Foundation 9 Entertainment, which already owns Backbone, Pipeworks Circle of Confusion, Digital Eclipse and Imagine Engine, just snatched up Shiny Entertainment from Atari.

Shiny Entertainment, creators of the Earthworm Jim franchise, will "co-locate" with The Collective, creators of crap movie knock-off The Da Vinci Code, in 2007.

While F9 managed to wrestle the studio out of Atari's weakening grasp, then didn't get away with the Earthwork Jim IP, which remains firmly in claws of Atari.

"Shiny Entertainment fits well with the current studios of Foundation 9 Entertainment and aligns with our long-term goals for the future," said Jon Goldman, Chairman and CEO. "The studio has tremendous talent and experience working with big Hollywood franchises and will be working with us on a major, as-yet-undisclosed day and date release. The Shiny team will only add to our capabilities and technology base."

What is this, buy-out Monday? Brian Crecente

LOS ANGELES, CA - October 2, 2006 - Foundation 9 Entertainment, the largest
independent game developer in North America, announced today that it acquired
the non-game assets of Shiny Entertainment Studio from Atari, Inc. in an
acquisition funded by Foundation 9's recent investment from Francisco Partners.

"Shiny Entertainment fits well with the current studios of Foundation 9
Entertainment and aligns with our long-term goals for the future," said Jon
Goldman, Chairman and CEO. "The studio has tremendous talent and experience
working with big Hollywood franchises and will be working with us on a major,
as-yet-undisclosed day and date release. The Shiny team will only add to our
capabilities and technology base."

Under the terms of the deal, the Shiny team will remain intact and will
co-locate with The Collective, one of the Foundation 9 studios, in 2007.

Shiny Entertainment was started in 1993 and has shipped eight products including
two games based on The Matrix film franchise. The studio develops for all
platforms and is perhaps best known for its original property, Earthworm Jim
(which remains an Atari property), which debuted on the Sega Genesis and Super
Nintendo in 1994. Shiny was acquired by Atari in 2002.

Shiny will join current F9E studios - The Collective, Backbone Entertainment,
Pipeworks, ImaginEngine and Digital Eclipse - solidifying Foundation 9's
presence as the largest independent developer in North America. The company
develops in all genres for all platforms and age groups, and has shipped more
than 300 titles, including many bestsellers.

The company is currently at work on more than 20 titles, including two new
editions of its original property, Death, Jr., to be published by Konami; Dirty
Harry to be published by Warner Bros. Interactive Entertainment; and Sonic
Rivals to be published by Sega. The company's Backbone studio just recently
shipped MechAssault: Phantom War for the Nintendo DS, published by Majesco
Entertainment.

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