It’s “Pong” for a song.
Classic video-game maker Atari filed for Chapter 11 bankruptcy protection late Sunday in a bid to break away from its troubled parent company and go private at what could be a bargain price.
Founded in 1972, Atari was a pioneer in home video gaming, with iconic titles such as “Pong,” “Asteroids” and “Centipede.” Late Apple co-founder Steve Jobs got his start with the company in its early days.
While Atari titles have big name recognition and evoke widespread nostalgia, the brand won’t attract top dollars, according to Michael Pachter of Wedbush Securities.
“The brand and a handful of intellectual properties are all they have left,” Pachter said. “Yes, somebody will pay for those, and no, they won’t pay much.”
Atari’s US arm, which is based in New York, is looking to get out from under its debt-laden parent company as it relaunches as a mostly mobile game maker.
Atari SA, the French company formerly known as Infogrames Entertainment, has struggled since it took control of the Atari brand more than a decade ago. Shares of the company, which trade in Paris, are down 50 percent in the past year, giving it a market value of around $34 million.
Atari, whose ownership has changed hands a number of times over the years, expects to find a buyer willing to take over the “iconic brand” for a “song,” said a source close to the private-equity industry.
However, it was still too early in the bankruptcy process to name any potentially interested parties, the source added.
“Within the next 90 to 120 days, the companies expect to effectuate a sale of all, or substantially all, of their assets,” Atari said in a statement.