Atari files for bankruptcy in the US, selling iconic logo and assets

By on January 21, 2013, 1:00 PM

Video games pioneer Atari has filed for bankruptcy in the US and plans to sell all its assets in the next three to four months. But the iconic firm is likely to live on. According to a report by the Los Angeles Times, the move is intended to break the American business free from its debt-laden French parent Atari SA. The latter took over Atari in 2008 and has seen its share price drop 50% over the past year.

An unnamed "knowledgeable person" says that the plan is to develop Atari's US operations into a business based on digital and mobile platforms. The company has increased its focus on iOS and Android as gaming platforms since 2010, developing games based on well-known properties, among them a successful "greatest hits" compilation of arcade titles and an updated version of Pong.

Under the current company structure, Atari Inc. relies on London financial company BlueBay Asset Management for cash, but a $28-million credit facility with them expired as 2012 closed, leaving Atari without the resources to release games currently in the works, including a real-money gambling title titled "Atari Casino."

The company is said to have locked down a debtor-in-possession investment of $5.25 million from Tenor Capital Management in order to continue its operations during the bankruptcy.

If Atari Inc.'s filing goes through, then the company will reportedly seek a private buyer, though with the company planning to sell defining franchises such as Pong and Asteroids and even its logo to raise cash, it's unclear who might step up to buy what's left of the 40 year-old video games legend.

User Comments: 7

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2 people like this | spectrenad said:

/|\ <---- Atari. Close enough.

Tekkaraiden Tekkaraiden said:

I thought Infogames bought the namesake years ago?

Tygerstrike said:

Good for Atari!!!! I myself enjoyed everything Atari put out in the 80's even then Atari computer!! (arrrg Basic!!) I certainly hope Atari can pull this off. If not that Atari T-shirt is going to be worth a lot of cash!!

MrAnderson said:

Again?! Yeah - the original Atari already sold the name and such years ago... so I say it once more Again! wow. They should use the branding for mobile and retro projects.

psycros psycros said:

When did Activision sell them? Ah well...what can you say? They made some incredible stuff in the 80's and then ****** destroyed the company. They tried to revamp some of the franchises but it never really worked for them.

Arris Arris said:

Atari classics on your phone! That would be worth investing in surely

MrAnderson said:

Maybe for old barnds they need to do what Japanese publishers are doing to revitalize their brands... let other developers take the riens.

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