Atari: Between a Rock and a Hard Place Harvard Case Solution & Analysis

Atari, producer of video games, has passed through several owners over the years supervised liquidation Infogrames, the French video game publisher. Infogrames later sold Atari secondary public offering of shares in the long run to reduce the share of the parent company to 51.6 per cent in September 2005 to create a complex two-tier ownership structure. Two levels of control makes it difficult to get things done. The financial structure of a problem for Infogrames, because the French company was to consolidate 100 percent results Atari, despite the fact that only 51 percent of the company's. Atari produced significant losses, defaulted on its debt, and faced with the possibility of filing for bankruptcy, no more working capital. Independent Directors of Atari, when faced with an unwanted offer Infogrames, had several options: (1) accept the $ 1.68 offer (take the money and run), (2) to a white knight (purchase of another investor company that would be willing to pay more high price and invest capital).; (3) to file a lawsuit to stop the seizure, to gain time, or perhaps force Infogrames increase its offer "Hide
by James Shein, Judith Crown Source: Kellogg School Management 11 pages. Publication Date: 01 February 2011. Prod. #: KEL539-PDF-ENG

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