 revenues of $1.1 billion, and approximately $520 million of operating profit.

Coverage at: Gamedaily News and Gamasutra and (and many other places besides).

Atari Announces Additional Loss

Atari, Inc. announced that its net loss for the first quarter ended June 30, 2007 was $11.9 million. By comparison, Atari’s loss for the first quarter ended June 30, 2006 was $7.3 million.

The reported loss was yet another piece of bad news for Atari which in recent months has announced its possible delisting from the Nasdaq stock exchange and ongoing dispute over its distribution of the Dragonball Z franchise.

Additional coverage at Gamasutra and Game Daily

FYI--EA AOK: SEC

The US Securities and Exchange Commission (SEC) has been busy investigating video game companies including Take-Two Interactive, Activision and Electronic Arts. The investigation into EA’s stock option practices has now ended, and EA is no doubt relieved to learn that the SEC will not be recommending any enforcement action against SEC.

Word to all video game companies: before you set up your stock option plans (and in particular, if you’re thinking about backdating any options), talk to a securities lawyer first. And hey, whaddaya know? We have some here.

Coverage here (GameDaily)

Nasdaq Gives Atari Second Warning

After initially warning Atari, Inc. last month, Nasdaq has again notified the software publisher that it is in danger of being de-listed from the exchange.

The latest warning arose after Atari failed to file its quarterly financial statement when due. A hearing has been set for August 30 to determine whether Atari will be de-listed.

Coverage at Gamasutra and CRN Australia

Take-Two Served with Wells Notice

Take-Two Interactive Software Inc.'s ("Take-Two") troubles with the U.S. Securities and Exchange Commission ("SEC") continue as it was recently served with two "'Wells Notices". Wells Notices are letters issued by the SEC to notify parties that the SEC intends to commence an action against them.

Over the past year several former officers of Take-Two have been convicted or plead guilty to charges of backdating stock options that arose from SEC investigations.

Take-Two responded to the Wells Notice by stating that it would fully co-operate with the SEC.

Coverage at cfo.com and gamedaily.com.

Former Take-Two executives charged with falsifying company records

Two former executives of Take-Two Interactive Software Inc. ("Take-Two") have plead guilty to misdemeanor charges involving falsifying company records in connection with backdated stock options. The former general counsel of Take-Two was fined $50,000 (U.S.) and has been permanently barred from holding certain positions in publicly-traded companies. The former comptroller of Take-Two was fined $300,000 (U.S.) and was barred from holding certain positions in publicly-traded companies for five years.

More coverage at: C/Net News.com

Related blog entry in one of our past postings.

Take-Two Under SEC Investigation

Take-Two Interactive Software Inc. has received a notice from the Securities and Exchange Commission that it is under formal investigation for its stock-options practices.

Take-Two completed earlier this year its own investigation of its stock-option practices and subsequently, its former CEO and founder, Ryan Brant, pleaded guilty to fraud. Take-Two cleared its current executives for any wrong-doing. It will interesting to see if the SEC comes to the same result.

Coverage: http://shorl.com/segihymepeda (C/Net News)

Boardroom Coup At Take-Two

A majority of the shareholders of voted in favour of putting a new board in place at Take-Two Interactive Software Inc.’s annual general meeting.

A group of large shareholders decided that it was in the best interest of the company to put a new board in place as the directors in their opinion were to blame for the financial and back-dating of option troubles.

This is a very interesting case of shareholders activism in this new corporate governance age and so far the market has acted positively to the move.
Coverage: http://shorl.com/nurobarihygu (Monterey Herald.com)

Take-Two Downgraded

Despite Take-Two’s blockbuster hit, the Grand Theft Auto series, Wedbush Morgan (a financial analyst firm), has downgraded Take-Two’s stock to a sell due to poor financial results and hopes for the future.

Coverage: http://shorl.com/litretragykere (Gamesindustry)

Take-Two Take Over?

Stay tuned for Take-Two Interactive Software Inc.’s (NASDAQ: TTWO) annual general meeting on March 23rd. A group of investors currently holding 46% of the company may take control of the board, which could be the end of its current CEO’s, Paul Eibeler.

