Atari SA (OTC:PONGF) has acquired the publishing rights for RollerCoaster Tycoon 3 from Frontier Developments PLC (OTC:FRRDF) for $7 million.
According to IGN, this acquisition includes various RollerCoaster Tycoon games, spanning from RollerCoaster Tycoon Classic to RollerCoaster Tycoon Touch. The move is part of Atari's strategy to expand distribution and explore merchandising opportunities to elevate the franchise.
Frontier Developments, known for games like Elite: Dangerous and Zoo Tycoon, faced financial challenges, prompting the sale.
The transaction, consisting of $4 million upfront and a $3 million deferred payment, bolsters Frontier's cash reserves. RollerCoaster Tycoon 3 alone has been generating $1.5 million in annual profits since Frontier acquired the rights in 2018.
Despite recent struggles, Frontier remains optimistic, citing strong sales from titles like Jurassic World Evolution 2 and Planet Zoo. They plan to release three creative management simulation (CMS) games over the next three financial years while supporting existing titles such as Elite Dangerous and F1 Manager.
"The proceeds of the disposal will be utilized by the Company for general working capital purposes," Frontier said, as per IGN.
Meanwhile, Wade Rosen, Atari's Chairman and CEO, expressed his enthusiasm for the acquisition. "As we mark the 25th anniversary of Rollercoaster Tycoon with Chris Sawyer," Rosen said. "I'm thrilled that we're bringing this pivotal title together with the rest of the franchise."
"This move opens up new opportunities for Atari as we build upon Frontier's legacy and cater to the devoted fanbase of Rollercoaster Tycoon games," the CEO added.
Price Action: Atari is currently trading at $0.12 down 8% in the past 24 hours, according to Benzinga Pro.
Image courtesy of Frontier Developments via Steam.