Atari, Inc.

Atari, Inc. IPO

Atari, Inc. is a renowned American video game developer and publisher that has a rich history in the gaming industry. The company, originally founded in 1972, experienced significant success during the early years of the video game revolution with iconic titles such as Pong, Asteroids, and Centipede. However, due to various factors, including the video game market crash in 1983, Atari faced financial difficulties and underwent several ownership changes.

In 1993, Atari emerged from bankruptcy when it was acquired by JT Storage, a manufacturer of hard disk drives. In that same year, Atari made its debut on the NASDAQ stock exchange in December 1995, using the stock symbol GTIS.

The company raised $140 million through its initial public offering, making it one of the largest IPOs of the year, second only to Netscape’s. Atari achieved a significant revenue growth of 134% in the year, reaching $234.4 million. However, the company faced its first indication of future challenges as profits only increased by a modest 23% to $22.6 million.

The new Atari, Inc. shifted its focus to software and hardware development, publishing games across multiple platforms. Since then, the company has had a turbulent journey, changing hands multiple times and experiencing various rebrandings and restructuring efforts.

Atari, Inc. IPO Prospectus

A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find Atari, Inc.’s Prospectus here.

Company Overview & History

Atari, Inc. is a pioneering company in the video game industry and is widely recognized for its contributions to the early development of home gaming systems. The company played a crucial role in popularizing video games and establishing them as a mainstream form of entertainment. Atari’s arcade machines and home consoles introduced many groundbreaking titles that captivated gamers worldwide.

Throughout its history, Atari has released several innovative gaming platforms, including the Atari 2600, Atari 5200, and Atari Jaguar. These consoles brought iconic games like Adventure, Breakout, and Missile Command into the homes of millions of players. Atari’s legacy as a pioneer in the gaming industry remains strong, and it continues to hold a special place in the hearts of many gaming enthusiasts.

Financial Performance

Year	Revenue(€M)	Net Income(€M)	Operating Income(€M)	Operational Cash Flow(€M)
2022	14.9	N/A	-23.0	N/A
2021	18.9	N/A	-11.6	-1.8

Business Model

Atari, Inc. operates as a video game developer, publisher, and licensor. The company develops and publishes games for various platforms, including consoles, mobile devices, and PCs. Atari’s business model revolves around creating captivating and immersive gaming experiences that resonate with players of all ages.

In recent years, Atari has also embraced the trend of retro gaming, leveraging its rich catalog of classic games to appeal to nostalgic gamers. The company has released modernized versions of its iconic titles, often incorporating new features and enhanced graphics while maintaining the essence of the original gameplay. Furthermore, Atari has explored partnerships and licensing agreements to extend its brand into other areas, such as merchandise, movies, and television shows.

Market Cap Over the Years

Year	Market Cap($B)
2022	11.4

Risk Factors

Atari has faced several risk factors throughout its history. In 1997, the company’s share of the entertainment software market dropped to a low of 6.4%, and it had a high debt/equity ratio of 41%, significantly higher than other companies like Electronic Arts, which had a debt/equity ratio of just 8%. In 1999, Atari posted first quarter losses of $90 million due to restructuring costs, and its CEO was replaced.

The company’s revenues fell 30% to $408 million in 1999, and it posted a net loss of $254 million for the year. In 2006, the company faced delisting from the NASDAQ stock exchange due to its price having fallen below $1.00. A year later, Atari was reported to be running out of money, losing $12 million in the first fiscal quarter of 2008. These risk factors highlight the volatility and uncertainty in the video game industry, as well as the challenges Atari has faced in maintaining financial stability and market share.

Market Opportunity

Despite the challenges and risks, Atari has also had significant market opportunities. The company has gained access to large software markets through acquisitions and has secured the rights to publish games based on popular franchises. The company’s game “Unreal,” published in 1998, sold over 800,000 copies in the first 10 months, and “Driver,” released in 1999, sold approximately 1 million copies.

In more recent years, Atari has diversified its operations, launching a new line of hotels, opening up opportunities in the hospitality industry. The company also entered the cryptocurrency market with Atari Token, further diversifying its revenue streams and opening up potential growth opportunities in the digital economy

Competitors

Electronic Arts
Nintendo
Sony Interactive Entertainment
Activision Blizzard
Ubisoft
Take-Two Interactive
Microsoft Corporation (Xbox)
Square Enix

Key/Fun Company Facts

Atari was formerly known as GT Interactive Software Corp. and Infogrames, Inc., before finally being renamed Atari, Inc. in 2003.
In 1997, Atari signed a deal with MTV to publish games based on Beavis and Butt-head and Æon Flux.
In 1998, Atari published the popular game “Unreal,” which sold over 800,000 copies in the first 10 months.
In 2020, Atari launched a line of hotels, diversifying its business into the hospitality industry.
In 2021, Atari entered the cryptocurrency market with Atari Token