Warner Communications buys Atari

AtariForking over approximately $28,000,000 for the privelege of becoming a player in the video game industry, Warner Communication buys Atari, which had previously been privately owned by Nolan Bushnell and other investors. Though Bushnell remains on Atari’s board for a time, he is eventually removed and replaced by former Burlington Textiles vice president Ray Kassar. At this point, Atari’s most recent product is Atari Video Music, a device that connects to home stereo systems and television sets, producing psychedelic patterns synchronized to music; the company is spending the latter half of 1976 not releasing video game products in an attempt to sit out terms of a legal settlement with Magnavox.

More about Atari Video Music in Phosphor Dot Fossils