Take-Two has gotten a lot air time in the media a lately in connection with backdating of options, late filings of financials and placement of hot coffee in Grand Theft Auto. Despite its trouble, Two-Take has a lot of solid assets in its portfolio including Grand Theft Auto and if the change of control is successful, the company could very well be sold or certain assets could be spun out.

Coverage:
http://shorl.com/tarybrabobrupre (Gamesindustry)
http://shorl.com/bibruvenulyfro (Gamasutra)

Former Take-Two CEO Admits His Sins Of Backdating

Ryan Brant, the founder and former CEO of Take-Two who resigned in October of last year has pleaded guilty to felony criminal charges for his role in backdating stock options and has settled with the SEC and the NY Country District Attorney’s office. Ryan Brant will be sentenced to five years probation and must pay $7.3 million in fines. Mr. Brant made $5.3 million on the backdating ordeal. As part of the settlement, Mr. Brant will be banned from acting as an officer and director of public companies.

It is interesting that Mr. Brant escapes prison despite committing fraud in the millions.

Take-Two’s current executives have all been cleared by the investigations

Coverage:
http://shorl.com/vasyjalenydu (Red Herring)
http://shorl.com/juvasobyfrisi (MSN)

Take-Two Completes Option Backdating Investigation

Take-Two Interactive Software Inc. (NASDAQ: TTWO) has completed its backdating investigation and has found no misconduct by its current top executives. Take-Two investigation revealed certain “improprieties” in the process of granting the options and that the incorrect dates were for financial accounting purposes! It will be interesting to see if the SEC will be as kind in their conclusions of the backdating of the options. It seems like Take-Two will blame its former CEO Ryan Brant as the culprit.

Take-Two must now restate its financial statements between April 1997 and August 2003. We have yet to see if this means that the executives must repay their bonuses for said years. My guess is that they won’t have to.

Take-Two’s problems do not end there. NASDAQ has filed another delisting warning due to Take-Two’s failure to file its financials statements. This is not the first warning that Take-Two has received from NASDAQ which delay has been blamed on the investigation. If Take-Two does not file its financials within the next month, there is a significant risk that it will be delisted from NASDAQ.

Coverage:
http://shorl.com/kypradosorulo (Gamasutra)
http://shorl.com/brujytefrapuma (GamePro)

Take-Two: http://www.take2games.com/

Not So Majestic!

Majesco Entertainment Co. (NASDAQ: CM), the US publisher of such games as Jaws Unleashed, Soldier of Fortune, BloodRayne was issued a going concern warning by its auditors last month.

Such a warning means that Majesco that the auditors have significant doubt about the company's ability to exists as a going concern and to generate enough resources to stay operational.

This basically means that Majesco must either significantly reorganize its business and/or obtain financing in order to secure the future operations of the business.

Majesco has reduced its development costs and operating expenses but only time will tell if it enough.

Coverage: http://shorl.com/fredufrufokati (Game Industry)

Majesco: www.majescogames.com

Class Action Lawsuit Over Backdating

The directors and executive officers of THQ Inc (NASDAQ THQI) are facing a class action lawsuit from its shareholders as a New York law firm is looking for plaintiffs in its anticipated class action lawsuit based on their wrongdoing in connection with backdating of stock options.

The firm, Stull, Stull& Brody is one of many law firms whose business is to generate business by starting class action lawsuits on behalf of a defined class of plaintiff. The law firm involved must first identify a class of people who has been the subject to a wrong, obtain a sufficient number of plaintiffs, get the class action lawsuit certified and finally settle the dispute.

The shareholders are only suing the directors and officers as it would not make any sense to sue the issuer as any award taking from the issuer and given to the shareholders would be like taking money from the right-hand pocket and giving it to the left-hand pocket.

If successful each shareholder stand to gain a minor amount but the only party who will really benefit from this action is the law firms involved.

Coverage         www.gamespot.com/news/6162185.html
THQ               http://thq.com/

Another Publisher Suffers From Backdating

THQ Inc. (NASDAQ THQI) has received a warning from NASDAQ that it will be delisted unless it files its quarterly earning statement. As reported, THQ is currently conducting an investigation of its stock option grant practice and THQ will most likely have to restate its financials.

