Officials from Commodore International Corporation (CIC) have announced the conclusion of the Commodore Gaming license agreement in a strategic partnership with The Content Factory which will last for five years, with the option for another five years beyond that.
The Commodore name, made famous in the '80s and '90s with the 8-bit Commodore 64 home computer and the 16-bit Amiga family, is owned by Yeahronimo Media Ventures, who announced in September of last year an intention to partner with The Content Factory to form the new company Commodore Gaming.
The transaction value of the deal is 18 million ($22.7m), of which 12 million ($15.1m) is in cash payment - over a period of five years - and 6 million ($7.6m) in shares. As a part of the agreement, CIC has acquired 49 percent of the shares in the Commodore Gaming joint venture, whilst continuing to be responsible for branding and marketing. At the conclusion of the transaction CIC has received 7 million ($8.8m) in cash and shares, as a first payment.
CIC and Commodore Gaming will now actively identify and pursue relevant merger and acquisition targets, as part of the company's goal to become a major worldwide player in the mobile games and entertainment market. The company has already announced plans to produce standalone TV devices similar to the successful Atari and Pac-Man
self-contained consoles. A new line of hardware was also unveiled at CES in January
, including the Navigator Combo - an upgradeable handheld device with GPS functions that also plays games, music and video files.
"Gaming is one of Commodore's key historic competences, and the conclusion of this agreement emphasizes Commodore's strategy to build on the strengths of the rich Commodore heritage", said Ben van Wijhe, president and CEO of CIC. "We announced this agreement in September of 2005. Since then various alliances were already closed, for instance with Telco Gaming and Gaming Federation. Now that the license agreement is concluded, Commodore Gaming will continue to create new types of game experiences and interactions. This ambition was recently demonstrated at the E3 trade fair in Los Angeles, where Commodore Gaming showcased the innovative Gaming Tower".