GT Interactive acquires Warner Interactive Europe.
Move strengthens GT Interactive's European presence; Establishes direct operations in France and Germany
In a move that further strengthens and expands its presence in the rapidly growing European interactive entertainment market, GT Interactive Software Corp. (NASDAQ:GTIS) today announced the acquisition of Warner Interactive Entertainment, a European subsidiary of Warner Music Group and the company's interactive entertainment software business outside North America, in a cash transaction.
The newly acquired European units establish direct GT Interactive operations in France and Germany under GT Interactive Ltd., the company's London-based subsidiary, as well as a direct presence for GT Interactive in Australia. As part of the transaction, GT Interactive also acquires an internal product development team of graphic designers, artists and programmers based in Manchester, England.
"We see significant growth opportunities for GT Interactive overseas, particularly as the installed base of next generation console systems becomes more meaningful in 1997," said Ron Chaimowitz, president and chief executive officer of GT Interactive. "The establishment of our own operations in France and Germany through this acquisition builds upon our presence in the U.K., accelerates our exploitation of these markets and solidifies our position as a leading global consumer software publisher."
"Warner Interactive Entertainment has built a solid sales, marketing and product development operation in the European market that we believe will elevate our efforts in this important territory," said Harry Rubin, executive vice president and general manager, International Division and Business Affairs for GT Interactive. "By adding the creative talent of Warner's software production staff as well as a portfolio of compelling products and strategic development relationships, GT Interactive has become a formidable force in the European marketplace."
As part of the Warner Interactive Entertainment transaction, GT Interactive acquires certain rights to several Warner software titles, including the internally developed Pitball for Playstation; Z for Playstation, created by the Bitmap Brothers; and various products created by Sensible Software including the forthcoming Sensible Soccer 2000 as well as other titles from leading European developers for PC and console systems. In addition, GT Interactive obtains rights to the highly anticipated Millenium title, Creatures, in which whimsical creatures grow in eggs, hatch and develop personalities driven by artificial intelligence.
Approximately 70 employees comprise Warner Interactive Entertainment Europe, including sales, marketing, and finance operations based in France, Germany and Australia as well as internal programming operations based in Manchester, England, and product development operations in London.
Headquartered in New York, with offices in San Francisco, Minneapolis, Phoenix and London, GT Interactive Software Corp. is a leading global publisher of interactive entertainment, edutainment and reference software for IBM-compatible and Macintosh computers as well as 32- and 64-bit gaming systems. Among the company's best-selling titles are Duke Nukem 3D and Doom II. Located at www.gtinteractive.com on the World Wide Web, GT Interactive is publicly traded on the NASDAQ National market under the symbol GTIS.
CONTACT: GT Interactive, New York
Allyne Mills, 212/726-4202
Dawn Berrie, 212/726-4235
Will Panous, 818/954-1967
|Printer friendly Cite/link Email Feedback|
|Date:||Nov 25, 1996|
|Previous Article:||Blyth Industries announces record third quarter earnings.|
|Next Article:||Education Management Corporation reports first quarter financial results.|