|
Learning Company expands
|
 |
June 22, 1998: 1:59 p.m. ET
Educational software developer buys game maker Broderbund for $420M
|
NEW YORK (CNNfn) - The Learning Company Inc. said Monday it has agreed to acquire computer game maker Broderbund Software Inc. for approximately $420 million in stock.
The Learning Company (TLC), which develops and markets educational software, said it will swap 0.8 of a share of its common stock for each outstanding Broderbund (BROD) share.
The companies said their boards of directors have approved the deal and expect the merger to be completed by September.
Last week, Broderbund, developer of the popular Myst interactive computer game, warned of lower-than-expected third-quarter financial results because of higher product returns and consumer rebates. Many of those returns came from Riven, Myst's sequel.
In May, Broderbund said it was considering cutting jobs to slash its operating expenses.
The Broderbund merger has been a long time in the making.
In 1995, SoftKey International Inc. acquired The Learning Company for $607 million. Prior to that deal, The Learning Company agreed to merge with Broderbund, but that move was derailed when SoftKey attempted a hostile takeover of Broderbund.
SoftKey later backed off its bid as part of the agreement to purchase The Learning Company.
Shares of The Learning Company (TLC) were unchanged at 25 in midday trading. Broderbund (BROD) shares climbed 2-13/16 to 19-5/16. 
|
|
|
|
|
 |
|
