TMSR walking down BRODs gangplank?:"FOCUS- Broderbund sees loss, analysts see sale likely"
By Therese Poletti
"SAN FRANCISCO June 15 (Reuters) - Broderbund Software Inc., best known for video games ''Myst'' and ''Riven,'' said Monday it expects a loss in its third quarter and hired an investment banking firm, a move expected to lead to sale of the company.
Broderbund shares fell $3 to close at $17.1875 on Nasdaq.
Wall Street analysts said they believed the leading candidates to buy Broderbund, which also makes educational software such as ''Carmen Sandiego'' products and other products, are toy giant Hasbro Inc. of Pawtucket, R.I., Electronic Arts Inc., the largest developer of video games, or The Learning Company, an educational software developer.
Broderbund, based in Novato, Calif., said it retained the investment banking firm of Donaldson, Lufkin & Jenrette to ''explore strategic alternatives.''
''At this time, we are having discussions regarding strategic opportunities,'' said Joe Durrett, Broderbund's chief executive, in a statement. A company spokeswoman said she could not elaborate any further beyond that statement.
Two weeks ago, Computer Retail Week, a computer trade publication, reported that a widely circulated rumor at the big E3 video game trade show in Atlanta was that Hasbro Interactive, which is turning many of its board games into software, was in an ''acquisition mode'' and looking at Broderbund.
Hasbro officials were not immediately available. A spokeswoman for Electronic Arts, based in San Mateo, Calif., also declined to comment on rumors or speculation.
A spokeswoman for The Learning Company, based in Cambridge, Mass., also declined to comment.
Broderbund has been under pressure in all its markets. In education, The Learning Company and Cendant Corp. have been on major acquisition binges..."
source: © 1998 biz.yahoo.com |
