This is one source of the buyout talk.
NEW YORK, Oct. 1, 1999 1:00 p.m. ET (JagNotes.com)
Mattel Eyeing Acclaim Entertainment; Is Mattel's Board Ready to Boot Jill Barad?
Don?t be surprised if Barbie turns into a video game nut.
Talk is circulating in toy and game circles that Barbie?s parent, Mattel (MAT), the country?s biggest toy maker, is exploring the idea of acquiring Acclaim Entertainment (AKLM), a leading manufacturer of home video game software.
The idea here, so the story goes, would be to combine Acclaim with The Learning Co., the world?s second largest consumer software company after Microsoft. Mattel acquired The Learning Co. in May in a transaction valued at $3.8 billion.
Giving credence to a Mattel-Acclaim deal, Tony Bordon, president of The Learning Co.?s international division, told game media, including FGN (Fastest Game News) Online that Acclaim "is of interest to us."
He further told the e-zine that TLC, a big player in the children's software market, now wishes to expand into the mainstream. TLC has already acquired Mindscape, producer of the Circuit Breakers and Prince of Persia 3D video games, and Bordon said, "We either have to take over another operation in the games market or expand our product range by strategic partnerships."
In effect, Bordon is confirming Mattel's interest in acquiring Acclaim Entertainment.
Bordon could not be reached, and both Mattel and Acclaim declined comment.
Acclaim, so I'm told, would be amenable to a deal at around $15 a share, or about $820 million.
Such a buyout price would be roughly double its current level of 7 5/8 ...
jagnotes.com
Everyone ready for a possible quick double from here?
Mark |
