Kotaku
In an SEC filing, Atari reported that its delisting from the Nasdaq is official. Trading of the company's shares was suspended this morning at market open.
The company said it will appeal the decision, bringing it before Nasdaq's Listing and Hearing Review Council. At the same time, Atari is going ahead with previously-announced plans to merge with Infogrames, its majority shareholder, who is also loaning the company $20 million in required capital.
The company received a notice in December 2007 that it had to maintain a market value of $15 million or more for at least 10 business days, which it was unable to do. On March 24th, 2008, the Nasdaq notified Atari that it would be delisted unless it requested a hearing - it did, and that hearing, held on May 1st, failed to swing things Atari's way, and the Nasdaq ruled to proceed with the delisting process.
Full announcement follows the jump.
Atari, Inc. (Nasdaq: ATAR), an interactive entertainment company, announced today that on May 7, 2008 it received a letter from The Nasdaq Stock Market stating that a Nasdaq Listing Qualifications Panel has determined to delist Atari, Inc.'s securities from the Nasdaq Global Market and will suspend trading of Atari, Inc.'s shares effective on the opening of business on May 9, 2008. Atari, Inc. plans to request a review from the Nasdaq Listing and Hearing Review Council, which could alter or dismiss the Panel's determination. However, such a request will not delay the suspension of trading. Atari, Inc. now expects to be quoted on the Pink Sheets, an electronic quotation service maintained by Pink Sheets LLC. The Pink Sheets allow continued trading of securities of delisted companies. Atari, Inc. expects its common stock to be traded on the Pink Sheets under the symbol "ATAR" or "ATAR.PK". Atari, Inc.'s common stock may also be quoted on the OTC Bulletin Board(R), a regulated quotation service for over-the-counter securities, provided one or more market makers apply to quote Atari, Inc.'s securities.As previously announced, on December 21, 2007, the Nasdaq Listing Qualifications Department notified Atari, Inc. that, pursuant to Nasdaq Marketplace Rule 4450(e)(1), unless the market value of Atari, Inc.'s publicly held shares (which is calculated by reference to Atari, Inc.'s total shares outstanding, less any shares held by officers, directors or beneficial owners of 10% or more) maintained an aggregate market value of $15.0 million or more for a minimum of 10 consecutive business days prior to March 20, 2008, Atari, Inc.'s securities would be subject to delisting. The value of Atari, Inc.'s publicly held shares did not reach that level within the required period, and on March 24, 2008, the Nasdaq Listing Qualifications Department notified Atari, Inc. that the Nasdaq Staff had determined that Atari, Inc.'s securities were subject to delisting unless Atari, Inc. requested a hearing before a Nasdaq Listing Qualifications Panel. Atari, Inc. requested a hearing on March 27, 2008, which stayed the delisting process until the hearing was held and the hearings panel delivered a decision. The hearing was held on May 1, 2008. The Nasdaq hearings panel thereafter ruled to proceed with the delisting process and, effective May 9, 2008, Atari, Inc.'s common stock will no longer trade on The Nasdaq Global Market. Atari, Inc. plans to request that the Nasdaq Listing and Hearing Review Council review the Nasdaq hearings panel decision.
Atari, Inc. announced on April 30, 2008 that it intends to merge with its majority shareholder Infogrames Entertainment S.A. ("Infogrames") which holds approximately 51.4% of Atari, Inc.'s common shares. Atari, Inc. believes that its delisting from The Nasdaq Stock Market will not affect the pending merger transaction.
Comments
It was inevitable.
I believe the stage after denial is acceptance...
Sad, but inevitable.
Will they at least keep their name?
R.I.P.
This is what, the second time Atari has died? Hopefully we'll end up getting some good games from this merger.
Maybe this'll be the kick in the ass that Atari needs to get back in the swing of things and start making some good games.
Prob not though. Let's start digging the grave for Atari, right next to Acclaim...
I think I read two lines trying to figure out what the hell Atari had to do with NASCAR before I actually focused. I was trying to think if delist meant that they couldn't make NASCAR games somehow.
I ate way too much at Benihana for lunch today, clearly.
Well at least this means theres not going to be a release of Dragonball Z: Budokai Tenkachi Arikado Tournament Super Battle 5
Sorry for being so ignorant of the stock market, but what does this really mean for Atari? Is this a business-ending event or what?
From market leader to desisted.
Makes you wonder where the xbox & playstation brands will be in 20 years.
@Stimpy:
No, they'll be fine for now. Just becoming a subsidiary instead of an independently run company.
*pours out a 40oz for dead homies*
If you own stock in Atari, what does this mean? Do you lose all your money? Or do you maintain the stock, but can't sell it so...it's good for nothing.
Whomp Whomp WHomp.... They couldn't maintian. Shareholders feeling anxiety
Infogrames the parent company will now change it's name to Atari and then name the games division infogrames and the cycle will be complete...
@Ehardergardens: complete in that it will again confuse the heck out of me and really not be the original atari at all..
Stay tuned for the Phil Harrison Autobiography: When Bad Decisions Get Worse. Due out this summer!
Who cares? The real Atari has been dead for years.
...and nothing of value was lost.
That's a nail on the coffin.
Why is it that none of their strategies for staying listed (and now getting re-listed) involve shipping some good games?
When a company starts focusing on business strategies and "prioritizing core competencies" rather than doing what they were founded to do the cart starts leading the horse.
Optimizing you business model is good, forgetting to make good games is bad.
So the Atari brand is once again just a label.
Sigh.
Atari, Acclaim, and Midway, time for a group hug -- Ship's going dooooown!
Then again, I saw Atari logos in Blade Runner, so there's hope that they'll still be around in 2019.
They just needed to release some good games... really their choice for products was pretty poor.
They need to do some marketing research, and figure out what games like GTA 4, Halo 3, and Uncharted: Drake's Fortune do right.
They also need to gather information from gamers because the root of their problem is they are putting stuff on the market that the majority of gamers do not want to play.
Atari killed itself long ago. In the cooperate climate of the post 2600 age, it got traded, tossed around like a rag doll and bastardized to no end.
It's kinda like a puppy that stepped on a landmine and lost it's vission, both legs, and abilit to eat most dry dogfoods, aptly named Lucky. A playful puppy in the past who's future looks bleak and desolate to the point where you seriously consider taking the poor thing out back and pulling an Old Yeller....
That is the sadness of Atari's plight.
haha Phil Harrison will be back on the job market here again soon.
Hey, Phil! Wanna help me start a gaming blog?
I jest. But it does seem as though him leaving Sony really was the wrong move.
@insaneo:
Infogrames, the majority shareholder of Atari stock, has proposed buying all outstanding Atari stock at 1.68/share sometime in the third business quarter.
I actually sold my shares earlier this week for a penny or two shy of that, because otherwise I was unsure how or when I would get my money back.
Dang! Last time Atari was delisted, they were trading under the symbol ATARD. I think they should have stuck with that one.
@psychicfriend:
ATARD, I'm sorry, who chooses that symbol?
I recently watched Blade Runner again, and it has an Atari game store in one of it's the city street shots.
It's funny how poorly movies predict the future....
@CaptMonkey: Thank you and goodnight. Let it die, already!
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