Interplay's IPO and Million Dollar Payout

Financial moves and announcements by a handful of gaming companies keep investors on their toes today. Interplay, for example, is reportedly making the move to the world of the publicly traded; the Reuters news service reports that the company filed on Monday with the Securities and Exchange Commission an initial public offering for US$71,875,000 in common stock.

Interplay plans to use the proceeds from its IPO for repayment of debt and for "working capital and other general corporate purposes," which include an increase in product development and sales and marketing.

Of the $71million IPO, $36.1 million of that money will go towards payment of various debts, including a $1 million bonus awarded to Interplay CEO Brian Fargo by the board of directors and $1.5 million to Universal Interactive Studios under the terms of an existing distribution agreement.

Earlier, Interplay also announced an Original Equipment Manufacturer Distribution Agreement with Virgin Interactive, a subsidiary of Spelling Entertainment. That agreement will see Interplay become the exclusive OEM distributor in North America, Latin America, and Europe for all titles from Virgin Interactive (and its subsidiary Westwood) for the next two years, with nonexclusive rights worldwide.

Activision also had some financial news to relate to its shareholders: Its fourth-quarter earnings are expected to be "well shy" of analysts' expectations. Shares of the company slipped in trading before Tuesday's opening bell and closed down a full dollar at the end of trading Tuesday (see our other story in Tuesday's news section).