French Firm Acquires Stake in Interplay

French software developer Titus Interactive has acquired a 12% stake in Irvine video game developer Interplay Entertainment Corp. for $10 million, and the two companies will be discussing possible business combinations in the future, Interplay said Friday. Titus acquired 2.5 million shares of stock at $4 a share, about 61% above the closing price of $2.47 a share on Friday.

The deal was announced after the U.S. markets closed. Interplay said Titus may acquire up to 2.5 million additional shares of stock, and has been granted an option to acquire the 25% stake that Universal Studios Inc. holds in Interplay.

Interplay also said it has negotiated an extension on its line of credit to Jan. 1. The Titus stock purchase and the credit extension should alleviate cash-flow and short-term debt concerns, Chief Executive Brian Fargo said in a statement.