Interplay Entertainment Corp., the Irvine-based video game maker, said Thursday it has signed a $25-million investment deal that will give French software developer Titus Interactive S.A. a 57% stake in Interplay.
Shareholders are scheduled to vote on the proposal Aug. 24 at Interplay's annual meeting.
Titus, which already owns 12% of Interplay, tentatively agreed to pay $4 a share for an additional 6.25 million shares, a healthy boost over Interplay's closing stock price of $2.66 a share Thursday. In addition, Brian Fargo, Interplay's founder and chief executive, is selling 2 million of his own shares for an undisclosed number of Titus shares.
Interplay plans to use the proceeds to repay debt and for general business purposes.
Titus' Chairman and Chief Executive Officer Herve Caen will join Interplay's board of directors along with Eric Caen, Titus' head of development. They will replace Universal Studios executives Mark Pinkerton and Kenneth Kay, who resigned from Interplay's board after Titus announced its plans in May to purchase Universal's chunk of Interplay stock.