Infogrames Wants to Take Atari Private

The rumors are true, Infogrames is looking to take Atari private. Infogrames, who already owns a majority stake in the ailing game company, has sent a letter to Atari's Board of Directors expressing its interest in buying out the rest of the company for $1.68 per share.

Infogrames holds the right to “withdraw the proposal letter, and/or to modify the proposal contained in the proposal letter in any way as a result of negotiations or for any reason at all, or to submit alternative proposals to the board of directors of Atari Inc.”

The proposed deal is the latest in the string of consolidation and merger proposals that have hit the industry in recent months. In late February we heard about Electronic Arts' offer on Take-Two Interactive, one that was ultimately rejected, not once, but twice. And in early December the industry was rocked by the announcement that Vivendi Games and Activision would be merging to create Activision-Blizzard.

Atari has been struggling for years and announced in November that they would cease development to focus on publishing as they try to get back on their feet. CEO David Pierce stepped down at the same time. With the new addition of former Sony employee Phil Harrison as President and a fresh start under Infogrames the company may be able to pull things out of the gutter.