Coverage         www.gamesindustry.biz/content_page.php?aid=21250 and

                        www.gamespot.com/news/6162289.html

THQ               http://thq.com/

Atari's Shareholders Approves Stock Split

As reported in March of last year, Atari received a delisting warning from NASDAQ pursuant to which Atari's stock would be delisted from NASDAQ unless its traded above $1 for more than 30 days.

In November Atari decided to do a ten for one reverse stock split of its stock, which means that each shareholder will receive one Atari share for every ten Atari shares it held prior to the reverse stock split. This does not change the value of the company but increases the value of each share tenfold. On January 4, 2007, Atari's shareholders approved the reverse stock split. 

It will be interesting to see how the Atari stock will fare in the future. Shortly before the reverse stock split, Atari's stock traded at $0.50 per share and theoretically after the stock split the stock should trade at $5 per share. Historically, this has not been the case and typically a reverse stock split has only provided a struggling issuer with temporarily relief as the stock price often will spiral towards below $1 per share shortly after a reverse stock split. However, if nothing else, the stock split will provide Atari's management with time to solve its financial and business problems before the stock dips below $1 again.

We will await the situation in suspense.

Coverage         www.gamasutra.com/php-bin/news_index.php?story=12275

Atari                www.atari.com

Too Many Options?

Activision, Inc. (NASDAQ ATVI) failed to file its quarterly earning statement due to its ongoing investigation of its stock option grant practice and has accordingly been issued a delisting warning.

Activision is one of more than 180 companies which is the subject of a SEC run investigation of backdating of stock options.

Coverage         www.gamespot.com/news/6161835.html

Activision         www.activision.com

Atari Splits Its Stock To Avoid Delisting

As antici[ated, Atari is going to do a reverse stock split in order to bring its stock price above $1 as it is doing a ten for one reverse stock split, meaning that every shareholder will get one new Atari share for every ten old Atari share he, she or it held prior to the reverse stock split.

This will at least for a little while give its management the opportunity to work out its business and financial issues until the stock dips below $1 again.

Such a consolidation requires simple majority at a special meeting of the shareholders, which should not be an issue as Atari's parent hold more than 50% of the issued and outstanding shares of Atari.

Coverage         www.gamesindustry.biz/content_page.php?aid=20891

Atari                www.atari.com

TAKE TWO Completes Preliminary Option Investigation

Take-Two Interactive Software, Inc. (NASDAQ TTWO) ('Take Two"?) has completed its preliminary independent investigation of its stock option grant practice which we reported on last summer and it has found a number of irregularities in its stock option grant practice. Accordingly, Take Two will have to restate its financials all the way back to 1997. The investigation cleared its current CEO and CFO of any wrongdoing.

Moreover, Take Two is the subject of a SEC investigation of its stock option grant practice, which will publish its findings later this year.

Options are granted as a form of future compensation to motivate employees. The idea is to grant an option to an employee, typical a senior officer, to purchase a share of the issuer at a future date at the current trading price of the issuer. This will provide the optionee with an incentive to increase the value of the issuer.

The TSX rules provides that stock options must be granted at an exercise price at no less than the trading price at the date of the grant. The TSX Venture Exchange rules provides that the exercise must not be less than the trading at the date of the grant less a discount of 15%-25% depending on the trading price of the issuer. Otherwise, investors expect that the exercise price is equal to the trading price of the issuer at the time of grant.

The major issues that the SEC has been looking at is backdating of options. Backdating can occur in a number of ways; one way is where the board declares a stock option without setting an exercise price. At a subsequent board meeting, the board sets the exercise price which will be equal to the lowest level in the period. Another way of backdating occurs when the board substitutes the actual grant date with a grant date where the stock price is lower.

Another issue of concern is springloading which means that the issuer grants options prior to the issuer releasing positive information. After the release of the positive information, the stock price will go up and the option will be in the money.

The investigations of stock option practices have mostly been aimed at issuer listed in the US. This does not mean that there are no problems with backdated options for Canadian listed issuers. Canadian listed issuers may be the subject of similar investigations in the future as Canadian listed issuers also have similar or better opportunities to backdate than US listed issuers. The Canadian rules with respect to disclosure of stock option grants are similar to those in the US prior to the implementation of the Sarbanes-Oxley Act which went into force in 2002. Under the Sarbanes-Oxley Act, stock option grants must be disclosed within two days of the grant. It is interesting that most of the irregularities in the US have occurred prior to Sarbanes-Oxley Act came into force.

