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Atari CEO offers to acquire control of company following financial struggles
Amidst Atari's continued money struggles, its one-year CEO is looking to acquire the company outright.
December 22, 2022
2 Min Read
During its recent financial results (first spotted by PC Gamer), game publisher Atari disclosed that its CEO Wade Rosen made a "friendly offer" to purchase the company. Per Atari's press release, Rosen's acquisition would "increase the managing shareholder’s capacity to support the Company’s development ambitions."
The offer, which runs from today (December 22, 2022) through January 26, 2023, comes after Atari reported a "liquidity shortfall and additional financing requirements." For the first half of the 2022-2023 fiscal year, Atari had a loss of €5.4 million (or $5.7 million), up 54.2 percent from 2021-2022's €3.5 million ($3.7 million).
One of the big reasons for its losses this half-year was the Atari VCS console and cartridge. Sales for those decreased from €2.3 million to €0.2 million, with the VCS holding much of the blame. Production of the console has since been halted, though Atari said it would implement a "new commercial strategy" that would continue into 2023.
Though its games revenue was up 10 percent from last year, Atari as a whole noted there was an "uncertain macro-environment" for games and the blockchain. With that said, Atari said it will continue to develop and publish titles for the RollerCoaster Tycoon franchise for the next decade.
Atari entered into the blockchain territory in 2021, but terminated its project earlier this year after a falling out with its crypto business partner ICICB group. In the half-year report, the publisher admitted to there being "uncertainty around the blockchain market environment."
The company's blockchain revenue also increased from €400,000 to €700,000, though the value of Atari's digital assets is up for debate. In the Sandbox metaverse, Atari owns 972 parcels, but by its own admission, "it is difficult to assign an aggregate value to these assets."
Atari turned 50 years old this past summer, and Rosen previously told NME his plans for the company include releasing more games. Getting control of the company may help him further his goals and push the struggling developer out of the red that's become commonly associated with its logo.
About the Author(s)
Contributing Editor, GameDeveloper.com
A Kansas City, MO native, Justin Carter has written for numerous sites including IGN, Polygon, and SyFy Wire. In addition to Game Developer, his writing can be found at io9 over on Gizmodo. Don't ask him about how much gum he's had, because the answer will be more than he's willing to admit.
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