Gamasutra is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
July 6, 2022
arrowPress Releases
If you enjoy reading this site, you might also want to check out these UBM Tech sites:


Shareholders Make Offer For Majesco

Shareholders Make Offer For Majesco

March 28, 2006 | By David Jenkins

March 28, 2006 | By David Jenkins
Comments
    Post A Comment
More: Console/PC



A shareholders group, including previous investor Trinad, Group have made an offer to Majesco to buy 2 million shares in the beleaguered publisher at a price of $1.50 a share. As part of the deal, the Trinad Group would wish to nominate three people for election to Majesco's board at the company's 2006 annual meeting.

The Trinad Group currently owns a 12.4 percent stake in Majesco and has already attempted to move its representatives onto Majesco's board with a proffered $5 million investment in September of last year. The offer was not accepted, which Trinad warned would lead to them seeking to "become more actively involved in the company" - a threat which presumably is at the heart of today's announcement.

Majesco recently reported quarterly results showing a loss of $2.6 million, increased from $400,000 a year previously. The company began to experience trouble in 2005 when it attempted to move into high budget console publishing with titles such as Advent Rising and the critically acclaimed Psychonauts. The games were not sales successes though, leading to the resignation of the CEO and a move back into "value and handheld games".

The Trinad Group is now suggesting that Jessie and Joey Sutton, the sons of Majesco CEO Morris Sutton immediately resign or be removed as officers of the company and has also indicated that it intends to file a lawsuit against the company and several current and former directors and officers, alleging that they breached their fiduciary duties while managing the business affairs.

It is also claimed they engaged in self-dealing transactions to further their personal interests, usurped corporate opportunities, mismanaged and wasted the company's assets and used poor judgment in appointing certain officers.

The shareholders group has indicated that its offer to buy Majesco shares will lapse on Wednesday, although no indication is made of what the group intends to do if this new offer is not accepted.


Related Jobs

Skydance
Skydance — Santa Monica, Los Angeles, California, United States
[07.05.22]

Senior Game Producer - Game Team
Arrivant
Arrivant — Remote, California, United States
[07.05.22]

Art Director
Build a Rocket Boy Games
Build a Rocket Boy Games — Edinburgh, Scotland, United Kingdom
[07.04.22]

Lead Physics Programmer
Build a Rocket Boy Games
Build a Rocket Boy Games — Edinburgh, Scotland, United Kingdom
[07.04.22]

Lead UI Programmer









Loading Comments

loader image