Atari Maker Buys Cryptic
Hughes Hubbard advised videogame developer Cryptic Studios Inc. on the French-law aspects of its acquisition by Atari’s parent company, Infogrames Entertainment.
According to a story that ran in Variety, Infogrames paid $28 million in cash plus up to $48 million in bonuses for Cryptic, makers of such successful multiplayer online games as “City of Heroes” and “City of Villains.” Variety also reported that the acquisition is being financed entirely by a bond issuance.
This acquisition is a critical step in the implementation of Atari’s strategy to become a leading online game developer and publisher. It encompasses all of Cryptic’s proprietary IP—tools, technology and any work in progress. It also integrates all members of the leadership team and employees into Infogrames.
Established in 2000 and headquartered in Los Gatos, California, Cryptic has generated over $100 million in lifetime revenues and up to 180,000 peak subscribers. Cryptic’s revenues for the fiscal year ending June 30, 2008 were $17 million.
The Infogrames group, including the Atari brand, is a global producer, publisher and distributor of interactive entertainment software for all market segments and all interactive game consoles from Microsoft, Nintendo and Sony Computer Entertainment, advanced smartphones, personal computers, web and online. Its games are sold in more than 60 countries through an international distribution network and direct to consumers.
Christopher Mesnooh and Claire Guionnet-Moalic represented Cryptic Studios.