Press release: 1994-09-28: SEGA AND ATARI ANNOUNCE LONG-TERM LICENSING AGREEMENTS, EQUITY INVESTMENT, AND RESOLUTION OF DISPUTES
From Sega Retro
|| This is an unaltered copy of a press release, for use as a primary source on Sega Retro. Please do not edit the contents below.|
Original source: The Free Library
TOKYO and SUNNYVALE, Calif., Sept. 28 /PRNewswire/ -- Sega Enterprises, Ltd., and Atari Corporation (AMEX: ATC) announced today an affiliation that includes several agreements designed to serve as the basis of future working arrangements between the two video game manufacturers. Under the terms of the agreements: -- Sega will receive worldwide, non-exclusive rights with certain exceptions to Atari's extensive library of patents, a number of which extend beyond the turn of the century. The agreement covers Sega, its subsidiaries, its licenses, and its customers for more than 70 U.S. patents and applications, for a fully prepaid royalty to Atari covering the remaining 7 years of certain patents, amortized at approximately $7 million per year. Atari will therefore receive a total of $50 million, less Atari's contingent attorney fees and costs. -- Sega will purchase approximately 4.7 million shares of Atari common stock for a total price of $40 million. -- Both companies will enter into software license agreements for a specified number of games that would be made available on each company's present and future platforms. -- Atari will dismiss its legal proceedings against Sega, and each company will release all claims against the other. The agreements are subject to approval by the United States Department of Justice and the Federal Trade Commission under Hart-Scott- Rodino and to certain other conditions. "We are extremely pleased with this relationship that has potential long-term benefits for both companies," said David Rosen, Co-Chairman of Sega of America. "We at Atari are very pleased with this new affiliation. The increased cash position will be used among other things to enhance our marketing position this fall," said Sam Tramiel, President, CEO, of Atari Corp. Atari designs and markets interactive multimedia entertainment systems and is located in Sunnyvale, California. Sega Enterprises, Ltd., Tokyo, is a nearly $4 billion company, recognized as a leader in interactive digital entertainment media, with operations on five continents. -0- 9/28/94 /CONTACT: Richard Brudvik-Lindner of Sega Enterprises, Ltd., 415-802-3657; or Brenda Lynch of Manning, Selvage & Lee, 818-509-1840, for Sega; or Sam Tramiel, 408-745-8824 or August Liguori, 408-745-2069, both of Atari Corp./ (ATC) CO: Sega Enterprises, Ltd.; Atari Corporation ST: California IN: ENT CPR SU: LIC PS-TL -- NY017 -- 8608 09/28/94 08:50 EDT COPYRIGHT 1994 PR Newswire Association LLC No portion of this article can be reproduced without the express written permission from the copyright holder. Copyright 1994 Gale, Cengage Learning. All rights reserved.