3DO Signs Definitive Agreement with Matsushita for $100 Million for M2 Technology; $60 Million to be Received Next Week.REDWOOD CITY Redwood City, city (1990 pop. 66,072), seat of San Mateo co., W Calif., on San Francisco Bay; inc. 1868. Manufactures include commmunications, electrical, electronic, and medical equipment. , Calif.--(BUSINESS WIRE)--Dec. 7, 1995--The 3DO Company today announced that it has signed a definitive agreement with Matsushita Electric Industrial Co., Ltd. for $100 million to license its 64-bit M2 technology. Under the agreement, Matsushita will pay 3DO a $100 million license fee plus additional royalties. 3DO expects to receive $60 million next week. The remaining forty million dollars is scheduled to be received mid next year. "The $100 million gives us the foundation to diversify our business," said Trip Hawkins William M. 'Trip' Hawkins III (born December 28[1], 1953) is a Silicon Valley American entrepreneur and founder of Electronic Arts, The 3DO Company and Digital Chocolate. , Chief Executive Officer of The 3DO Company. "We will exploit our core technology to enter the PC market with software and hardware, the Internet arena, as well as the 64-bit video game market. We are now a company that has the solid financial base needed to embark on a new course of building and growth." The 3DO Company's new business model is based on leveraging its core technology into the software and hardware areas. Under Studio 3DO, the company's development and publishing arm, it will create applications for the 64-bit M2 and PC platforms as well as the Internet. On the hardware side, it will license technologies to semiconductor companies, deliver hardware products such as digital video encoding systems, and continue to build technologies for the video game market. Under the signed agreement, Matsushita has exclusive rights to use the M2 technology to power next-generation consumer and commercial products including 64-bit video game systems, Digital Video Disc See DVD. Digital Video Disc - Digital Versatile Disc (DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. ) players and interactive television set-top boxes. Matsushita also has the rights to sublicense the M2 technology to hardware companies and software developers. 3DO has the rights to develop products based on the M2 technology for coin-operated arcade game An arcade game is a coin-operated entertainment machine, typically installed in businesses such as restaurants, pubs, video arcades, and Family Entertainment Centers. Most arcade games are redemption games, merchandisers, video games or pinball machines. systems, personal computer applications, general computing and software development tools. The 3DO Company (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :THDO), headquartered in Redwood City, Calif., designs, integrates and sells interactive technology and applications for the mass market. With offices in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe and Asia, the company licenses technologies and creates entertainment software for its 32-bit and 64-bit video game platforms, personal computer market and the Internet. Additional company information is available on the World Wide Web (http://www.3do.com) and on America Online See AOL. (keyword: 3DO). -0- Note to Editors: 3DO and the 3DO logos are trademarks and/or registered trademarks of The 3DO Company. All other brand or product names are trademarks and/or registered trademarks of their respective owners. CONTACT: The 3DO Company Diane Hunt, 415/261-3214 Tuesday Uhland, 415/261-3142 |
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