Infogrames Buys Hasbro

Infogrames has announced the acquisition of Hasbro Interactive and its Games.com Web site. Using US$95 million in Infogrames Entertainment SA securities and $5 million in cash, Infogrames will purchase 100 percent of the common stock of Hasbro Interactive and Games.com. The three-tier agreement gives Infogrames the exclusive rights to develop and publish games based on current and future Hasbro properties for a period of 15 years. At the end of the 15-year period, an additional five years may be added to the agreement, depending on Infrogrames' performance.

The formats covered under the agreement include the Sony PlayStation 2, the Microsoft Xbox, the Sega Dreamcast, the Game Boy Advance, the Nintendo GameCube, PCs, broadband networks, interactive television, cellular telephones, arcades, and handheld devices. With this acquisition, Infogrames has secured the publishing rights to approximately 60 titles that are currently in development, including Zoo Tycoon, Monopoly, Micro Machines, Twister, Circus Maximus, Civilization, and Grand Prix 4 for the PlayStation 2 and the Xbox.

"Infogrames and Hasbro are truly poised to become worldwide leaders in the digital entertainment market," said Bruno Bonnell, chairman and CEO of Infogrames. "Infogrames' external growth strategy consists of three requirements: a willingness of the prospective partner's management to share our strategic vision, a complementary set of skills and products, and finally, value for our shareholders. The Hasbro Interactive and Games.com acquisition meets these criteria. Infogrames' access to Hasbro's long list of well-known properties fits perfectly with our long-term publishing strategy to become the leader in family entertainment. The terms are beneficial for Infogrames Entertainment, since they have no direct impact on the company's future investment capacity."

"This arrangement with Infogrames is a very positive one for Hasbro on many different levels," said Alan Hassenfeld, Hasbro's chairman and CEO. "First, we have aligned ourselves with a premier player in the interactive arena. Second, this strategic agreement with Infogrames meshes with our strategy of reducing costs as we focus on consistently delivering profits going forward. Third, this arrangement will provide a continuing revenue stream to Hasbro over the long-term through Infogrames' expertise in leveraging our current and future properties."

Under the terms of the deal, Infogrames also holds the rights to publish games based on MicroProse franchises such as Civilization, Falcon, and Roller Coaster Tycoon; Atari franchises such as Centipede, Missile Command, and Pong; and Hasbro properties such as Monopoly, Scrabble, Clue, Risk, Boggle, Mr. Potato Head, Tonka trucks, Action Man, My Little Pony, and Candyland. Infogrames will also publish the upcoming massively multiplayer Dungeons & Dragons game. The agreement is subject to the approval of Infogrames' shareholders and could be finalized in the first calendar quarter of 2001.