OCT. 31, 2007 • FUNImation served Atari with a notice to terminate its Dragonball Z licensing agreement. The former alleged Atari breached the licensing agreement, which the publisher disputes. As Atari continues to distribute its Dragonball Z games, negotiations are under way with FUNImation to work out a temporary compromise to satisfy both parties while they attempt to resolve their issues. Atari earned $85 million off the franchise in its 2005 fiscal year. If the license is lost, Atari said in recent SEC reports that there would have a material adverse effect on the company’s financial position. For the fiscal year ending March 31, Atari posted a $69.7 million loss.

Impact: The Dragonball Z license has been the savior of struggling publisher Atari.  Saying that losing the license would have a material adverse effect on the company is definitely not an overstatement.