Reappraisal of Atari

The most important thing in any company is the people. With the right people you can get everything else. So with this in mind it is interesting to see what is happening at Atari (ATAR). Like many, I thought that their incredibly poor performance and small size meant that they were doomed. However, the people that they have now make a recovery look imminently possible:

• David Gardner. Former EA VP and COO of worldwide studios.
• Phil Harrison. Former president of Sony worldwide studios.

Even better, their public announcements seem to indicate a move away from the dangerous territory of AAA boxed games, which they are too small to compete at effectively, to online gaming, where there is more growth, more opportunity and no handicap for being small.

It is little wonder that Infogrames now want to buy the remaining stock in the company that they do not already own.

Comments

[User 163637]

Bruce,

I agree with your analysis, but it's important to note that Gardner and Harrison joined Infogrames (IFG) and *not* Atari (ATAR). Also, all intellectual assets including the Atari name belong to IFG !

Since Infogrames (IFG) proposed to buy ATAR at 1.68 (and the deal could fall through and ATAR could sink and be delisted as a consequence !), do not buy ATAR but IFG in case you are bullish on the new CEO.

Details and my point of view here (Google Discussion Group):

finance.google.com/gro...

Since Infogrames uses the Atari name on PR and game boxes there's some confusion and I guess some people bought the wrong stock (ie. ATAR and not IFG) as a consequence.

Buyer beware !