Atari appoints new CEO
Video game company makes appointment as it works to turn around its business amid an industry slump.
Ending a CEO search that started in June 2005, Pierce takes over from Bruno Bonnell, who will continue to serve as chairman and chief creative officer. Atari said Pierce has more than 20 years of executive management experience with major entertainment companies such as Universal Pictures, MGM, Sony Pictures and Sony Music Entertainment.
"The company has been suffering with a void in senior management for several quarters and the appointment of Mr. Pierce is one critical piece of the puzzle," said Edward Williams, a video game analyst at BMO Capital Markets, who has a "market perform" rating on the stock.
Atari, a New York-based subsidiary of France's Infogrames Entertainment, last month posted a fiscal first-quarter net loss of $7.1 million. The company has slashed costs and sold games and studios in an effort to improve its troubled finances.
As executive vice president and general manager of Sony BMG Music Entertainment, Pierce spearheaded the restructuring and turnaround of Sony Wonder, its children's music and home video arm, Williams said in a client note.
Pierce, who was awarded stock options to purchase 1 million Atari shares, will receive an annual salary of $600,000 and be eligible to receive performance-based bonuses, the company said in a regulatory filing.
Atari shares ended a penny higher at 70 cents after reaching 74 cents in regular Nasdaq trade. The stock has fallen sharply since trading above $3 in June 2005.