Atari takes steps to enhance its blockchain division

An Atari console
Atari takes steps to enhance its blockchain division

Interactive entertainment producer Atari has unveiled the next stage in the strategic development of its Atari Blockchain division.

The group continues to prioritise the development of NFTs, market places and virtual universes, notably by entering into a new license with CBI (Crypto Blockchain Industries SA), a company founded and led by Frédéric Chesnais, for the development of a blockchain enabled virtual worlds.  

This adds to licenses already granted to Sandbox and Decentraland and continues Atari’s blockchain growth strategy. Atari SA and CBI have entered into a non-exclusive licensing agreement with an initial term of three years, renewable for two subsequent terms of two years, with a royalty rate of 50% of net revenue generated by the licensed products. Atari also has an option to purchase 5% of the fully diluted equity of CBI at nominal value, once CBI has received financing of at least $1 million from third-parties. CBI is an investment company in the blockchain space and notably intends to develop a virtual world that will integrate the Atari Token for transactions.

In order to avoid any conflicts of interests, Frédéric Chesnais is resigning from the board of directors of Atari SA. He will continue to provide consulting services to the licensing business (Atari Gaming division) through a consulting agreement signed in June 2021 with an initial term of 10 months. Frédéric Chesnais will also continue to be involved with Atari Chain, the subsidiary of Atari SA equally owned by Atari and the ICICB Group, and responsible for the development of the Atari Token.

Wade J. Rosen, Atari CEO, said  “Atari is very optimistic about the future of blockchain and we are excited to keep working with Fred to develop an additional virtual world that includes the Atari brand and will benefit both Atari and CBI going forward.”

The internal organisation of the blockchain division aims to ensure the continued development of Atari NFTs, as well as to continue to add new diverse use cases, notably in the video game space, through licensing agreements. The option to structure this blockchain division as an autonomous entity with a view to a possible spin-off to Atari shareholders by listing of this new entity is still being evaluated.

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