A TSX listed issuer must report any grant of options to the TSX no later than 10 days after the end of the month in which the grant was made. Moreover, any grant of options to insiders must be filed by the insider no later than 10 days after the grant. This gives a TSX listed company certain room to backdate options.

A TSX Venture Exchange listed issuer has less room to backdate options as it must issue a press release each time it grants options to its directors and officers.

It will be interesting to see how widespread the problem of backdating is in Canada. Research In Motion Limited (TSX RIM) is subject to such an investigation at the moment but it is spearheaded from the SEC as the RIM stock is dually listed at NASDAQ.

Coverage         www.gamasutra.com/php-bin/news_index.php?story=12275
Take Two        www.take2games.com

Atari's Parent Tries Again

Atari, Inc. cannot get a break. Infogrames Entertainment, the parent of Atari, which has been struggling financially for a while (and is now reduced to a penny stock) failed to get the required 20% voter turnout at its special shareholders meeting which was set to approve the EUR 74 million refinancing of the company. This was the second attempt in getting the shareholders out and they give it another try on November 15th.

20% turnout is a very high threshold for a widely held stock and is even more difficult if the shareholders have lost faith in the management's ability to turn the company around. Typically, public companies only require two shareholders to turn out, either in person or in proxy.  Rules about shareholder turnout (or qourum) are stated in the company bylaws or governing legislation.  Infogrames is governed by the corporate laws of France.

Stay tuned for the next episode in the Atari saga.

Coverage http://shorl.com/jerovistehudi (Gamedaily)

AMD Is Getting Closer To The Finish Line

The chips have fallen and Advanced Micro Devices, Inc., also known as AMD (NYSE AMD) has cleared another hurdle in the process of its take-over ofATI Technologies Inc.(NASDAQATYT and the TSX ATY) with the 99.7% ATI shareholders approval of the merger.

Only time will tell if this deal will create the desired shareholder value and if AMD will be able to rival Intel as the number one chipmaker in the world. The merger is expected to close next week.

Coverage http://shorl.com/bubrikadokypo (Gameindustry)

AMD www.amd.com

ATI www.ati.com

Infogrames Restructure Its Debt

As reported yesterday, Infogrames Entertainment is in financial trouble and it has unveiled the cure, a debt restructuring plan pursuant to which it will shed approximately 173 million Euros in debt. The pain will be felt by its main bank, creditors and not least the bondholders. The next item on Infogrames agenda will be to turn the business around. It is expected that Infogrames will resume trading today.

Coverage at http://www.shorl.com/davepusevyfo (Gamedaily.biz)

Time Is Running Out For Atari

In April of this year, we reported that Atari, Inc. risked being delisted from NASDAQ if its shares did not trade above $1.00 for more than 10 consecutive business days. That deadline ran out on August 30 and Atari failed to meet NASDAQ's continuing listing requirements, as its share has not broken the $1.00 price. However, Atari intends to request a hearing before the NASDAQ Listing Qualifications Panel, and will remain listed on The NASDAQ Global Market until the panel issues its decision.

On August 30, Atari's share traded at $0.69. In order to bring its trading price above $1.00, Atari could do a reverse split of its share. A reverse split means that the company reduces the number of issued and outstanding shares proportionally among all of the shareholders. For example, each shareholder would get one 'new"? Atari share for every three 'old"? Atari shares that they held. Thereby the trading price will increase. Historically, this has shown only to give a struggling company a short lived relief, in that the trading price often will spiralling down under $1.00 again.

Coverage at http://shorl.com/jefistimujypro (Gamasutra)

Atari's website www.atari.com

Atari's Parent Suspended

Now Atari, Inc.'s parent company, Infogrames Entertainment SA, has been suspended from the French stock exchange due to continuing operation related issues.

Lately, Infogrames has been struggling with losses and massive debts. In order to bring down the debt, Infogrames has been selling its properties and a number of entertainment studios.

Coverage at http://shorl.com/difygrodobede (Gamasutra)